09/05/2007 Council Packet - Laserfiche WebLink

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Lino Lakes' 2008 levy would be $0.56 per household (on an average value $216,000 home), for a total of $4,997. This amount assumes full participation from Anoka County cities. If fewer cities participate, the levy amount would go up, or the cost of the study would be reduced. Ms. Skepper also noted that some cities may participate in the internet study, but not opt in to the EDA this year. One other possible future activity being discussed is HRA purchase of foreclosed homes that could be resold in conjunction with a first time home buyer's program. Cities could benefit from this type of county -wide program, ensuring upkeep of housing stock and providing low - interest loans to make home - ownership more affordable to first time buyers. To date, the Cities of Lexington, St. Francis, Columbus, Hilltop, Columbia Heights and Burns Township have approved participation in the EDA. Andover, Ramsey and East Bethel have declined. Other cities have either placed it on a future agenda or have declined to consider it at this time. Local Voice There are still a number of issues to be determined as the new EDA moves forward. The Board of Directors of the Anoka County HRA will take on the additional role of EDA. There is discussion of establishing an advisory committee to the board, comprised of representatives of participating cities. Generally, a city council of a participating city determines how its levied money is spent within its city, and the HRA/EDA Board of Directors determines whether a project meets statutory requirements. But the Board of Directors could initiate a project, such as the internet study, without each city's approval. Council Options: 1. A city can chose to participate either this year, or any year in the future. However, it must opt in before the levy is set for the upcoming year. 2. If a city opts in to the EDA or HRA, it is obligated to stay in for five years. 3. A city can opt in to the EDA, the HRA, or both. However, because the EDA tax levy rate is higher than the HRA rate, it makes sense that if a city opts into the EDA, it would also participate in the HRA. It would not be a greater cost to the taxpayer, and it would provide greater flexibility in using funds for either housing or economic development. The council resolution must indicate in its resolution if it is participating in the HRA as well as the EDA. 4. The city could ask to be included in the County's proposed levy, and then delay its decision on whether to participate until December, when the final levy must be set. Participating in the Anoka County EDA does not preclude a city from having its own EDA or HRA. 2