##VIDEO ID:i80jGEWzv0g## e you guys ready it is 7 p.m. um so I will call to order the Richfield Housing and Redevelopment Authority meeting of August 19th 2024 um and then we'll start with the open form so each speaker to keep their comment period to three minutes to allow for sufficient time for others um comments are always an opportunity to address the HRA you can refer to the HRA agenda and minutes web page for additional ways to submit comments um there's no one here in front of us but you can always call into the open Forum by dialing 1415 6551 and use webinar access code 2631 553 469 with the password 1234 is anyone calling in no callers yet okay if anyone does always feel free to interrupt us um we will move on then to approval of the minutes of one the regular Housing and Redevelopment Authority meeting of June 17th 2024 and two the special Housing and Redevelopment Authority meeting of July 9th 2024 is there an approval of the minutes so move to approve the minutes is there a second second it is been moved and seconded any comments questions concerns all right all those in favor say I I I opposed the minutes have been approved we will start with item number one um the HRA budget presentation and I will send it over to executive director pman yes thank you chair V janiels and commission um Michelle if you would mind switching over to our presentation here great okay so uh today we're going to talk about the 2024 revised and 2025 uh proposed HRA budget as a reminder the mission of the HRA is to assist in keeping residential and Commercial areas of the city vital maintaining property values and serving the diverse housing and economic needs of homeowners renters and the business Community our areas of focus are listed on this slide but I always like to say that the remind the the H to a significant degree is really responsible for the growth the vitality and the competitive position of the city are we having um I found it trouble with our computers we're trying to find the switches sorry got it that's okay did we find them yes okay great um so again H is really responsible for the growth the vitality and competitive position of the community and the programs that are initiated and administered by the HRA are what helped to do that the city portion of uh the Community Development Department's budget which is approved by the city council is largely focused on regulatory items it's crafting and administering a regulatory framework like the zoning code administering the bill building code the HRA and the Eda portions of our work are about strategic investments in our community just a second okay there we go I'd like to start with the staff uh the H is staffed by the Community Development Department and pays at least 50% of the salaries of 10 of our 20 employees some of that staff time is reimbursed by Hud uh for instance for the administration of the housing Choice voucher or Section 8 program Additionally the H pays a small portion of the planning staff salaries as well as the city manager and finance staff who support our work so moving into the budgets the H budget varies significantly from year to year for several reasons and the fluctuations in these numbers can be easily misunderstood so I want to cover that first our work doesn't happen in a vacuum it happens alongside private investment and often opportunities present themselves that we weren't able to predict when we were putting together the future Year's budget increases often indicate that we've been able to utilize some of our pooled Tiff to invest uh in elsewhere in the community or that other funding sources or opportunities have Arisen also the budget reflects pass through funding things like Federal Section 8 and grant money the numbers in this chart are showing expenditures only um not revenues the revised uh proposal represents a 42% increase over adopted General admin expenses however are down in 2024 because of a staff vacancy I'll cover that more um on the following slide uh there's also been a shift in funds that influences the 2024 revised budget Woodlake Terrace utility work and home ownership grants have carried over and Rental housing support funds that weren't spent in 2023 have also been moved into the 20 24 revised budget for 2025 um or here let's cover 2024 um some of those major increases again are due to property Acquisitions like the purchase of 6525 pen Avenue the taxes and closing costs for the land that was donated to us at um 77 Highway 77 and Interstate 494 the former Metro Sales properties we had some increased maintenance cost for H owned properties uh some trees that needed to be taken down graffiti on some of those buildings and then deteriorating um exteriors that we needed to address and then as I just mentioned the shift in some of those funds that weren't spent in 2023 so for 20125 fending funding levels are anticipated at roughly the same amount instead of property purchases like you're seeing in the 2024 revised budget we're hoping for both Aster Commons and Penn Station to move forward so that we can contribute to the affordability of those projects uh and that would be about $1.2 million between the two projects so that that's why that funding level is staying up at that higher level there's also a significant increase in Personnel costs in 20125 and that's as we start to see the impacts of the comp and class study and increasing Insurance costs one thing I'll just forecast here is that Personnel