HRA BOARD AGENDA Meeting: Thursday, December 10, 2020 Place: Buffalo City Center Time: 3:00 PM
1. CALL TO ORDER
2. AGENDA ADDITIONS OR DELETIONS
3. APPROVAL OF NOVEMBER 12 MINUTES
4. APPROVAL OF CLAIMS
5. OLD BUSINESS A. Approval of Final Levy for 2021
6. NEW BUSINESS A. Approval of Year End Transfers
7. STAFF UPDATES
8. ADJOURN
HRA MINUTES November 12, 2020
CALL TO ORDER Pursuant to due call and notice thereof, Chairperson Nauman called the HRA regular meeting to order at 3:10 PM in the Pulaski Room of the City Center at 212 Central Avenue. Present were: Dustin Grage (off site), Jill Nauman (on site), John Siffert (off site) and Michael Anderson (off site). Absent was Bryan Brengman. Also in attendance were Executive Director Laureen Bodin, Assistant City Administrator Alison Matthees, Finance Manager Ashley Hansen, Community & Economic Development Director Jennifer Nash, City Clerk Susan Johnson and Messina Owings of Central Minnesota Housing Partnership (CMHP).
APPROVAL OF OCTOBER 8 MINUTES Upon motion by Member Grage, motion seconded by Member Siffert to approve of the October 8 minutes.
VOTE Grage Brengman Nauman Siffert Anderson Aye X ☐ X X ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ X ☐ ☐ X
Motion passed.
OLD BUSINESS Small Cities Development Program Grant Application Community & Economic Development Director Jennifer Nash and Messina Owings of CMHP presented the Small Cities Development Program Grant Application process – a competitive grant process through the State of Minnesota which provides funding for rehabilitation projects. The preapplication phase for funding for rehabilitation of downtown commercial and the NW area owner-occupied residential is being finalized and the status was discussed.
Member Anderson joinedDRAFT the meeting at 3:29 PM.
The Board Members discussed amounts the HRA was willing to support in matching low-interest loan funds or matching for homeowners and businesses if the grant is awarded. The authorization of these leverage funds will be included in the preapplication.
Upon motion by Grage, motion seconded by Siffert to move forward with an application for matching funds (low-interest loans or matching grant funds) at a maximum $1,000 for residential projects and a maximum of $5,000 for commercial projects based on the HRA’s cash balance at the time if the grant application is approved.
VOTE Grage Brengman Nauman Siffert Anderson Aye X ☐ X X X Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ X ☐ ☐ ☐
Motion passed.
NEW BUSINESS Post Issuance Debt Compliance Policy Assistant Administrator Matthees reported that this policy update is recommended by our financial advisors. Last update was in 2013 and many new rules have been put into place, this update keeps the HRA in compliance with debt related laws.
Upon motion by Member Anderson, motion seconded Member Grage to approve of the updated policy and resolution 2020-1.
Housing and Redevelopment Authority of the City of Buffalo, Minnesota Post-Issuance Debt Compliance Policy
The Board of Commissioners (the “Board”) of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota (the “HRA”) has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable federal regulations. This policy may be amended, as necessary, in the future.
IRS Background The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the “Code”) and regulations promulgated thereunder (“Treasury Regulations”) governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement aDRAFT post-issuance debt compliance policy and procedures to safeguard against post-issuance violations.
SEC Background The Securities and Exchange Commission (SEC) is responsible for enforcing compliance with the SEC Rule 15c2-12 (the “Rule”). Governments or governmental entities issuing obligations generally have a requirement to meet specific continuing disclosure standards set forth in continuing disclosure agreements (“CDA”). Unless the issuer, obligated person, or a specific obligation is exempt from compliance with CDAs, these agreements are entered into at the time of obligation issuance to enable underwriter(s) to comply with the Rule. The Rule sets forth certain obligations of (i) underwriters to receive, review and disseminate official statements prepared by issuers of most primary offerings of municipal securities, (ii) underwriters to obtain CDAs from issuers and other obligated persons to provide material event disclosure and annual financial information on a continuing basis, and (iii) broker-dealers to have access to such continuing disclosure in order to make recommendations of municipal securities transactions in the secondary market. The SEC encourages issuers and beneficiaries adopt and implement a post-issuance debt compliance policy and procedures to safeguard against Rule violations.
