CR 90-174 Resolution Approving Tax Levyop
glin xu g
o Letter from Holmes & Graven, 7/24/90
o A 1991 Budget
eso1ution No 90-94
::= a: s D. .erre. , &
Economic Devel °:pment Director
oosent genda
411 August 15, 1990
RESOLUTION APPROVING 1990 TAX LEVY - 1991 F1RA BUDGET
Council Report :90 -174
EMRAlgt Amt s n.
Staff recommends adoption of the following motion: Adopt Resolu icn
Nom_ 0=9, Authoriz the I. Benefit Tax pursuant to
iota $tatut A a_ S�'cti 469.033 Su d. 6 and APnroving a Budget for
F e er 1191.
Once adopted, a copy of this resolution will be filed with the
Minnesota Department of Revenue.
Overview.
An HRA is allowed under state statute to levy a tax on the city in
which it operates. The funds raised from this levy can be used to pay
the cost of undertaking a redevelopment project.
Several HRA's in the state presently raise funds through a levy. A
large percentage of these use this revenue to pay various
administrative costs incurred by the URA in carrying through its
duties. The City staff has discussed such a levy and are of the
opinion that it may be a good method for the URA to procure operating
income to both address these "fiscally tight times;' and financial
contraints recently placed on the use of tax increment funds for
administration of Imo,. Redevelopment Activities.
In order to have the option of using the levy for 1991, it is
necessary that the HRA undertake the action presently being proposed
by staff prior to September 1. With this action the PIRA is under no
obligation to actually implement the levy if it is determined
unnecessary at that tie,
Pxiaa ► ai gat a to .+Iar t
o What is the purpose of this action?
o If this action is approved, is the 'Council /HRA obligated to
implement the levy?
o What items are detailed in the budget?
o What further actions are required?
o What is the relationship of the HRA levy to the City levy
limits?
•
•
TAX LEVY/HRA. BUDGET
CR: 90 -174
Page 2
Based on the recommended action the HRA /City Council has the following
issues to consider:
o What is the purpose of this action?
State statute requires that all public entities wishing to implement a
tax within its area of operation during a specific year must approve
and certify to the County Auditor a budget and preliminary levy for
the following year. Once this preliminary levy is approved, the final
certified budget and levy y cannot exceed this amount.
o if this action is approved, is the HRA /Council obligated to
implement the levy?
With approval of this action the HRA /Council ability is basically
reserving the ability to implement a levy for 1991. The City
Council /HRA, through its normal budgeting process, which for 1990 will
occur from August through November, will have the opportunity to
determine if an IRA, levy is actually necessary. If determined
necessary and appropriate, the final levy will need to be certified to
the County Auditor by approximately the end of December along with the
City budget and levy. If this final certification is not undertaken,
a levy would not be implemented.
o What items are detailed in the budget?
Staff has proposed that should the HRA levy be implemented, that it be
used to pay staff salaries and miscellaneous administrative expenses
involved with implementation of HRA redevelopment activities. These
activities are eligible expenses to be paid with revenue generated
from the levy.
At the present time a majority of these expenses are funded by the
various tax increment districts within the City. However, the recent
tax increment law changes now place a limit on the amount of funds
that can be used for administrative purposes. As a result, it may be
necessary that some of these costs now be picked up with general fund
dollars
Exclusive of the action on this, HRA will still continue to approve an
annual budget for operation of its Public Housing
o What further actions are required?
With approval of the preliminary levy it will be necessary for staff,
411 during the next few months of the budgeting process, to determine the
necessity of implementing the levy based upon the financial needs of
the City /ERA for 1991. Based upon this review, staff will be
recommending HRA /City budget to the Council in November that could
possibly include the HRA. levy as one funding source.
•
•
TAX LEVY/HRA BUDGET
CR: 90 -174
Page 3
o What is the relationship of the HRA levy to the City levy limits?
The levy raised by the HRA is not subject to the statutory City limit
and would not affect the overall City levy limits.
o What is the amount of the levy to be certified?