costs are up almost 7% in the HRA they're actually up significantly higher in the Eda as we focus uh more of our work on the business Community to keep with um in keeping with the Strategic plan so just forecasting the next budget presentation I'll give so this is um a slide where I kind of like to break down into some larger simplified buckets um how the HRA where HRA money comes from and uh how we spend that money I think it helps to understand just the overall picture so the top half of the page is intended to show you where the money is coming from the first line taxes uh that's the amount collected through the levy obviously but last year we also included in that line money generated through the new uh 0.25 Metro sales tax for affordable housing also known as laa or local affordable housing aid that money is now shown in the intergovernmental revenues total it's considered state aid um so so that's why it's been moved into that line so so that's why you see the drop the money is still there it's just in a different line item intergovernmental revenues those are funds from other government units the majority is from HUD uh to fund the Section 8 program there's also cdbg grants and now like I said laa sales tax money um and just to mention the amount coming in from that sales tax is actually down from what the state had projected for 2024 instead of the 453,000 um that they were initially projecting for us we're getting approximately 230,000 so that that lower amount is showing up in in govern intergovernmental revenues um this was only a partial year collection for that sales tax so in 2025 we've bumped that number back up closer to the initial projection and are um estimating $400,000 for miscellaneous revenues those are things like loan repayments land sales investment earnings and also the value of new assets on our books so the significant increase here is the um donated land at 1620 and 1640 78th Street you'll remember that that property was valued at about $4.2 million and so that isn't technically Revenue coming in but it's an asset held for resale now by the HRA and so that shows up as um as funding for for us in this line item transfers that's money that's being brought in from other funds like tax increment coming into the Housing and Redevelopment fund from contributing distri uh districts it's also HRA general fund transfers to fund programs um in different areas of the budget so it's not necessarily new money but sometimes it's money coming out of a fund that we were holding um and now we're we're finally programming so so um in 2024 you see a large increase as we recoup the overpayment dollars that had gone to Best Buy and that's been completed now we've recouped that entire amount and in 2025 we're budgeting for a large transfer from the temporary spending plan to the special legislation affordable housing uh pot of money for those affordable projects on Portland and Pen Avenue so moving on to the um chart at the bottom of the slide this is again what the H spends money on Personnel this uh line item is strictly staff costs um and while they are slightly down in 2024 as I mentioned there's a significant increase in 2025 as compan class comes on Administration those are things like rent the rent we pay uh for building costs um Insurance equipment it's also professional development costs for staff and then programs that's a large bucket just to show you that this is the money that we are taking and programming out into the community this is the money that we're taking and doing um the good work that you have charged us with chair could I ask a question um on the last slide um my question you know we've heard about the I think 10% that the H can charge for administering the Tiff districts where does that show up is that taxes or is that miscellaneous Revenue that actually I I'd have to look back that is not going to show up we're going to that's a great question and I'll have to go back and look and get you that answer okay just general question which also you know it's fine if you have to get back to me I was curious in general the the split of personnel costs between the city and the H um is there like is that just kind of individually negotiated within Richfield and this is the way we decide to do it or is there like a rule that like your hours per week need to be directly compensated I'm just wondering because of this reduction in Tiff in the future is it possible to Simply shift some of those staff costs to the city side of it and property taxes or does it have to be because you're spending you Melissa spend 18 hours a week on H items that that portion of your salary must come from the h yeah that's a great question no it's individually decided by the cities okay um in terms of the Tiff Administration funds that can only be used for things that are actually related to Tiff Administration so we do want to keep track of uh H staff hours in that way to make sure that we're uh utilizing funds that are coming in through those Tiff districts but in terms of the rest of our uh funding of Staff it could be entirely funded by the city which it is in some cities um or entirely funded by the HRA that's a city Choice um and because of those Tiff districts that are looking to roll off in the next couple of years and a decrease in the admin dollar it's a conversation that we're having with the city manager and the finance director regularly to make sure uh we know um what we're projecting for the