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CASE # ADOPT RESOLUTION APPROVING PROPOSED 2011 HRA LEVY By: Diana Lund, Finance Director BACKGROUND: Each "taxing authority" must adopt a proposed budget for payable 2011 and certify its proposed property tax levy for payable 2011 to the County Auditor by September 15. ANALYSIS: On March 5, 2005 the City Council established a Housing and Redevelopment Authority (HRA). The bylaws state that the makeup of the HRA will be the Ramsey City Council. For Budget Year 2010, the HRA adopted a maximum levy of $410,124 (.0185% of total taxable market value of $2,216,886,700). For Year 2011, staff is again proposing a maximum levy of $368,549 (.0185% of total taxable market value of $1,992,157,400). A taxpayer home valued at $200,000 would be paying $37.00 towards the levy. The majority of the levy will be used for ongoing costs associated with the COR (Town Center) project area: marketing of the property and the development management contract. Annually, the levy has also been responsible for approximately $56,000 of maintenance costs related to the parking ramp maintenance agreement. Due to the costs associated with the COR project, the proposed levy will not meet the proposed expenditures. It is proposed that the HRA will need to draw from the prior year fund balance and/or cash generated from future land sales to meet expenses. At year end 2010, it is estimated that the fund balance of the HRA will be $640,000, at year end, 2011, the fund balance is estimated at $453,000. Unlike the General Fund levy, the HRA may adopt a final levy in September. The HRA has done this in the past. The 2011 HRA budget will be brought back for final adoption in December along with the 2010 Amended HRA Budget (housecleaning item to amend budgeted line items to actual) A proposed budget is attached for your review. STAFF RECOMMENDATION: Adopt a resolution approving the proposed 2011 HRA levy in the amount of $368,549. BOARD ACTION: Motion by Commissioner and seconded by Commissioner to adopt Resolution #HRA-10-08- authorizing the approval of the proposed 2011 HRA levy in the amount of $368,549.