Meeting Packet

June 18, 2019

1:30 pm – Finance Committee

CDA Office, 7645 Currell Blvd., Woodbury

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BOARD OF COMMISSIONERS 3BWASHINGTON COUNTY COMMUNITY DEVELOPMENT AGENCY

4BWASHINGTON COUNTY, MINNESOTA

FomamFINANCE COMMITTEE AGENDA June 18, 2019

5BWashington County CDA Office

6B7645 Currell Blvd., Conference Room 107 7BWoodbury, Minnesota

UItem No.

Page No.

1 1:30 p.m. UCALL REGULAR MEETING TO ORDER

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DISCUSSION D-1 2020 Draft Budget

3 - 16

3 ADJOURN

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Memo To: CDA Finance Committee From: Barbara Dacy, Executive Director Melissa Taphorn, Deputy Executive Director Aaron Christianson, Finance Director Date: June 11, 2019 RE: Key Assumptions for the 2020 Budget Background Preliminary budget assumptions were discussed at the May CDA Board of Commissioners meeting. The purpose of that discussion was to review the basic assumptions for preparing the 2020 draft budget. The first assumption was a detailed presentation of the CDA’s strategic initiatives and core services as follows:

“Building Our Future” Initiative – Communities truly prosper only when people of all income levels have stable housing. This initiative includes:

o Creating additional workforce housing units through the Low-Income Housing Tax Credit program and when necessary the GROW gap financing program.

o Increasing the number of households served by homeownership programs including home buyer education, counseling, first time homebuyer mortgages, and single-family rehabilitation loans.

o Creating additional units of supportive housing for households transitioning out of homelessness.

o Creating a partnership with Washington County Community Services to address supportive housing and homelessness needs.

“Serving Our Seniors” – A place to call home offers seniors an opportunity to live

and grow with independence and dignity. This initiative includes:

o Engaging communities and developers regarding unique CDA financing

resources administered by the CDA and Minnesota Housing’s Housing

Infrastructure Bond program.

o Identifying sites for future CDA senior housing developments aimed at

very low-income seniors.

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“Economic Development” Initiative – Creating jobs and business activity makes the pie larger and helps to hold the line on residential property taxes. This initiative includes:

o Promoting and marketing development opportunities and the advantages of having a business in the county.

o Engaging communities to identify strategic programs aimed at enhancing their economic development goals.

o Providing ongoing technical and financial assistance to businesses through the Open to Business Program.

o Partnering with communities to conduct predevelopment studies to create additional shovel ready sites for development.

“Housing Choices” Initiative – Creating the opportunity to have a secure and stable home is critical for families and their children and those with unique challenges to live with stability and dignity, including veterans, adults with disabilities, and young adults leaving foster care. This initiative includes:

o Increasing the number of households served by rental assistance programs.

o Engaging private landlords to participate in housing assistance programs in order to expand housing choices for families and individuals.

The CDA’s core function of owning and operating 1,100 units of workforce and senior housing not only provides revenue to operate a variety of CDA programs but also provides stable housing for over 2,000 people. Communities rely on CDA owned housing to meet their housing affordability goals.

The second assumption was a presentation outlining the approach the staff will take to develop the 2020 budget. As with previous years, the CDA’s methodology for creating the budget will be to fund program operations by first using the net revenues of the CDA owned properties. Next, grant awards from outside agencies will be considered. This will be followed by consideration of any fees generated by services provided by the CDA. Finally, after all other revenue sources are exhausted and expenses scrutinized, the levy will be considered. The 2020 budget was developed based on these two primary assumptions. 2020 Draft Budget - Presentation The 2020 budget is broken down into two activities. The two activities are governmental activities and business-type activities. Attachment A, page 1, presents the 2020 budget for each activity. The governmental activities column incorporates data from the governmental funds, while the business-type activities column incorporates data from the enterprise funds. The governmental funds are made up of the general fund, housing assistance fund, community development fund, economic development fund, home ownership counseling fund and the tax increment finance fund. Attachment A, page 2, presents the 2020 budget for governmental funds. The enterprise funds are made up of the public housing fund, senior housing fund, family housing fund, Briar Pond, LLC, and the managing member partnership. Attachment A, page 3, presents the 2020 budget for enterprise funds.