future right now uh we're actually projecting that our uh the Tiff districts that will remain will be enough to continue to fund the HRA at these levels uh but the city is planning uh in the event that that doesn't happen to hold some money to cover H staff costs okay thanks and and um I processed a little bit and the Tiff admin money that you're discussing the 10% is going to show up um in the taxes just like it is um that's just like the Housing and Redevelopment fund money it is pulled out afterward okay so moving on to the levy uh this is a history of the amount that the the H has levied over time uh since since um 20 19 um we have not maximized the levy we used to um that hasn't been our recommendation for the last several years um you might wonder why this with the significant new funding coming in from these different sources like laa and the uh the the sales tax money and the bring it home program that I'll talk about in a little bit why we would need to increase the levy at all um and while the legislature has approved significant money for programs they have not necessarily approved money for the administration of those programs and so as the H tries to take on that additional work and program those funds sometimes we are ending up um sending out programs to be administered by others for instance CE is administering um some additional loan programs for us now to free up staff time that's actually a little bit more expensive so we're continuing to to increase the levy to make sure that we can continue uh to fund all of those programs thank you for including the average impact back to the homeowner um is that uh an increase or is that the average total thank you that is the increase yes so that is the increase that the average homeowner would see in 2025 um it would be $1.38 for the year um the the levy that we are proposing the levy increase is a 3% Levy increase um and the that is well below the maximum allowed uh the levy would be sorry turned my page $720,000 uh the maximum is 936 sure is the max Lev be determined by like our tax base or is that based on our previous like does us not maxing out prevent us from maximizing in a future year or is what is the max L based on I guess sure there's a formula that's set by the state uh it's a percentage of your net tax Capac capacity okay um and so that's calculated each year after values come in from the county okay so other than the fact that we are not taking in the maximum theoretical money this year we're not limiting ourselves to go to the max in the future year if that's correct okay so covering um highlights of our work from 2024 thus far um and talking about some of the factors that are playing into that revised budget uh for 24 and 25 um with the retirement of our housing specialist Brian derer at the end of 2023 that left us with a vacancy for the part first part of 2024 but Hillary LEL has filled that and we are back to full strength so that's exciting uh Section 8 staff has been Rec recognized for exceptional administration of the housing Choice voucher program by Hud very exciting for us we always knew they were wonderful but it's great to have HUD recognize that too uh first our first time home buyers program continued to utilize um our first- time home Buy buyers continued to utilize our first-time home buyer program typically the HRA issues 10 to 11 loans annually in 20124 11 loans were issued by the end of June so additional funding in the revised budget will provide for five to six more loans this year uh through uh then we've got the duplex demonstration projects and um through our revised guidelines our zoning guidelines we're now working to develop a duplex or maybe even two two on H lats this is demonstrating how our zoning code uh can work in the community those new zoning allowances those projects are proving to be very challenging financially um and we are budgeting for the possibility of additional assistance that we might need to help those projects along that would be one instance where we could potentially use those spending plan dollars that were identified a couple of years ago um ongoing work to evaluate our current hous programs is happening in 2022 and 23 we made modest changes to Richfield rediscovered and transformation programs and this year we're proposing some changes to our down payment assistance program to make sure that we're addressing the largest needs uh the HRA will consider those later tonight but then later this year we're planning to bring a more holistic look at our programs for consideration by the H to make sure that we are meeting the needs identified by the Strategic plan um in in the best way that we can we purchased 6525 pen to assemble with our property at 651 pen and we're now working with an affordable housing developer for plans for that site through a donation we acquired another property along 494 and have assembled a very nice uh Redevelopment parcel there and our first laa sales tax money has started to come in again that's about $230,000 for this year one question yes so um um first of all kudos to the Section 8 staff and that reminded me um in years past sometimes it costs us more to administer the program than we are being reimbursed from the federal government and I noticed that it said we are getting better reimbursements but there was still a deficit is that just from a few years back and we haven't made it up yet or how do we get that fund Back in Balance right so HUD has done