Minutes - Council Work Session - 06/11/2013

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used. Currently, Ramsey is a member of the Anoka County HRA so the County can help with housing and limited redevelopment but not much with actual businesses. Should the City decide to opt into the Anoka County HRA for a project, it would be for a five -year term and after that, the City can decide if it wants to opt out. Ms. Skepper stated Ramsey has a large fund balance, the largest when compared to other Anoka County communities. She explained that to assure it is the desire of the City Council, it would have to make the request via resolution and indicate the dollar amount. Ms. Skepper described the types of projects that the Anoka County HRA currently funds and stated they have also been asked to provide a revolving fund program. She stated the intent was to serve only member communities but they found there were great businesses in communities that were not members so they decided to use their general funds to provide assistance to those businesses. Ms. Skepper stated Anoka County has now been authorized to hold the program for a second year on a more regional basis. Councilmember Riley stated it sounds like a great program but it has been turned down before. He asked why people would turn this down. Ms. Skepper stated she has wondered why some council members have not supported opting in as it does not increase a levy on the City's residents and creates economic development. Councilmember Backous stated the resolution would last five years and asked if it automatically renews. Ms. Skepper confirmed the City would have to take action to opt -out after five years. She stated they just completed five years and all cities remained and did not opt out. Councilmember Backous asked if Ramsey opted out. Ms. Skepper explained the HRA is a different body from the EDA. Anoka County chose to have an HRA with economic development powers and Ramsey is a member of that HRA so as long as there is debt service on Savannah Oaks, Ramsey does not have the ability to opt out. Councilmember Backous asked if Ramsey's funds would be available in a revolving loan fund. Ms. Skepper explained that would be at the decision of Ramsey but it has been the practice of Anoka County to create a fund for all dollars levied in each city and allow the use of those funds at the direction of that City Council. She stated CDBG funds may be used to start an Anoka County revolving loan fund program. Councilmember Tossey asked if Ramsey opts in for economic development, can Ramsey simultaneously use the HRA or only economic development as a source of the funds. Ms. Skepper explained that by adding economic development activities, Ramsey can then use almost $1 million for housing, redevelopment, or economic development at the decision of the Ramsey City Council. City Council Work Session / June 11, 2013 Page 2 of 9