08/26/08 Special Meeting - Laserfiche WebLink

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Commissioner Dehen stated that it feels like the HRA is being asked to adopt a levy without the type of general discussion that was held at the last work session on what can be trimmed in terms of services or people. He stated that he feels this discussion should be in the same context as the EDA discussion. He stated that approving this, without knowing what our priorities are, feels like the City is handcuffing itself to get to the 39% number. Chairperson Olson stated that this levy is compl~tely separate from the 39% levy amount and is not part of the general fund. She stated that she would like to address the earlier comments made by Commissioner Look that the City is having to spend money because builders made mistakes. She stated that she doesn't see this as bailing anyone out, but that the City has standards that need to be maintained. She stated that she doesn't want to see the City look blighted and while it will initially cost money, eventually the City will get this money back. Commissioner Look stated that he has never seen anyone on this Commission or on staff that has trouble finding money. He stated that this is a hypothetical situation and is a case of "needing the money, in case it is needed". He stated that the reality is that whenever the City needs money, there seems to be a way to find it. He stated that he feels the City is skating on thin ice because this levy is a tax and it will be put upon people who are already on razor's edge. He stated that if the City isn't careful, putting this tax on people who are already paying quite a bit in taxes and fuel costs, may create more foreclosures and then the City will end up having to levy more money. Commissioner Strommen stated that the annual cost to someone whose home is valued at $200,000 is only $26/year. She stated that she doesn't think this amount of money will send anyone over the edge. She stated that she feels the reality is that if the City doesn't do anything to help stabilize the foreclosures, everyone will have to pay for tax delinquent properties. She stated that she understands Commissioner Look's concerns, but she feels the levy amount per household is minimal compared to what it could be. She stated that she sees it as a minimal investment to shore things up. Motion by Commissioner Gamec, seconded by Commissioner Strommen, to adopt Resolution #HRA-08-08-004 authorizing the approval of the proposed 2009 HRA levy in the amount of $312,443. Further Discussion: Commissioner Look stated that he see the key word as "minimal" because he sees this as spitting on a forest fire because the City is just assuming that the levy will solve the problems. Commissioner Strommen stated that she was not saying that this will solve the situation, but it will help. Commissioner Look stated that he would propose that the City just let the market deal with the issue. Motion carried. V oting Yes: Chairperson Olson, Commissioners Gamec, Strommen, and Elvig. V oting No: Commissioners Dehen and Look. Absent: Commissioner Jeffrey. Case #2: Consider Acquisition of 16600 St. Francis Boulevard Housing and Redevelopment Authority / August 26, 2008 Page 4 of 10