a better job of um increasing our Administration costs anday paying for those um last year they um they did reimburse us it did look like a deficit in our budget because they were reimbursement comes after the um end of the year but they did reimburse us for those costs this year in the budget um we planned for a deficit we planned that the H general fund would have to subsidize the administration of that program a little bit but we do anticipate HUD coming in um with additional admin funds so we will not actually have to make that transfer from the general fund so we've planned for it uh but our hope is that we wouldn't need to um subsidize that program I think it's roughly $30,000 that's good news I'm glad that they're keeping up with things okay so um moving back to some highlights we're continuing to work on Aster Commons 10166 Street and the Lindale Gardens site um training we've done a lot of St staff training for hotma and Inspire V regulatory changes those are related to Section 8 um it's some significant upgrades uh to the way that the program is administered and the way that inspections happen um hotma if you are curious stands for housing opportunities through Modern modernization act and Inspire V is national standards for the physical inspection of real estate and it's for the voucher program which is the V uh additional funding in 2024 for our fixup fund uh there's been a lot of additional interest in our reduced interest rate fix up loans because rates have been so much higher funds were used up early in 2024 so our revised budget uh adds additional funds for four to five more loans this year and in 2025 we're proposing a budget of 40,000 for that program up from 25 um so TR again trying to meet our families um and residents where they're at and that where the needs are the most um most dire at this time and then um it's exciting finally to have some loan repayments coming in that can be recycled into the community so in 2024 and 25 we're using cash reserves to fund our housing rehab programs taking some pressure off of that general fund um and the levy so we always cover our new work and our new goals but I want to remind everyone of the other kind of businesses as usual work that continues alongside all of those new initiatives training I mentioned that we had been fully staffed for most of the year but as you have heard from me before the city has a lot of newer staff our housing specialist position has turned over twice um Kate ichon moved upstairs and uh now Brian has retired so this is a very specialized position that involves a lot of training and I'll say the same for the finance team the work of the HRA is very complex and there is a lot of time that is dedicated to making sure that our finance team understands um all of the special rules that apply to HRA funds also continuing to provide rent assistance uh to approximately 325 households that's through our Section 8 and kids at home program kids at home technically is our Eda uh continuing to administer our single Family Programs first-time home buyer new home and Richfield rediscovered plus managing and extensive loan portfolio we plan organize and run the annual remodeled home tour we're continuing to provide funding for a variety of popular Technical and financial remodeling Assistance programs like the home energy Squad enhanced program the architectural consultation program ce's remodeling advisor and ce's fixup fund Home Improvement loans and then finally administering our 13 active tax increment districts so looking ahead into 2025 uh we'll have a continued focus on training for our new employees and working with the finance department we spent this year our Section 8 uh staff spent this year training and we will spend next year implementing those new HUD regulations this year we are evaluating our programs next year we will be implementing any changes that the HRA um directs we're focusing on Outreach making sure that our housing programs are reaching our underserved uh communities and that those programs are accessible in 20124 Minnesota housing is trying to figure out uh what the rules are going to be for the state Housing Voucher Program that's the bring it home program that is listed in your budget document next year we'll be looking to apply for our portion of those funds and um get our own program up and running under those new rules we're looking to evaluate and Market our HRA owned properties that's in keeping with the um direction of the Strategic plan continuing to work with Beacon and Jo companies to hopefully get some new and deeply affordable units in the community we've adopted a spending plan for our pool Tiff so now we're working to find projects that meet those goals the high interest rates uh continue to make things challenging but we have a number of irons in the fire right now so hopefully we'll have some uh development and small business opportunities where we can get that money out into the community so just a little bit of a summary looking ahead a lot of opportunities astromons Penn Station 77th Street some really exciting um development opportunities and sites to work on there continue to be development challenges however in increased construction and financing costs uh continue to have the development Market be pretty slow uh interest rates are starting to come down and so hopefully that will ease things up but there continue to be Bank financing challenges there are a lot of new funding sources