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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-06-2001SPECIAL MEETING MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY August 6, 2001 PRESENT: Chair Susan Henderson, Commissioners Tim Bildsoe, Leon Michlitsch, and Steve Ludovissie ABSENT: Commissioner Sandy Hewitt STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes, Office Services Supervisor Denise Hutt, Office Support Representative Barb Peterson OTHERS PRESENT: None 1. CALL TO ORDER A special meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Henderson on August 9, 2001, at 7:04 p.m. 2. PRELIMINARY BUDGET AND TAX LEVY PLYMOUTH TOWNE SQUARE/HRA GENERAL FUND Director Hurlburt gave an overview of the staff report and explained the budget process. She spoke about the changes in the state property tax system, which will make budgeting more difficult this year, and how this change will affect the HRA budget. The HRA has three main budgets; the CDBG Fund, the Section 8 program and the HRA general fund budget. She explained that the HRA has authority over the General Fund and Section 8 program budgets but the City Council has authority for the CDBG budget and also the authority over the HRA property tax levy. Director Hurlburt explained the proposal for the increase in Section 8 staffing. Staff is requesting the addition of a .6 (FTE) full time equivalent position, which would be funded through the use of federal funds received for administering the program. The supervision duties of the Section 8 program providing .25 FTE of support recently assigned to the Support Services Manager would be funded through the 2002 tax levy. Staff is also requesting that 10% of the HRA Executive Director/Community Development Director position be allocated to the HRA’s General Fund budget. Director Hurlburt stated that these additional allocations would add approximately $30,000 to the General Fund Budget in 2002. Director Hurlburt spoke about the operating costs and subsidy levels for Plymouth Towne Square. The Plymouth Towne Square subsidy is funded from the HRA General Fund. A “break- even” budget is projected for 2002, however if tenant rents remain unchanged, the subsidy needed in 2002 should be less than the current budget by $22,000. Director Hurlburt talked about the amount of reserves projected for Plymouth Towne Square. Staff is recommending a detailed study on the repair and reserve funds but at this time will continue recommending that $500/unit/year in reserves would be the figure used for preparing the 2002 budget. Plymouth Housing and Redevelopment Authority August 6, 2001 Page 2 Plymouth HRA has received ten proposals from firms interested in the management of Plymouth Towne Square. The proposals contain a varied range for management fees, however, staff is not expecting a big change and does not see a need to increase the levy for next year. Commissioner Bildsoe inquired about the rental income at Plymouth Towne Square. He inquired about the history on rate increases. Director Hurlburt said the rates were raised once but only by a small amount. Commissioner Bildsoe also suggested we do a rent increase every so often to keep up with the market rents. Director Hurlburt explained that there will be new fair market rents in September which are used for the Section 8 subsidies and we can use them as a guide to raise the rents. Implementing these fair market rents would change the rental income amount. Commissioner Bildsoe asked about reserves and if we could transfer working capital reserve to the repair and replacement fund to make that a larger amount. Director Hurlburt explained the reserve balance worksheet and discussion took place. Commissioner Bildsoe stated that his preference would be to use the reserve funds rather than raise the HRA levy. Commissioner Ludovissie inquired about the levy in previous years. Director Hurlburt said that the HRA had planned to spend down reserves by $60,000 in 2001 to decrease the tax levy, but that the levy will increase for year 2002 because of state law changes. Commissioner Ludovissie said he understood the initial intent of the levy was to be used for Plymouth Towne Square. Director Hurlburt stated that in the first couple of years the money was used only for Plymouth Towne Square. Commissioner Ludovissie felt that we need to look at the rent structure but also need to make sure there are funds available in the rent structure to subsidize the reserve and prevent having to go back and raise the levy. Director Hurlburt explained that we need to do a complete analysis of the rent structure, and that the final amount of the levy can go down but cannot be raised, so it should be set high enough and then adjusted later. Commissioner Bildsoe asked what “phasing in changes” means on top of Page 4 in the staff report. Director Hurlburt explained that the HRA does not have to set definite subsidy levels at this time. The numbers can be changed in the middle of the year or gradually over time. Commissioner Ludovissie said he feels that the City Council has been very comfortable with the HRA budget but if they are strained in terms of raising adequate revenues they would be glad to endorse outside sources of revenue for the HRA. Commissioner Bildsoe explained that the HRA is a very small portion of the City budget. Director Hurlburt said that it gets grouped together as a whole with the City budget and explained that the City Council has the final approval of the HRA levy. Chair Henderson felt we should have a sufficient balance in the HRA General Fund to use if we need money for expenses such as we may have needed when the townhome was sold at Bassett Creek. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that the City Council adopt a maximum HRA property tax levy of $590,000 for 2002, that staff prepare detailed budgets for HRA and City Council approval, and that staff continue its analysis of the operating budget and rent subsidies of Plymouth Towne Square, as outlined in the July 13, 2001 staff report and as consistent with the HRA’s direction at its July 29 meeting. Vote. 4 Ayes. Motion adopted unanimously. Plymouth Housing and Redevelopment Authority August 6, 2001 Page 3 Jim Barnes, Housing Program Manager, gave the HRA Board a brief summary of his professional background. He stated that he will be concentrating his efforts on Plymouth Towne Square and looking at what other programs may be beneficial for the Plymouth HRA. Discussion was held regarding a process to follow when selecting a management company for Plymouth Towne Square. Chair Henderson suggested preparing an outline to follow with definite criteria, so the applying companies can be ranked evenly. Suggestions were presented and the Board requested that staff prepare materials to use. 3. ADJOURNMENT MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to adjourn the meeting. Meeting adjourned at 8:20 p.m.