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2020 Draft Budget – Key Budget Items

Operating Revenues – Rents: The draft budget includes a 3% rent increase for Woodland Park and Briar Pond, and a 2% rent increase for the remaining properties. Attachment B presents the impact the proposed rent increase will have on the market rents of each property. It also shows the dollar per unit increase by property. As shown by Attachment C, the rent increase will generate additional rental revenue of $210,200. Staff has compared the new market rents to various benchmarks, including HUD Fair Market Rent (FMR) and Met Council Area Median Income (AMI), and has determined rents are affordable and within acceptable ranges. Alternatively, a rent increase of 2% at Woodland Park and Briar Pond, and a 1% rent increase for the remaining properties would lower rent revenue projections by $32,100 to $178,100. A flat 1% rent increase across all properties would lower expectations by an additional $17,800 to $160,300.

Operating Revenues – Grants: It is anticipated that grant revenue will remain relatively consistent when compared to the prior year.

Operating Revenues – Other Income: This line item is primarily made up of services fee income in the general fund. It also includes other income from the properties, examples include laundry and parking income. The $40,000 increase over the prior year represents an increase in service fees in the general fund. Some expenses in the general fund are charged directly to, and are paid for by, the properties. The general fund records this charge back as service fee income. The service fee income is used to offset general fund expenditures.

Operating Expenses – Salary and Benefits: Costs are projected to increase $202,000, or 8.4%. The increase includes the new Community Development Technician position which has a $59,000 impact on the 2020 budget. The remaining increase of $143,000 is due to the impact of the agreed upon COLA adjustment of 2.4% and salary raises awarded to employees based upon the terms of the board approved compensation plan. In addition, the increase allows for some flexibility during health insurance negotiations.

Operating Expenses – Administration, Maintenance, Utilities, Taxes and Insurance – Costs are projected to increase $150,142, or 1.3%.

Nonoperating Revenues – Levy: Staff is requesting a levy increase of $185,751, or 3.55%. See Attachment D for a breakdown of how the levy is allocated. The increase will primarily be used to fund salary and benefits, including the new staff position mentioned above.

Nonoperating Revenues – Investment Income: This line item includes interest earned on cash deposits, trust deposits and various loans. Some of the loans are deferred so the interest is not received, it only accumulates. The increase of $77,000 is entirely due to interest income. Much of the interest is earned in the reserve and trust accounts and is therefore unavailable for operational use.

Nonoperating Revenues – Other Income: This line item includes TIF receipts used to pay a loan related to the Red Oak Preserve TIF district. It also includes

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IRS rebates received, which are used to pay interest on the 2010B bonds and 2012B bonds, (Trailside and QECB, respectively).

Debt Service – Debt service is projected to decrease $94,000 from the prior year.

Capital Outlay – It is anticipated that projected capital outlay of $1.6 million is fully funded for 2020. It is anticipated that grant funding of $538,000 will be received. The remaining $1.0 million will be paid for with annual levy and property reserves.

The budget as presented fully funds the CDA’s 2020 strategic initiatives, core services and program operations. The proposed budget funds all capital expenditures and adds an additional $502,000 to long-term capital reserves, $260,000 from levy and $242,000 from the properties. The proposed budget also retains interest earnings generated by reserve deposits and restricted deposits. These earnings are added to the existing reserve and restricted balances, which help the CDA to meet minimum fund balance requirements. Fund Balance Policy Reserve balances are driven by the fund balance policy. The fund balance policy requires the consideration of significant risks to the CDA. Significant risks to the CDA have been identified and included within the policy. These risks are reviewed and considered during the budget process. The CDA identified the following risks for consideration:

Predictability of revenues. The Agency’s revenues are concentrated into three main sources including, property rents, levy and grant funding. Levy funds are received twice a year, which may limit their availability during crucial times. Grant funds are generally awarded on an annual basis and often require the Agency to expend funds prior to being reimbursed by the grant. In recent years, some federal grants have also been subject to sequestration.

Size of the Agency. Due to the concentrated revenue streams, number of staff and the size of the annual budget, the Agency would be considered a small government unit. Small government units are often limited in their ability to react nimbly to a changing environment. As such, larger reserves are often necessary.

Exposure to significant capital improvement needs. The Agency owns and operates over 1,100 senior, family and public housing units. On an annual basis, it is important to routinely appropriate sufficient maintenance and capital improvement funds to ensure that the units meet or exceed building and safety code requirements and compete well in the marketplace.