which is exciting but the challenges to development can make it harder to get that money actually out the door if projects aren't able to pencil out even with our assistance and then um capacity issues you know there continue to be labor market challenges um across all Industries but really across the ENT entire spectrum of our work as the HRA um there are challenges in Housing and Redevelopment in finance in construction it goes all the way down to property management and maintenance so all of our partner organizations are having capacity challenges um and that makes it just that that much more difficult for us um to get our work done and that's it um I'm happy to answer any questions you might have anybody have any questions wow um I have one question yes um the fund balance seems to hover around three million is that generally where we want it to be is that a you know I think the state guidelines is about 50% of your expenditures which that seems a little but maybe it's just the buckets that I'm not quite yeah so we have talked um we've talked with the finance department we've reached out to our financial um advisers to talk about whether or not that rule of th thumb which I believe is about 40% for the city um of general fund expenditures is also applicable to the HRA there isn't really a rule of thumb for the HRA um and uh like I said our expenditures can vary so significantly um that it it just becomes more of a challenge we do exceed um that 40% for general fund expenditures we do um meet that rule of thumb have there been projects that we didn't feel like we could fund because we didn't have the money to do them or do we feel like we are able to take all the opportunities that we good opportunities that we have given the fund balance and kind of everything we we have yeah that's a great question I think philosophically um things have maybe shifted a little bit at the city and with the HRA historically the HRA has been fairly conservative and so we have built up some significant uh fund balances that I think now are allowing us to take advantage of opportunities that we wouldn't have been able to in the past um whether or not the wants to continue to be a little bit more aggressive with those opportunities is something that you'll have to consider as those opportunities arise I had a bunch of questions and your packets answered all of them so the additional supplement to packet as well as this so fantastic thank you yeah go ahead so you I I just want to hear a little more about the plan for as the Tiff districts decertify so you're seeing it looks like it's we're going to be able to cover it and we're not going to have to cut programming is that accurate sure so um the money that comes in through the Tiff districts both can fund uh staff time a certain amount can fund staff time and then a certain amount can go into our Housing and Redevelopment fund which can be used um to purchase blighted Properties or help with rede um housing needs throughout the community so I think the funding challenge that we were anticipating was that as some of these larger Tiff districts decertify we were going to have a shortage of administrative funds to administer the programs not necessarily fund the programming itself but again pay for the staff time uh to do that some of these newer diff Tiff districts um are generating more income increment than we expected uh values as you know in the last few years have been significantly higher um than we initially had projected for some of those districts and so as of right now it looks to me like we are in a good position to be able to continue to fund staff at the levels we are through uh the HRA rather than asking the city to chip in more thank you that's good to know John uh thank you for the very detailed presentation and the answers to the questions earlier in the email to me I had a lot of questions when I reviewed this it's my first time going through the budget process so it it uh it was all a little foreign to me so I appreciate the details thank you you're welcome last call or questions okay so that takes us to item number two pro the agenda Pro of the agenda we started half hour ago uh so there's a motion for approval is there a second second uh the agenda has been um moved and seconded any questions comments concerns can I I've made this on the city council side it seems very weird to me that we don't put presentations after approval of the agenda because in theory what if the board wanted to move the presentation I don't know that's just a they're always laid out like this but I just find that bizarre always anyway yeah agree but as for this agenda it's fine yeah so as it pops up it feels very awkward as we get to approval so um next time maybe we'll look at our bylaws and see how that gets laid I think it's just the software that I use but I don't know um all those in favor say I I opposed the agenda is approved it takes us to item number three the consent calendar and I'll hand it over to executive director pman yes thank you the consent calendar contains several items again tonight only one single item which are acted upon by the HRA and one motion once the consent calendar has been approved the individual items and recommended actions have also been approved no further H action on these items is necessary however the H commissioner any H commissioner May request that an item be removed from the consent calendar and placed on the regular agenda for H