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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-20-2003MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY November 20, 2003 PRESENT: Commissioners Susan Henderson, Steve Ludovissie, Leon Michlitsch, Tim Bildsoe ABSENT: Commissioner Jenny Hibbard STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes, Office Support Representative Barb Peterson OTHERS PRESENT: Grace Management Representative Jody Boedigheimer, Hammer CEO Tim Nelson 1. CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order November 20, 2003 at 7:00 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Ludovissie, seconded by Chair Henderson, approving the September 18, 2003 minutes. Vote. 4 Ayes. Motion approved unanimously. 3. CONSENT AGENDA A. Plymouth Towne Square - Accept monthly housing reports. B. Proposed Changes to Plymouth Towne Square Admissions and Occupancy Handbook C. Approve resolution requesting the City sell the property at Northwest Boulevard and Schmidt Lake Road to the Plymouth HRA. MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, approving the Consent Agenda items. Vote. 4 Ayes. Motion approved unanimously. 4. NEW BUSINESS A. CDBG Funding — Hammer Residences Application Housing Manager Barnes introduced Tim Nelson, CEO of Hammer Residences. Mr. Nelson gave an overview of his organization stating that Hammer serves approximately 150 people with developmental disabilities. He said the majority of residents live in small homes in the Plymouth Housing and Redevelopment Authority November 20, 2003 Page 2 community, many in Plymouth. Hammer also provides aid for people in family homes or apartments by providing staff to help them. He described other services they provide, such as support coordination, to help families determine what services they need and are also in the process of looking at providing respite care. Mr. Nelson said that Hammer Residences has been in existence since 1923. Chair Henderson asked how many homes they have in Plymouth. Mr. Nelson replied there are about 60 people in 15 homes. He thanked Plymouth for being so supportive of Hammer Residences. Housing Manager Barnes explained that Hammer Residence is requesting $20,000 for the installation of a wheelchair platform lift at Merrimac House. Mr. Barnes said this is only one part of the total renovation of that home. The funds staff would use to assist Hammer will come from the Affordable Housing Development Account, which currently has approximately $41,000 in uncommitted funds available. Chair Henderson asked when the program year ends. Housing Manager Barnes said the year runs from July 1 to June 30. Commissioner Ludovissie asked if that amount includes all prep work. Mr. Nelson indicated it was the total cost for installation. Commissioner Bildsoe asked for an explanation as to how this project fits into the Affordable Housing Development Account. Housing Manager Barnes said that this account is part of the HUD Comprehensive Plan, and when we accepted the plan we indicated to HUD what this account would be used for, which is to assist in the development and renovation of housing projects as they come forward to us. That leaves flexibility as long as we are meeting the objectives of the CDBG program. Chair Henderson noted that the project also fulfills the Consolidated Annual Performance and Evaluation Report (CAPER). MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving HRA Resolution 2003-17 providing funding for the installation of a wheelchair platform lift for Merrimac House, requested by Hammer Residences. Vote. 4 Ayes. Motion approved unanimously. B. Plymouth Towne Square Operating Budget and Reserve Accounts Grace Management Representative Boedigheimer asked if there were any questions. Chair Henderson asked why the HRA subsidy has dropped by $20,000. Housing Manager Barnes said the HRA subsidy is determined by figuring all the costs of running Plymouth Towne Square and then the revenue is projected to determine what the shortfall will be. He said the goal is to have a zero cash flow figure. Commissioner Ludovissie asked about investment income and why there was a decrease in that figure. Housing Manager Barnes said they look at the City's investments and work with the Finance Department to determine what the investments will potentially earn. Housing Manager Barnes reminded the Board that this figure is two months old. He said two things could happen with this account if investments do better than projected. Either less of the HRA subsidy will be used so the dollars will stay in the HRA reserve or the Plymouth Towne Square reserve will grow. Plymouth Housing and Redevelopment Authority November 20, 2003 Page 3 Commissioner Ludovissie asked about the $60,000 in the replacement reserve for carpet, etc. and asked if bids had been obtained. Ms. Boedigheimer replied they had been, but feels the amount is high. She said the figure is an estimate based on bids from a year ago. Commissioner Ludovissie asked if the commissioners will be approving these items as they come up. Housing Manager Barnes said the way the budget is written now they would not, but the commissioners could request a change so each item would need to be approved separately. Director Hurlburt said the specs could be brought back to the HRA Board for any projects which are proposed and multiple quotes will be needed. Commissioner Bildsoe asked if accounts receivable have been a problem. Ms. Boedigheimer said one resident was behind but has moved out. Commissioner Bildsoe asked if there was a late payment fee in place or what the policy is for late payments. Ms. Boedigheimer said the policy might be stated in the lease, but if not a policy should be added. Housing Manager Barnes said a copy of the lease