Potential impact on the Agency’s or County’s bond rating. Although the Agency has not had a bond rating call due to market conditions for some time, most of the Agency’s bonds have the Washington County’s general obligation pledge and the Agency’s reserves and property incomes have been considered by Moody’s and S&P during those rating calls.

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Tax credit projects. The Agency is general partner and managing member in multiple tax credit projects. If the tax credit partnerships do not perform as predicted, the Agency has provided certain monetary guarantees to its partners.

CDBG and HOME program administration. The Agency has taken on the CDBG and HOME program administration from Washington County. It is the Agency’s responsibility to review applications and make grant awards to external applicants. This requires the agency to advance funds to awardees and then seek reimbursement from the grants. In addition, if an awardee were to mishandle the program award, the Agency may have to repay the money awarded back to HUD regardless of whether or not it can be recouped from the awardee. Finally, the Agency has indemnified the County from any wrongdoing in the event an issue arises with the administration of these duties.

Government shutdown. Based on the recent federal government shutdown, it is clear that federal and state operations play a role in the Agency’s ability to provide services in their entirety. The Agency has a policy in place to identify what will be funded and what will not be funded in the event of another shutdown. Adequate reserves are necessary in order to implement the policy requirements.

Potential drain upon general fund resources from other funds. The Agency’s involvement in housing and economic development projects, coupled with expectations from communities within Washington County, creates the potential that general fund resources could be used to complete a project or address a community need.

Composition of existing assets. The Agency holds land held for resale and long-term receivables that would be difficult to impossible to liquidate or sell during a time of need. These assets must be considered in circumstances where fund balance exists but where an asset for current use does not.

The operating reserve is projected to total $7.5 million at the end of 2020. The CDA’s fund balance policy sets the minimum required balance at $2.4 million which represents 50% of the next fiscal year’s budgeted General Fund expenditures plus three months of the next fiscal year’s budgeted operating expense for the properties. The $2.4 million represents the minimum requirement. Given the impact any of the risks described above could have on the CDA, it is reasonable to carry a reserve balance that exceeds the minimum amount. The long-term capital reserve policy requires 10%-25% of the prior year’s business activity accumulated depreciation to be reserved for future needs. The 2020 range is projected to be $3.3 million to $8.0 million. The long-term capital reserve balance at the end of 2020 is projected to be at $3.8 million. An additional $1.9 million in capital reserves is held in the properties. These deposits are required by various agreements and are held by third parties. Briar Pond makes up $1.5 million of the balance and the funds are held by a HUD agent. The restricted reserves are funds held in trust. The trust deposits include escrow accounts for debt service, debt service reserve, insurance and taxes to name a few.

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These deposits accrue in accordance with the CDA’s bond agreements. Deposits held within these accounts are used to pay for items detailed by the bond agreements. Committed reserves are projected to be nearly $4.0 million at the end of 2020. $2.4 million of the balance are funds committed to The Glen at Valley Creek. The remaining $1.6 million are funds committed to the “Building our Future” and “Serving our Seniors” strategic initiatives. It is appropriate to evaluate the adequacy of the reserve balances and to also use the reserve balances as needed in the case of an emergency or in the event of a one-time expenditure. Although these instances can occur at any time, it is most appropriate to consider reserve balances and potential use of reserve balances during the budget process. Given the size of the CDA’s property portfolio and the breadth of services provided, staff has determined that current reserve balances are at a reasonable level and fall within existing policy guidance. Conclusion As stated before, this budget fully funds the CDA’s 2020 strategic initiatives, core services and program operations. It includes a rent increase of 2% and 3%, which will generate $210,000 of additional rental revenue. It includes a levy increase of $185,751. The additional rent and levy will be used to pay for the $365,000 increase in operational costs and will also fund future capital expenditures. Overall, the 2020 budget allows the CDA to maintain strong reserve balances, which in turn strengthens the Agency financially and reduces risk to ourselves, our stakeholders and our investors.