discussion uh tonight letter a item a on your agenda consent calendar is consideration of the approval of revisions to the firsttime home buyer program guidelines that concludes tonight's consent calendar is there a motion for approval so moved is there a second second it has been moved and seconded and since there's the consent calendar there's no need for discussion unless somebody wants to move it right all those in favor say I I opposed the consent calendar is approved all right that takes us to item number five which is to consider the resolution approving the proposed 2025 proposed housing re Authority budget and tax levy um anything to add no um I'll just note here that it like I mentioned it's a 3% uh proposed Levy increase for 2025 and that impact um to the average homeowner in Richfield would be um approximately a dollar sorry 38 per year and um I know this is near but I think it's worth saying like this is the max amount if we decide we want to lower it we can do so in two months that is correct this sets the maximum amount this amount will be certified uh with the state the HRA could lower it at any time but could not raise it for 2025 all right is there a motion to approve the resolution I'll move to adopt the attached resolutions approving the 2025 proposed Housing and Redevelopment Authority budget and tax tax lby and the 2024 revised Housing and Redevelopment Authority budget second it has been moved and seconded any last comments questions concerns yes go ahead I just wanted to say thank you for all the detailed explanations and the patience because I know I peppered you with a lot of questions and it sounds like others did as well so thank you happy to help all right it has been moved and seconded all those in favor say I I I opposed it is been approved excellent um that takes us to item number six H discussion items is there any H discussion items I do have a question um are we planning on doing the um Redevelopment tour again that we did October 5th last year uh richel rediscovered uh yes the home tour yes thank yes and um it is October 5th or 6th I'm sorry I will get that information out to you um I'll make sure I have that date it's one of the two um let me see the 5ifth is the Saturday I believe um just encourage my fellow MERS to sign up and help volunteer it's really great to be able to hear and talk to people and and help out with that so highly recommend um all right if there's nothing else item number seven the executive director's reports thank you I just wanted to make sure that the H um had in been introduced to our new city clerk Michelle Friedrich uh this is Michelle's first HRA official HRA meeting uh and so I wanted to point that out and welcome Michelle uh she's been a great addition and we're very happy to have her thank you welcome nice to meet you welcome all right and that's all excellent that takes us to item number eight claims um is there a motion to approve claims so moved second it's been moved and seconded any comments questions conern seeing none all those in favor say I I opposed claims have been approved that takes us to adjournment thanks everyone feeling good about rolling right over to the Eda okay it is 7:36 um I will call the meeting of the economic velopment Authority meeting of the city of Richfield of August 19th 2024 um we'll start with the open Forum so as always each speaker is to keep their comment period to three minutes to allow sufficient time for others comments can be an opportunity to address the Eda you can refer to the Eda agenda and minutes web page for additional ways to submit comments you may also call 612 861 9764 or email elub Richfield mn.gov with questions you can can call into the open Forum by dialing 4156550001 using webinar access code 2631 553 469 with the password of 1234 anybody calling in we have no callers okay um that takes us to um the approval of the minutes of the regular Economic Development Authority meeting of April 15th 2024 is there a motion for approval so moved is there a second I'll second has been moved and seconded any comments changes right all those in favor say I I opposed the meeting minutes have been approved we will start with item number one the Eda budget presentation thank you president freze Daniels and Michelle if you could switch over to our presentation great thank you so now we're going to present the 2024 revised and 2025 proposed Economic Development uh Association budget the mission of the Eda is to fund beneficial economic development business assistance and housing assistance programming the Eda was formed in 2018 uh to fund programs related to those things there are a few few well-established programs funded by the Eda kids at home and transformation loan also our apartment remodeling program but based on priorities identified by the council we've been working to build out a more robust offering of business assistance programming as well historically the Eda did not have a dedicated staff but was instead facilitated by help from several people spending small portions of their time on this work that changed sign significantly in 2023 when we added the economic development manager position and it's continued to evolve as we work to meet the initiatives of the Strategic plan specifically focusing on a diversified tax base through business growth and a vital and exciting downtown as more time is focused on those efforts more staff time is also funded by the Eda and you'll see that in the