When obligations are issued, the CDA commits the issuer or obligated person to provide certain annual financial information and material event notices to the public. Issuers and other obligated persons may also choose to provide periodic, voluntary financial information and filings to investors in addition to fulfilling the specific responsibilities delineated in their CDA. It is important to note that issuers and other obligated persons should not give any one investor certain information that is not readily available to all market participants by disseminating information to the marketplace, at large. Issuers and other obligated persons should be aware that any disclosure activities determined to be “communicating to the market” can be subject to regulatory scrutiny.
Post-Issuance Debt Compliance Policy Objective The HRA desires to monitor these obligations to ensure compliance with the IRS Code, Treasury Regulations and the SEC Rule. To help ensure compliance, the HRA has developed the following policy (the “Post-Issuance Debt Compliance Policy”). The Post- Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance.
Post-Issuance Debt Compliance Policy The Finance Manager of the City is designated as the HRA’s agent who is responsible for post-issuance compliance of these obligations.
The Finance Manager shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the “Post-Issuance Debt Compliance Procedures”). At a minimum, the Post- Issuance Debt ComplianceDRAFT Procedures for each qualifying obligation will address the following:
1. General Post-Issuance Compliance 2. General Recordkeeping 3. Arbitrage Yield Restriction and Rebate Recordkeeping 4. Expenditure and Asset Documentation to be Assembled and Retained 5. Miscellaneous Documentation to be Assembled and Retained 6. Additional Undertakings and Activities that Support Sections 1 through 5 above 7. Continuing Disclosure Obligations 8. Compliance with Future Requirements
The Finance Manager shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. Further, the Finance Manager will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.
The Finance Manager or any other individuals responsible for assisting the Finance Manager in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance.
Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to taxable governmental obligations unless there is a reasonable possibility that the HRA may refund their taxable governmental obligation, in whole or in part, with the proceeds of a tax-exempt governmental obligation. If this refunding possibility exists, then the Finance Manager shall treat the taxable governmental obligation as if such issue were an issue of tax-exempt governmental obligations and comply with the requirements of this Post-Issuance Debt Compliance Policy.
Private Activity Bonds The HRA may issue tax-exempt obligations that are “private activity” bonds because either (1) the bonds finance a facility that is owned by the HRA but used by one or more qualified 501(c)(3) organizations, or (2) the bonds are so-called “conduit bonds”, where the proceeds are loaned to a qualified 501(c)(3) organization or another private entity that finances activities eligible for tax-exempt financing under federal law (such as certain manufacturing projects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the Finance Manager shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy.
In a case where compliance activities are reasonably within the control of a private party (i.e., a 501(c)(3) organization or conduit borrower), the Finance Manager may determine that all or someDRAFT portion of compliance responsibilities described in this Post- Issuance Debt Compliance Policy shall be assigned to the relevant party. In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the HRA under federal law. In a case where the Finance Manager is concerned about the compliance ability of a private party, the Finance Manager may require that a trustee or other independent third party be retained to assist with record keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities.
The Finance Manager is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the HRA is in compliance with this Post-Issuance Debt Compliance Policy.
Adopted this 12th day of November 2020 by the Housing and Redevelopment Authority of the City of Buffalo, Minnesota
VOTE Grage Brengman Nauman Siffert Anderson Aye X ☐ X X X Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ X ☐ ☐ ☐
Motion passed.
APPROVAL OF CLAIMS Upon motion by Member Siffert, motion seconded by Member Anderson to approve of the following claims.