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Attachment A

Washington County Community Development Agency2020 Budget - Combined Activities

Governmental Activities

Business-Type Activities 2020 2019

Percentage Change

Operating Revenues:Net rental revenues -$ 8,874,600$ 8,874,600$ 8,650,800$ 2.59%Grant revenue - operating 5,992,100 224,166 6,216,266 6,298,680 -1.31%Other - operating 658,100 224,000 882,100 844,000 4.51%

Total Operating Revenues 1 6,650,200$ 9,322,766$ 15,972,966$ 15,793,480$ 1.14%

Operating Expenses:Salary and benefits 2,621,900 - 2,621,900 2,419,350 8.37%Administration 7,058,900 2,375,209 9,434,109 9,353,429 0.86%Maintenance 78,300 1,916,100 1,994,400 2,010,309 -0.79%Utilities 21,500 854,800 876,300 832,800 5.22%Property Taxes And Insurance 11,800 867,200 879,000 824,900 6.56%

Total Operating Expenses 9,792,400$ 6,013,309$ 15,805,709$ 15,440,788$ 2.36%Operating Income (Loss) (3,142,200)$ 3,309,457$ 167,257$ 352,692$

Nonoperating Revenues:Property tax revenue 1 3,896,931 1,523,046 5,419,977 5,234,226 3.55%Investment income 277,365 365,725 643,090 368,790 74.38%Other income 160,800 392,803 553,603 476,803 16.11%

Total Nonoperating Revenues 4,335,096$ 2,281,574$ 6,616,670$ 6,079,819$ 8.83%Nonoperating Expenses - 227,400 227,400 227,400 0.00%

Total Nonoperating Revenues And Expense 4,335,096$ 2,054,174$ 6,389,270$ 5,852,419$

Income Before Debt Service - Cash: 1,192,896$ 5,363,631$ 6,556,527$ 6,205,111$

Debt service - interest 141,700 1,558,307 1,700,007 1,785,815 -4.80%Debt service - principal 316,503 2,460,573 2,777,076 2,785,219 -0.29%

Total Debt Service-Cash 458,203$ 4,018,880$ 4,477,083$ 4,571,034$ -2.06%Income Before Capital Activity and Transfers 734,693$ 1,344,751$ 2,079,444$ 1,634,077$

Grant revenue - capital - 538,216 538,216 524,753 2.57%Capital outlay - (1,598,782) (1,598,782) (2,164,335) -26.13%

Total Capital Activity -$ (1,060,566)$ (1,060,566)$ (1,639,582)$

Transfer from other funds 794,400 1,031,544 1,825,944 2,800,775 -34.81%Transfer to other funds (1,031,544) (794,400) (1,825,944) (2,800,775) -34.81%

Net Operating Transfers (237,144)$ 237,144$ -$ -$

Total Cash Available For Operations 2 497,549$ 521,329$ 1,018,878$ (5,505)$

Estimated cash 12/31/19 13,975,058 12,806,728 26,781,786 26,787,291 Estimated cash 12/31/20 14,472,607$ 13,328,057$ 27,800,664$ 26,781,786$

Operating reserves 3, 4 6,701,183 755,241 7,456,424 7,237,918 Operating reserves - Trust 4 - 804,464 804,464 799,097 Long-term capital reserves 3 3,812,502 1,860,436 5,672,938 4,900,669 Restricted reserves 329,293 9,577,976 9,907,269 9,943,533 Committed reserves 4 3,629,629 329,940 3,959,569 3,900,569

Estimated cash 12/31/20 14,472,607$ 13,328,057$ 27,800,664$ 26,781,786$

1 Levy is leveraged 1:4.2 Increase due to contribution to long-term capital reserve and interest earned in restricted deposits.3 Minimum balance of $2,400,200 and $3,298,600 required for operating and long-term capital reserves, respectively.4 Per the fund balance policy, unrestricted reserves should be within the range of $14.2 million to $20.8 million

Total

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Attachment A

Washington County Community Development Agency2020 Budget - Governmental Activities

General Fund

Housing Assistance

Fund

Community Development

Fund

Economic Development

Fund

Home Ownership

Fund

Tax Increment

Fund

2020 Governmental

Total

2019 Governmental

TotalOperating Revenues:

Net rental revenues -$ -$ -$ -$ -$ -$ -$ -$ Grant revenue - operating - 4,676,400 1,212,800 - 102,900 - 5,992,100 6,138,680 Other - operating 628,600 - 29,500 - - - 658,100 620,300

Total Operating Revenues 628,600$ 4,676,400$ 1,242,300$ -$ 102,900$ -$ 6,650,200$ 6,758,980$