proposed budget so similar to the H the Eda budget can fluctuate significantly based on opportunity in the community and the market and you'll see some of that in both the revised and proposed budgets for 2024 revised uh there's an increase of 17.6% that's primarily program funding 85,000 of that is an increase in the apartment remodeling Loan program 38,000 of that 85,000 is uh 2023 loans that have carried over and 45,000 for additional loans because we have additional interested owners and have run out of money in the program and we have found that the best way to maintain a program is to continuously have the funding available when you identify um interested owners owners who are interested in participating uh you will you will recall that we've turned that program over to CE for administration so there are administrative fees associated with that in 2024 uh there'll be approximately $4,000 and then a little less in 2025 um once the program has been EST established it's a little bit less to administer so about uh 2300 in 2025 there's also $2,000 in both the revised and proposed budgets for the new Sac assistance program we're currently working toward our first possible Award of that assistance um with a new business over in the Lin view for 2025 there's a 7.7% increase over the 2024 adapted budget but a drop from 2024 um but a drop in 2025 proposed program funding is maintained at 2024 levels and continues to include $60,000 in small business assistance for a program that we're working on now and uh there are significant increases in staff costs uh as we prioritize Economic Development work and more staff time is shifted to Eda there's also $5,000 in matching funds included in this budget um that's for a branding grant that we're hoping to receive uh from hennipen County it's a a business business district initiative Grant from hennipen County for up to $50,000 um and that would help with branding in the downtown and we'd like to to take that step um in 2025 the 2025 maximum Levy is about 917 9918 uh, our proposed Levy increase uh is 4% or a $623,000 levy the impact to the average homeowner in 2025 would be approximately $158 sureff I'm just curious the grant you mentioned pan County very excited that we're doing this of course but I was just curious what the ratio like is is 5,000 only enough to receive 5,000 for 10,000 total or is it like a one like it's not a one to one match that we need to provide I assume yeah that's a great question and we'd have to ask our economic development manager Jan uh youngquist for the details on that um I believe we put some funds in there just to say that we had a match I I'm not sure that there's a percentage that's required okay I guess I just wouldn't want us to to limit the amount of R we can get it because we only have 5,000 for our match right yeah okay so similar to the H um I I've got these this breakdown of funding sources and expenditures for the Eda taxes again this is the amount collected by the levy the 4% Levy increas is reflected in the proposed column miscellaneous revenues here are loan repayments application fees investment earnings uh there's a significant increase for 2025 um and that investment earning um that's investment earnings and finance recommended that we significantly bump that up to more accurately reflect what we've actually been making on our accounts uh and they recommended just making that change for 2025 on the bottom half of this slide um is what the the Eda is spending money on staff you can see what that 133% increase looks like you know the H budget is fairly small still so the um that's an increase a 133% increase is about $118,000 admin here that includes Professional Services like administering the loans uh with CE office supplies and professional development things like rent uh property insurance those are picked up by the HRA so you don't see those expenses on the Ed side programming again that's everything else that's the money that we are programming and putting directly out into the community so you'll see in 2024 and 2025 our expenditures are exceeding our revenues this is indicating that the money we've been accumulating over these past years is starting to be spent and programmed into the community and that was always our intent to build up a fund that we could then um make grants and loans that would be um of a reasonable amount to business owners um and homeowners additionally I want to remind the group that we have the money in the temporary spending plan that could potentially be used for some of our business assistance programming and we're looking to that money first so although this budget looks like we're spending down fund balances we might not need to do that we might be able to tap our spending um our temporary spending plan um in 2023 we had also budgeted to spend into that fund balance but because some of those apartment remodeling loans have spilled over into 2024 we didn't actually do that so some of these things that we're projecting you know it's a budget we're gu we're making some guesses um but we do have the fund balances to cover all of the expenditures that we've proposed and that's why I wouldn't recommend any higher um Levy amount than we than the 4% so 24 2024 highlights um what we've been working on here what were um some factors playing into the budget again um our new Sac assistance program as a reminder a SAC Credit is a sewer access charge uh that almost any new business coming into