City of Buffalo Buffalo Housing & Redevelopment Authority Approval of Claims 11/12/2020 Meeting
Paid to: Description Date Paid Check # Amount 3rd ROUND COMBINED CARES GRANTS CARES SMALL BUSINESS GRANTS 10/19/2020 3823-3828 $47,000.00 4th ROUND CARES GRANTS CARES SMALL BUSINESS GRANTS 10/28/2020 3832-3841 $92,604.63 5th ROUND CARES GRANTS CARES SMALL BUSINESS GRANTS 11/5/2020 3842 $10,000.00
TOTAL: $149,604.63
VOTE Grage Brengman Nauman Siffert Anderson Aye X ☐ X X X Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent DRAFT☐ ☐ X ☐ ☐
Motion passed.
REDEVELOPMENT OF POINT PROPERTY ON 2ND STREET NW ACROSS FROM GOVERNMENT CENTER Executive Director Bodin said the HRA had an appraisal done approximately a year ago. At that time, an agreement was not reached for the purchase of the property. The Point family has come back to HRA asking for interest in purchasing the property. Staff is asking if the HRA would like discussion to take place with the Point family on costs.
Russ & Del Point spoke on behalf of the family. In all fairness to the City/HRA they want to see if there is still interest in purchasing the property.
Member Siffert questioned putting efforts into this area versus the downtown. Executive Director Bodin said she feels this is downtown especially with the upcoming move of the Government center.
After discussion, the HRA Board directed Staff to discuss the possible purchase of the property with the Point family and to bring the results of those discussion back to the HRA.
POSSIBLE DEVELOPMENT Community & Economic Development Director Jennifer Nash reported that she is in communications with a developer looking at doing a new retail development. She asked the HRA what their priorities would be in giving financial incentives.
The Board was tentative to commit to anything without more details. In general, the Board was not in favor of spending money outside of the downtown. If any incentives were provided, they would most likely be for roadway improvements that would need to be done.
Executive Director Bodin recommended road improvements over other financial incentives. Member Anderson said he is more comfortable spending for infrastructure than purchasing property. Members Grage and Siffert agreed.
ADJOURN Upon motion by Member Siffert, motion seconded by Member Grage to adjourn the meeting at 4:28 PM.
VOTE Grage Brengman Nauman Siffert Anderson Aye X ☐ X X X Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ DRAFT☐ ☐ ☐ ☐ Absent ☐ X ☐ ☐ ☐ Motion passed.
Chairperson
Executive Director
Return to Agenda 12-01-2020 1:00 PM A/P PAYMENT REGISTER PAGE: 1 PACKET: 06621 HRA 12.01.20 VENDOR SET: 02 VENDOR SEQUENCE
VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING DISC DT BALANCE DISCOUNT ------
02-1C0001 CITY OF BUFFALO
I IT - OCT 20 CITY OF BUFFALO HRA R 12/19/2020 432.08 432.08CR G/L ACCOUNT 432.08 551 46324-4395 MISCELLANEOUS 432.08 CITY OF BUFFALO
I IT - SEP 20 CITY OF BUFFALO HRA R 12/19/2020 432.08 432.08CR G/L ACCOUNT 432.08 551 46324-4395 MISCELLANEOUS 432.08 CITY OF BUFFALO
REG. CHECK 864.16 864.16CR 0.00 864.16 0.00 ------12-01-2020 1:00 PM A/P PAYMENT REGISTER PAGE: 2 PACKET: 06621 HRA 12.01.20 VENDOR SET: 02
======R E P O R T T O T A L S ======
F U N D D I S T R I B U T I O N
FUND NO# FUND NAME AMOUNT ------551 H.R.A. GENERAL FUND 864.16CR
** TOTALS ** 864.16CR ======
---- TYPE OF CHECK TOTALS ----
GROSS PAYMENT OUTSTANDING NUMBER BALANCE DISCOUNT
HAND CHECKS 0.00 0.00 0.00 0.00 0.00