could be furnished at the next meeting and changes could be made if necessary. Discussion occurred regarding the expensing of items and how it should be shown in the budget. Housing Manager Barnes said the HRA is trying to conform to the City's guidelines and rely on their financial expertise. Commissioner Ludovissie said he is concerned about large deficits that could occur in the operating account due to accumulated expenses such as refrigerators and stoves that are not included in the replacement reserves. Chair Henderson said the big factor is that we do have the reserves to use. Housing Manager Barnes said they could add items to the replacement schedule and bring the replacement schedule back in December. Commissioner Ludovissie did not think that would be necessary but suggested they may want to do replacement items in larger quantities than what is anticipated in the budget. Chair Henderson suggested making a separate schedule called expense. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to transfer 93,401.00 from the Operating Reserve account to the Replacement Account. Vote. 4 Ayes. Motion approved unanimously. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the Plymouth Towne Square Budget and Reserve Replacement Schedule. Vote. 4 Ayes. Motion approved unanimously. C. HRA 2004 Budget Housing Manager Barnes indicated that the Council had expressed concerns with the increase in the HRA's budget and tonight would be the opportunity to recommend a change in the levy before it goes to the City Council. He discussed the prepared 2004 budget, including the additional $75,000 requested to supplement existing programs. Mr. Barnes explained how the market value credit would be reduced for both 2003 and 2004 because of changes made by the legislature. For 2003 the amount of the state aid decrease would be $8,285 and for 2004 the decrease will be $11,046. Mr. Barnes said that if the Board wishes to compensate for the state aid loss the levy increase would be $116,150. Plymouth Housing and Redevelopment Authority November 20, 2003 Page 4 Housing Manager Barnes provided background information regarding the CDBG program which has been the sole source of funds for the Rehabilitation (Rehab) and First Time Homebuyer FTHB) programs. He said we are in almost the same place financially that we were back in 1995. He provided history on the FTHB and Rehab loan programs. Mr. Barnes stated that both funds are out of money until July, 2004. Commissioner Bildsoe said he requested this item to be on the agenda because the budget for the City is going up and he feels that this year is not a good time to be creating double digit increases in the HRA budget. He feels the increase should be toned down and not increase the budget as much as proposed. Mr. Bildsoe said the $75,000 is a discretionary number and could be decreased. Chair Henderson asked what the levy was last year. Housing Manager Barnes replied the levy was $552,000 last year, and this year it is $657,000 which is a 19% increase. Commissioner Ludovissie said he has also reviewed the material and his position is unchanged from the previous meeting and feels that a 5% range increase would be favorable. Commissioner Bildsoe feels that by keeping the City taxes lower it will keep people in their homes and provide affordable housing that way. Director Hurlburt said the HRA tax levy is reported in the special tax jurisdictions section on the tax statement and does not show the dollar amount. Commissioner Bildsoe said he voted in favor of raising the budget amount at the last meeting but has since questioned the timing of it. Chair Henderson stated she has mixed feelings about raising the amount and feels it is something that could wait and be done later. Chair Henderson suggested taking funds out of retained earnings and use them for a special project. Director Hurlburt said the decision does not have to be made tonight. If the City Council decides to reduce the HRA levy. The HRA can wait until the December 18th meeting to change their budget. Director Hurlburt said that tonight we need to decide what input to give the City Council, or assuming we don't know what the Council is going to do, what direction can the HRA Board give staff so they can draft the budget that can be adopted on the 181h. Chair Henderson is concerned about the $11,000 we are not going to receive as state aid. She said this would need to come out of the $75,000 increase in the budget, so the reduction in the levy would be about $64,000. Director Hurlburt said the increase would be held to $41,000 which would be about a 7.5% increase. Commissioner Michlitsch said he is in favor of a compromise such as the 7.5%. Director Hurlburt suggested that the City Council be informed that the HRA has met and they recommend that if the Council reduces the levy, the HRA would request an increase of $41,000 rather than $105,104. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch that the tax levy be increased to compensate for the increase in salaries, benefits and allocated costs and to offset the loss in State Aid. Vote. 3 Ayes. 1 Nay. Commissioner Ludovissie opposed. MOTION approved. Plymouth Housing and Redevelopment Authority November 20, 2003 Page 5 D. LO.C.P./PRISM Housing Week Donation Housing Manager Barnes explained the activities which will be happening during Housing Week and suggested approving a donation of $2000 to be split between IOCP and PRISM. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving a donation of $2,000 to be split evenly between IOCP and PRISM to support their housing programs. Vote. 4 Ayes. MOTION approved unanimously. 6. ADJOURNMENT MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to adjourn the meeting. Meeting adjourned at 8:40 p.m. HRA/Minutes/112003