Richfield is going to need to pay um one sack credit is about $2500 and most new business business are going to need several so our Sac assistance program is helping new and expanding businesses um with that um cost of of growth uh we've taken an inventory of existing downtown businesses to try and evaluate some gaps that's helping us um to Target our um our talks with potential businesses and who we'd like to see in our downtown and then uh we'll be applying for those Grant funds to initiate the branding strategy for downtown and that's going to lead into additional work on the planning side um in terms of potentially an overlay district and a small area plan um in advance of our comprehensive plan which is is just a couple of years down the road a couple of program notes some takeaways the kids at home program continues to be a strong and successful program we're continuing to look for ways to connect with families in the Richfield schools to make sure that they know about this uh program so working to make some connections with social workers and other folks over there at the schools continued high demand for our transformation Home Loan program that program is part of our overall housing program evaluation uh that we're hoping to have completed Again by the end of this year anecdotally we have noticed that Adu Builders aren't necessarily um hearing about about this program so one of the conversations that we're having is how how we're marketing that and if we need to um perhaps create um specific marketing documents related to adus and and this program uh our apartment remodeling program provides funding for the rehab of existing affordable rental units we're having more success in fully utilizing those funds now which is great as I noted we're proposing an increase for this year to make sure that we have funds available for some owners that we're in conversations with our energy efficient business grant has been very successful we are starting to see a little downturn as most businesses have now been able to take advantage of that program so we've we've left the funding constant for 2025 but we're tracking that and we may reallocate a portion of that money in coming years business development in 2024 again we La we launched that sewer Act access um charge program the market has been particularly tough for new businesses uh but as interest rates ease up we're hoping to offer this to more folks and then Elevate henpen continues to be a great partner they're providing many resources for new and growing businesses at no to low cost um and our contribution to that remains $5,000 annually and that's it for Eda happy to answer any questions about this proposal so I I don't have um a question I just have a comment it's been really great to see the economic development and how all that part of the Strategic plan how it's coming into fruition and seeing all the different things that are happening so thank you and to the staff for that else any other questions right seeing none thank you um that takes us to item number two approval of the agenda is there a motion for approval so moved second it has been moved and seconded any other comments okay um all those in favor say I I I I post the agenda is approved um item number two consent calendar um executive director yes thank you the consent calendar contains several separate items which are acted upon by the Eda and one motion once the consent calendar has been approved the individual items and recommended actions have also been approved no further action on these items is necessary uh tonight there is one item on the consent calendar for your consideration it is consideration of an amended agreement with the Center for Energy and environment also known as CE to increase the budget for the apartment remodeling program and that concludes tonight's consent calendar is there a motion to approve the consent calendar is anyone like something removed make a motion to approve the consent calendar second second all those in favor say I I I opposed consent calendar has been approved taking us to item number five considering a resolution to approve the proposed property tax levy is there NOP go ahead executive director coming anything you want to add nope I will just remind you that um at a 4% increased Levy that would be an impact of $158 for the average homeowner in 2025 and as we stated with the HRA this is a maximum Levy amount the HRA could lower it from here uh later in the year but could not raise the the Eda Levy is there a motion any discussions I'll move to adopt the attached resolutions approving the 2025 proposed Economic Development Authority budget and tax levy and the 2024 revised Economic Development Authority budget is there a second I'll second that all right it has been moved and seconded any comments questions concerns right seeing none all those in favor say I I I opposed the motion passes that takes us to item number six Eda discussion items any Eda discussion items all right seeing none item number seven an executive director's report I will confirm that the uh remodeled home tour is on Saturday October 5th thank you so much um then that takes us to item number eight claims is there a motion to approve claims I'll make a motion to approve claims is there a second second it has been moved and seconded any comments questions concerns seeing none all those in favor say I I I opposed claims have been approved that takes us to adjournment thank you everyone