HRA Minutes 07-08-1997
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, July 8, 1997.4:00 p.m.
City Ball
MEMBERS PRESENT:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Bob
Murray, and Dan Frie.
COUNCIL LIAISON ABSENT:
Roger Carlson.
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
GUEST:
Mark Ruff, Ehlers and Associates, Inc.
1 . Call to order.
Chair Barger called the rescheduled HRA meeting to order at 4:00 p.m. This meeting
rescheduled from July 2, 1997, due to the July 1 storm.
2. Consideration to approve the June 4, 1997 lIRA minutes.
Brad Barger made a motion to approve the June 4, 1997 HRA minutes. Seconded by Dan
Frie and with no additions or corrections, the minutes were approved as written.
3. Consideration to addinB items to the a~enda.
No items added to the agenda.
4. Consideration to review HRA financial reports for preparation of 1998 BRA budBet.
Mark Ruff, Ehlers & Associates, stated year-ending 1996, Monticello had created 21 TIF
Districts ofwhich 4 have decertified and another 4 districts will decertify over the next
few years. Most ofthe districts were economic districts. Working with Wolfsteller and
Koropchak to meet the new State standards and reporting requirements, the budgets will
need modifications in the future to reflect the adjustments.
The property tax classifications rates for commercial industrial decreased which causes a
drop in tax increment and raises the tax rate. A benefit to Monticello, the older
redevelopment districts are not subject to a frozen tax rate. Little change is assumed for
Monticello. The City is subject to levy limit along with the waste water treatment plant
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JULY 8, 1997
coming on board. An HRA levy does not compete with the city levy and could produce a
maximum of approximately $65,000 of non-restrictive funds for redevelopment of the
downtown or development of industrial land. The levy appears as a line -item on the tax
statement but requires no truth and taxation hearing.
The HRA General Fund (non-restrictive) has a balance of $100,000 with annual revenues
of $50,000 to $60,000 expected from bond proceeds. Over the next five/six years, the
HACA Penalty is estimated at $50,000 to $55,000 annually. No expenditures were
accounted for.
The current balance of the TIF Surplus Fund (restrictive) is $110,000 taking into account
the $50,000 Debt Service Reserve Fund. The combined year-end 1996 HRA/TIF Reserve
balances were $200,0004250,000. Year-end 1997 balances are estimated $123,000 for
the HRA and $143,000 for the TIF. In the future with the anticipated HACA Penalty a
cash surplus of $150,000 to $170,000 is estimated.
HRA options:
1. Decertify districts upon meeting obligations.
2. Use for other projects such as reserves for future debt.
3. City do project - issue bonds from revenues for projects such as Front Street
acquisition.
4. Consideration to decertify economic districts as only 25% less 10% administration
of the increment can be spend outside the district.
Compared to other HRAs, Monticello's total dollars is small potatoes; however, the
performance of the number of districts is greater. The captured value is the test which is
$600,0004700,000 of 16 million. Mark informed HRA members that 85% of the
property tax comes from commercial/industrial and of that 70% in from one utility. If the
value of the utility is decreased, other funding will increase. Monticello's tax rate is about
20-25% lower than most cities.
Steve Andrews made a motion to accept the HRA financial report as presented by Ehlers
& Associates. Brad Barger seconded the motion and with no further discussion, the
motion passed unanimously.
5. Consideration to adopt a resolution amending the HRA Bylaws.
The following changes were recommended for the proposed bylaws: Page 2, OFFICERS,
Section 1. - Delete: officers shall be elected from among the commissioners and add: the
chair and vice chair shall be elected from among the commissioners and the secretary -
treasurer appointed by the commissioners. Section 3. - Add: If in the event a quorum is
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HRA MINUTES
JULY 8, 1997
present and the chair and vice chair are absent or unable to attend, the three remaining
members shall elect a chair for the said meeting. Page 3, EXECUTIVE DIRECTOR -
Delete the word "his" from (or "his" designee). Page 4, Change the word "determined" to
"approved". The compensation of the Executive Director shall be approved by the Board
of Commissioners. MEETINGS, Section 1., Annual meeting - Insert "April". Section 2.,
Regular meetings and Section 3, Special meetings - Insert "working" to at least three (3)
"working" days. Page 5, ORDER OF BUSINESS, Section 1. - adjust the order of
business for consistency with the current HRA agenda format. Bob Murray made a
motion to modify the proposed bylaws as recommended. Dan Frie seconded the motion
and with no further discussion, the motion passed unanimously.
With the modification to the proposed bylaws, Steve Andrews made a motion to adopt the
resolution amending the HRA Bylaws. Brad Barger seconded the motion and with no
further discussion, the motion passed unanimously. The amended bylaws to be distributed
the Council members.
6. Consideration to adopt the Downtown and Riverfront Revitalization Plan for submittal to
the Planning Commission.
In lieu of the storm and the Planning Commission not calling for the public hearing, Brad
Barger made a motion to table any action relating to this agenda item until the August
HRA meeting. Bob Murray seconded the motion and with no further discussion, the
motion passed unanimously. Some concern was raised relating to how the Design
Guidelines would be enforced.
7. Consideration of legal opinion relating to removal or demolition of theag_ra,ge and shed
located at 220 Front Street and authorization thereof.
HRA members felt it was unwise to fix -up a neighborhood that one's attempting to
purchase. Unless other real danger prevails, Dan Frie made a motion authorizing the
Building Department to remove the LP tank only as the tank poses a safety issue. Darrin
Lahr seconded the motion and with no further discussion, the motion passed unanimously.
Consideration to authorize payment of monthly bills.
Brad Barger made a motion to authorize payment of the HRA monthly bills. Seconded by
Dan Frie and with no further discussion, the motion passed unanimously.
9. Consideration of project updates.
HRA members accepted the written report.
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JULY 8, 1997
In lieu of the storm, Damn Lahr made a motion requesting a letter be drafted to Larry
Schleif inquiring of the interest to present a purchase price without repairs to the HRA for
the property located at 3 Walnut Street. Dan Prie seconded the motion and with no
further discussion, the motion passed unanimously.
10. Other Business.
None.
11.
Adjournment.
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Dan Frie made a motion to adjourn the HRA meeting. Darrin Lahr seconded the motion
and with no further business, the HRA meeting adjourned at 7 :00 p.m.
Q) ~~ \(n~S)~
Ollie Koropchak, Executive Director
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