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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 12-18-2003MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY December 18, 2003 PRESENT: Commissioners Steve Ludovissie, Leon Michlitsch, Tim Bildsoe, Jenny Hibbard ABSENT: Chair Susan Henderson STAFF PRESENT: Housing Program Manager Jim Barnes, Office Support Representative Janice Bergstrom 1. CALL TO ORDER Vice -Chair Bildsoe called the Plymouth Housing and Redevelopment Authority meeting to order December 18, 2003 at 7:00 p.m. 2. APPROVAL OF MINUTES MOTION by Vice -Chair Bildsoe, seconded by Commissioner Hibbard, approving the November 20, 2003 minutes. Vote. 4 Ayes. Motion approved unanimously. 3. CONSENT AGENDA A. Plymouth Towne Square. Accept monthly Housing Reports. B. Plymouth Towne Square. Review Plymouth Towne Square Lease Commissioner Ludovissie asked to discuss the Plymouth Towne Square lease. Vice -Chair Bildsoe moved Item 3B to 4C. Vice -Chair Bildsoe requested the addition of Item 4B January Meeting Date Change. MOTION by Commissioner Ludovissie, seconded by Vice -Chair Bildsoe, approving the amended Consent Agenda items. Vote. 4 Ayes. Motion approved unanimously. 4. NEW BUSINESS A. Adoption of the Revised 2004 HRA Budget Housing Program Manager Barnes gave an overview of the December 2, 2003 staff report. He said the Council had acted on the HRA Board's recommendation to reduce the levy. The Plymouth Housing and Redevelopment Authority December 18, 2003 Page 2 75,000 increase for supplemental funding for rehabilitation programs was removed, which effectively lowered the proposed HRA levy by $63,954 or 7.48%. Housing Program Manager Barnes said there are also some slight differences in line items. Vice -Chair Bildsoe commented the adjustments in the budget to save dollars was well received by the City Council. Commissioner Ludovissie observed that the Intergovernmental Revenues for grant monies had been decreasing and asked if the sources of income have dried up. Housing Program Manager Barnes clarified that we have budgeted for requests for proposals we see twice a year from county or state. As projects come up, if we are successful, we apply for the grants. Commissioner Ludovissie asked about projected interest income for 2004. Housing Program Manager Barnes said the Finance Department had confirmed in September that they were running behind on the interest income projection of $25,000. Our fund balance is combined with other City investments and the HRA gets a pro -rated percent. Vice -Chair Bildsoe added that because of the lower interest rates, the City has shortened up the maturities on their investments, which results in a lower yield. Commissioner Ludovissie asked if the 2004 net gain of $38,000 is a result of a reduction in contributions to the senior housing rental assistance fund. Housing Program Manager Barnes explained that less money will be applied to senior housing but other costs have gone up which balance it out. Individual rents were changed but the overall rent collection remained the same. Housing Program Manager Barnes said predominantly the refinancing has resulted in the increase. Commissioner Ludovissie asked about the increase in the general fund for some personnel expenses. Housing Program Manager Barnes said because the HRA staff are City employees, the Finance Department determines all of the costs up front for every budget, including the HRA general fund and CDBG budgets. Higher health cost benefits, union contracts and other personnel changes factored into the increase. Commissioner Ludovissie asked for definition of, "Other Professional Services". Housing Program Manager Barnes said these dollars allow the HRA to hire consultants as projects materialize. Vice -Chair Bildsoe inquired about Employee Training Fees. Plymouth Housing and Redevelopment Authority December 18, 2003 Page 3 Housing Program Manager Barnes responded that these fees are used to send employees to seminars or sessions offered from various organizations, such as NAHRO, which offer training courses focused toward housing and economic development programs. Commissioner Ludovissie noted the CDBG budget indicates a 20% decrease in monies, while expenses continue to rise at 6.5%. Housing Program Manager Barnes explained the HRA's fiscal year is calendar year; CDBG's fiscal year is July I" through June 30t . He noted that in 2001, 2002, and 2003 a large amount of unspent CDBG dollars carried forward, giving the appearance of larger revenues. Allocations were the same but expenditures were down. Housing Program Manager Barnes continued that there were programmatic issues in the past which have since been resolved, and anticipates the balance will be close to zero in the fiscal year. Commissioner Ludovissie commented that overall he supports the proposed budget, but does have a problem with the levy, which is an ongoing issue - not a one time thing. Commissioner Ludovissie stated that each year the HRA should carefully scrutinize the levy and carefully monitor the dollars spent. He added that it is not the dollars, but the principle. Commissioner Hibbard concurred and stated it would be good to relook and ensure that we have a solid reason for the levy and can justify how we are allocating money to other programs. Vice -Chair Bildsoe said the City as a whole spends money on services that can vary up or down and still maintain similar services, such as public safety, snow plowing, community development, etc. He noted that the most of the money budgeted for the HRA goes to a program or a person, and is not heavy with administrative costs. Vice -Chair Bildsoe said he will stress, as a goal for the City for 2004, to review how to deliver services "to the customer" in the most efficient manner. This would affect the HRA thru allocations the City makes to the HRA in terms of expenses. Commissioner Ludovissie said the higher dollar amount is a sensitive issue and the HRA needs to use the proper approach to ensure that funds collected are disbursed properly. MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard to approve the 2004 HRA revised budget. Vote. 4 Ayes. Motion approved unanimously. 4B January HRA Meeting Schedule Change Housing Program Manager Barnes said Chair Susan Henderson will be unavailable January 15, 2004 and requested the meeting be changed if possible. Also, the request to call for a public hearing on the purchase of the property at Schmidt Lake Road and Northwest Boulevard was tabled by the Council at their December 16th meeting. The Council requested holding a joint meeting with the HRA to discuss this issue. Plymouth Housing and Redevelopment Authority December 18, 2003 Page 4 Commissioner Ludovissie asked if Council had given any direction regarding their concerns for the property at Schmidt Lake Road and Northwest Boulevard. Vice -Chair Bildsoe responded that the Council wants to understand the intended use for this property and anticipate issues surrounding such use. Commissioner Bildsoe added that previously a study had been done regarding a density change, and this was controversial because of the proposed zoning change and resulting density issues. MOTION by Vice -Chair Bildsoe, seconded by Commissioner Hibbard, to reschedule the HRA meeting from January 15, 2004 to a joint City Council/HRA meeting on January 22, 2004. Vote. 4 Ayes. Motion approved. 4C. Plymouth Towne Square Commissioner Ludovissie referenced Section III, A. 2. Late Rents, "...resident must contact Management and explain circumstances". Commissioner Ludovissie stated this language conflicts with the termination provision in the lease. Commissioner Ludovissie stated he does not support having this verbage in the lease as it should be up to landlord and this creates one more avenue to potentially delay rent. Vice -Chair Bildsoe concurred with Commissioner Ludovissie's comments, and added they should work with the tenants on an individual basis, as long as they are fair. Housing Program Manager Barnes said this is Grace Management's lease and he will review it with them. Vice -Chair Bildsoe stated that the HRA Commission accepts the recommended change for the lease. 5. ADJOURNMENT MOTION by Vice -Chair Bildsoe, seconded by Commissioner Michlitsch, to adjourn the meeting. Vote. 4 Ayes. Meeting adjourned at 7:33 p.m. HRA/Minutes/121803