State statute limits the amount of the ERA levy to .0131% of the Citys
taxable market value. The 1990 estimated market value for Hopkins is
$615,378,200 making the maxi HRA levy payable in 1991 $80,614.
Staff at this time is requesting that the City Council/HRA certify the
maximum levy. During the budgeting process t he amount actually to be
certified in the final levy can be something less.
AlttrAttiYANa.
Based upon the recommended action, the City Council /HRA has the
following alternatives:
1. Approve the action as requested by staff: This action will
allow the preliminary levy and budget to be certified with the
County Auditor by the September 1 deadline date. With this
certification the City will be reserving its right to consider
the implementation of an HRA levy for 1991.
2. Deny the action as recommended by staff. l f no HRA levy and
budget is approved and certified to the County Auditor by
September 1 the use of this as a tool as a possible revenue
source would be eliminated from consideration. This would
require the possible use of additional general fund doIlare to
pay for administrative costs related to the implementation of
the City/HRA redevelopment activities, The potential impact
of this on the general fund has not been determined to date.
3. Approve preliminary levy and
recommended by staff. Should
implemented for 1991 it would
the amount of the preliminary
budget in an amount leas than
an HRA budget and levy be
be restricted to no more than
levy.
i -+.Lt; 13 0 1..];:14 H ?1_; !E_' '; C;F'r Y E.r t
Resolution No 90-94
RESOLUnON AUTHOR/ZING THE LEVY OF A
SPECL4L BENEFIT TAX PURSUANT TO MII NlTO'1 A
ti A°i 'I'P SECTION 469.033, SURD. 6, AND
APPROVAL OP A ILF1OE''I` POR FISCAL ?F;AR 1991.
WHEREAS, the housing and Redevelopment Authority in and for the. City of
Hopkins (the "Authority') was created by action of the City Council of the City of
Hopkins (the "City ") pursuant to Minnesota Statutes s es:tion 469.001; and
WHEREAS, pursuant to such actin on the part of the City and IVIinnesote
StatuW, Sections 469.001 to 469.047 (the "Act"), the Authority was granted all of
the same: functions, rights, powers, duties, privileges, immunities and limitations as
are provided for housing and redevelopment authorities under the Act; and
WHEREAS, Section 469.033, subd. 6, of the Act permits the Authority to
levy and collect a special benefit tax of up to .0131% of taxable market value upon
all taxable property both real and personal, within the Authority's area of
operation; and
WHEREAS, the Authority desires to levy such a speeial benefit tax in the
antosint of .I)131% of gable market value of taxable property within its area of
• op"ec .tion; idyl
WHEREAS, the levy of such a special benefit tax is subject to consent by
reso ttion of the City Council a the City; and
WHEREAS, the Authority is also required pursuant to Section 469.033, subd.
6 of the Act to, in connection with the levy of such. a special benefit tax,
forte and file a budget in accordance with the budget procedure of the City in
the she manner as required of executive departments of the City: or, of no budgets
are rfevirAtd to be filed, by August 1, and the amount of the tax levy for the
foll:4/111g year shall be based upon that budget and approved by the City Council of
the City; and
WHEREAS, the Authority has before it for its consideration a copy of a
fott e. *r .t for its operations for fiscal year 1991.
NOW, THEREFORE, be it resolved by the Board of Commissioners of the
Autk r4ty as follows:
Section 1. The budget as presented for the operations of the Authority
for fIse.AI year 1991 is hereby In all respects approved.
Section 2. Staff of the Authority are hereby authorized azid directed to
farw rd said budget to the City for its approval.
• 3.990
Ht-bz. J '?y
Attett:
The above resolution was adopted this 2 1 day of Au_ust
........11,4WwWwWilesam.m1 Md.
p. 3
Film: 101 GENERAL
DEPT: HRA
100 Regular Employee Salaries
- Econ Dev Specialist 3,127
- Housing Coordinator 15,737
•- Intern 7,800
Employee Benefits
Expert & professional Services
1991 BUDGET
CITY OF F Pry €NS
EXPLAIN MCIIOBJECr
EXIT 1O0 191-193,
AND 5XX
PAGE 1 OF 1
Total 80,614