DRAFTS 0.00 0.00 0.00 0.00 0.00
REG-CHECKS 864.16 864.16CR 0.00 864.16 0.00
EFT 0.00 0.00 0.00 0.00 0.00
NON-CHECKS 0.00 0.00 0.00 0.00 0.00
ALL CHECKS 864.16 864.16CR 0.00 864.16 0.00
TOTAL CHECKS TO PRINT: 1 ------
ERRORS: 0 WARNINGS: 0 City of Buffalo Buffalo Housing & Redevelopment Authority Approval of Claims 12/10/2020 Meeting
Paid to: Description Date Paid Check # Amount BOLTON & MENK ENGINEERING FEES 10/13/2020 3829 $260.00 EHLERS & ASSOCIATES PROFESSIONAL SERVICES 10/13/2020 3830 $250.00 LHB, INC. PROFESSIONAL SERVICES 10/13/2020 3831 $1,485.00 BOLTON & MENK ENGINEERING FEES 11/10/2020 3843 $1,372.50
TOTAL: $3,367.50
Approved
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HRA AGENDA REPORT ITEM #5A
MEETING DATE: December 10, 2020 PREPARED BY: Finance Manager, Ashley Hansen PRESENTED BY: Executive Director, Laureen Bodin AGENDA ITEM: HRA Final Levy – Pay 2021
BACKGROUND SUMMARY: Annually, the Buffalo Housing and Redevelopment Authority (HRA) sets a levy for funds to be raised by taxation for the Buffalo HRA. A preliminary levy for the payable year 2021 was approved in September for $282,578. It is now time for the final levy to be set and filed with Wright County.
RECOMMENDATION: It is recommended that the HRA approve the final levy as proposed and forward to the City Council for consideration.
ATTACHMENTS: • Final Levy Certification Form – HRA Pay 2021 Final Levy Certification STATE of MINNESOTA Return by: December 30, 2020 COUNTY of WRIGHT District Taxes Voted Buffalo HRA
To the AUDITOR of Wright County: I hereby certify that the Council for the City of Buffalo, County of Wright, Minnesota, did at a meeting on______levy the following amount to be raised by taxation for the Buffalo HRA the payable year 2021.
2021 Proposed 2021 Final A B C D A B C D (A-B-C=D) (A-B-C=D) 2021 2021 2021 2021 2021 2021 2021 2021 Budget Other Tax Budget Other Certified Requirement LGA Resources Levy # Fund Requirement LGA Resources Levy 282,578 282,578 1 Administration 282,578 261,735
282,578 0 0 282,578 Total 282,578 0 0 261,735
Dated this ______day of ______, 2020. Laureen Bodin, Executive Director
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HRA AGENDA REPORT ITEM #6A
MEETING DATE: December 10, 2020 PREPARED BY: Finance Manager, Ashley Hansen PRESENTED BY: Executive Director, Laureen Bodin AGENDA ITEM: Approval of Transfers - 2020
BACKGROUND SUMMARY: Transfers from the General fund to the HRA Debt Service fund and City Debt Service fund are necessary for the HRA to meet its debt obligations. The transfer of money between HRA funds require board approval. City staff is asking the HRA board to approve the interfund transfers as noted on the attached listing.
RECOMMENDATION: It is recommended that the HRA approve the interfund transfers for fiscal year 2020.
ATTACHMENTS: • Transfer Listing - 2020 CITY OF BUFFALO ~ HRA 2020 Transfers & Advances
Transfer From - Fund Transfer To - Fund Transfer Requested Comments
General 551 HRA Debt Service 581 116,885.00 Scheduled Bond Payment - Series 2012C
General 551 HRA Debt Service 581 21,506.10 Scheduled Bond Payment - Series 2009A
General 551 HRA Debt Service 581 21,761.01 Scheduled Payment - Loan with Electric Fund
HRA Debt Service 581 City Debt Service (2012C) 376 41,885.00 Payment on Advance from Other Fund Payment (2012C)
Advance From - Fund Advance To - Fund Advance Requested Comments
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