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CR 96-94 Residency Incentive - Hopkins PoliceProposed Action Overview May 17, 1996 ti 0 P K RESIDENCY INCENTIVE-- HOPKINS POLICE Council Report 96 -94 No action is necessary on this item. Council is being informed of this action per Section III 15.03 of the Hopkins City Code. This item is being presented for the Council's review and possible discussion. For some time, the Hopkins City Council has discussed a potential incentive for Hopkins po- lice officers as a way of bolstering the City's community oriented policing efforts, and also to encourage residency by police officers in the City of Hopkins. At a recent work session the Council discussed various options for providing incentives to po- lice officers and asked the staff to prepare a report for Council consideration which would pro- vide an economic incentive for Hopkins police officers to purchase homes and reside within the City of Hopkins. • Based upon that direction, I am recommending adoption of the proposed policy. Primary Issues to Consider o What is the proposed policy language? o How would the incentive be implemented? o Who would be eligible for the incentive program? o What other incentive options were considered? Supporting Information Steven C. Mielke, City Manager • • Council Report 96 -94 Page 2 Primary Issues to Consider What is the proposed policy language? 8.15 Residency Incentive -- Police Officers Sworn officers of the Hopkins Police Department are eligible to receive a residency in- centive loan of up to $10,000 under the following conditions: 1. The employee must purchase a residence and reside in the City of Hopkins to be- come and remain eligible for the incentive. 2. The loan proceeds can be used for any purpose connected with the acquisition of, or relocation to, a residence in Hopkins. 3. The loan will be forgivable over a ten year period, at $1,000 per calendar year. 4. The loan will carry no interest accumulation. 5. If the employee separates from employment with the City during the term of the loan for any reason, the remaining balance of the loan is immediately due and payable to the City. 6. The employee is solely responsible for any income tax liabilities associated with the loan. 7. Employees may only use this program one time. 8. This program will sunset on July 31, 1997. Funds not applied for and expended by that date will not be eligible. o How would the incentive be implemented? Once put in place, eligible employees would indicate in writing their wish to participate in the incentive program, and a discussion would be held with the employee to clarify any questions regarding the program. Contingency funds would be allocated from the general fund for this benefit and would be expended in the year the funds are paid out. The employee would receive the full $10,000 incentive and an accounting procedure would be put in place to monitor the forgivable portion of the loan. • • • Council Report 96 -94 Page 3 o Who would be eligible for the incentive program? Only sworn officers of the Hopkins Police Department would be eligible for this incen- tive program. The purpose of the program is to supplement and encourage ownership of housing by Hopkins officers as part of an effort to increase officer involvement and participation in community life, which will bolster our efforts in community oriented policing. o What other incentive options were considered? As part of the discussions with the Council regarding potential option initiatives, the fol- lowing ideas were discussed, but to date have not been pursued or implemented: - Rent subsidies - Moving expenses - Utility discounts - Private rental assistance - Use of crime prevention funds - Interest buy -downs by local banks - Property tax reimbursements for City portion of taxes - Legal assistance by the City Attorney Any additional research on the above mentioned options can still be pursued if it is desirable by the Council.