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HRA Regular Session <br />Date: 04/12/2011 <br />By: Heidi Nelson <br />Administrative Services <br />Information <br />Title: <br />Review 2011 and Projected 2012 HRA Budget <br />Item #: 6. 3. <br />Background: <br />As a part of the review of HRA expenditures and the review of the Development Management contract, there was a <br />request to review the current HRA budget and the projected budget for 2012. <br />Staff has prepared a revised 2011 budget that reflects the following changes: <br />Reduction in expenses: <br />A portion of the Planning Manager salary was budgeted from the HRA, the elimination of this position has resulted <br />in a savings of $19,971 for 2011. <br />Increase in revenues: <br />With the amendment to the TOTI purchase agreement, there will be a distribution of $50,000 to the HRA in earnest <br />monies. <br />This will help to offset the payment of incentive advance for 2011. <br />Increase in expenses: <br />The 2011 HRA budgeted reflected a full year of the DM Contract Admin fee, but only Jan -March of Incentive <br />advance. Thus, additional revenue will be required to offset the contract obligation to pay the incentive advance for <br />the first year of the new contract. Closings that are anticipated in the 2nd and 3rd quarters of 2011 will offset the <br />advance payments in 2011. <br />Projected Reductions for 2012 budget: <br />Reduce Marketing 6246 to 33,000 (2010 budget -53,000) <br />Reduce Legal 6304 to 25,000 (2010 budget - 30,000) <br />Reduce Travel 6331 to 15,000 (2010 budget - 20,000) <br />With the closings projected for 2011, there will most likely not be a need to budget for advance incentive for the <br />first quarter of 2012. <br />Budget spreadsheets for both 2011 and 2012 are attached for HRA review. <br />Recommendation: <br />