Meeting Date: July 27, 2021
To: Members of the Housing & Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
Housing & Redevelopment Authority 2022 Budget
Body
Action Requested:
The HRA to review and adopt the preliminary budget for 2022 with clarifications.
Summary Report:
Each year the HRA adopts a budget for the following year. The HRA's main source of revenue comes from ad valorum taxes. The HRA also receives income from rentals, interest and other miscellaneous sources.
The proposed budget includes estimated expenditures for 2022.
ANALYSIS
2022 General Operating Budget
Revenues
* There is a projected 4.5% increase in overall revenue for 2022. Ad valorum tax revenue is estimated to be $290,723, with other revenue projected at $80,050. This other revenue includes interest from investments (this number is provided by the Finance Department), income from rental properties and refunds and reimbursements.
* Revenue from rents have been calculated without vacancies- HRA has not had a unit vacancy since 2017. Rents should be reevaluated in the future to bring rent revenue in line with HUD's FMR for Rice County.
Personal Services
* Salaries, overtime, longevity, part-time, PERA, FICA, MED/Dental, Workman's Comp, etc. These budget items are set by the Finance Department.
Supplies - No change
Charges for Service
Professional Services
* The Professional Services budget item has been decreased to $10,000. Due to HRA initially sponsoring the rental license and policy modifications, along with a housing study, the original budgeted amount of $25,000 was expanded to $61,791 through HRA Resolutions.
Auditing/Accounting
* The Auditing/Accounting budget is set by the City of Northfield Finance Department
Legal Services
* Decrease from $22,000 to $10,000. 2021 saw an inordinate amount of legal activity stemming from land conveyance/sale of property, forgivable loan, updating legal forms, etc.
IT Equipment Replacement
* The IT Equipment Replac...
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