Operating Expenses:Salary and benefits 1,039,800 489,900 697,400 193,500 201,300 - 2,621,900 2,419,350 Administration 495,600 4,315,300 1,794,500 445,000 6,400 2,100 7,058,900 7,006,842 Maintenance 78,300 - - - - - 78,300 79,800 Utilities 21,500 - - - - - 21,500 21,800 Property Taxes And Insurance 7,900 2,900 1,000 - - - 11,800 10,600

Total Operating Expenses 1,643,100$ 4,808,100$ 2,492,900$ 638,500$ 207,700$ 2,100$ 9,792,400$ 9,538,392$ Operating Income (Loss) (1,014,500)$ (131,700)$ (1,250,600)$ (638,500)$ (104,800)$ (2,100)$ (3,142,200)$ (2,779,412)$

Nonoperating Revenues:Property tax revenue 1,764,050 126,900 1,326,419 574,762 104,800 - 3,896,931 3,713,126 Investment income 175,000 3,800 96,565 2,000 - - 277,365 120,665 Other income - 1,000 - - - 159,800 160,800 153,300

Total Nonoperating Revenues 1,939,050$ 131,700$ 1,422,984$ 576,762$ 104,800$ 159,800$ 4,335,096$ 3,987,091$ Nonoperating Expenses - - - - - - - -

Total Nonoperating Revenues And Expense 1,939,050$ 131,700$ 1,422,984$ 576,762$ 104,800$ 159,800$ 4,335,096$ 3,987,091$

Income Before Debt Service - Cash: 924,550$ -$ 172,384$ (61,738)$ -$ 157,700$ 1,192,896$ 1,207,679$

Debt service - interest 26,800 - 19,498 - - 95,402 141,700 154,108 Debt service - principal 123,800 - 130,630 - - 62,073 316,503 341,892

Total Debt Service-Cash 150,600$ -$ 150,128$ -$ -$ 157,475$ 458,203$ 496,000$ Income Before Capital Activity and Transfers 773,950$ -$ 22,256$ (61,738)$ -$ 225$ 734,693$ 711,679$

Grant revenue - capital - - - - - - - - Capital outlay - - - - - - - (34,000)

Total Capital Activity -$ -$ -$ -$ -$ -$ -$ (34,000)$

Transfer from other funds 794,400 - - - - - 794,400 1,130,000 Transfer to other funds (1,031,544) - - - - - (1,031,544) (1,585,775)

Net Operating Transfers (237,144)$ -$ -$ -$ -$ -$ (237,144)$ (455,775)$

Total Cash Available For Operations 536,806$ -$ 22,256$ (61,738)$ -$ 225$ 497,549$ 221,904$

Estimated cash 12/31/19 10,951,365 177,609 2,576,739 218,096 27,272 23,977 13,975,058 13,753,154 Estimated cash 12/31/20 11,488,171$ 177,609$ 2,598,995$ 156,358$ 27,272$ 24,202$ 14,472,607$ 13,975,058$

Operating reserves 5,675,669 - 869,156 156,358 - - 6,701,183 6,657,371 Operating reserves - Trust - - - - - - - - Long-term capital reserves 3,812,502 - - - - - 3,812,502 3,381,246 Restricted reserves - 177,609 100,210 - 27,272 24,202 329,293 365,812 Committed reserves 2,000,000 - 1,629,629 - - - 3,629,629 3,570,629

Estimated cash 12/31/20 11,488,171$ 177,609$ 2,598,995$ 156,358$ 27,272$ 24,202$ 14,472,607$ 13,975,058$

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Attachment A

Washington County Community Development Agency2020 Budget - Business-Type Activities

Public Housing

Fund

Senior Housing

Fund

Family Housing

Fund Briar Pond

Managing Member

Partnerships

2020 Business-TypeTotal

2019 Business-TypeTotal

Operating Revenues:Net rental revenues 346,400$ 3,600,800$ 2,686,900$ 2,240,500$ -$ 8,874,600$ 8,650,800$ Grant revenue - operating 224,166 - - - - 224,166 160,000 Other - operating 10,600 126,200 68,900 18,300 - 224,000 223,700

Total Operating Revenues 581,166$ 3,727,000$ 2,755,800$ 2,258,800$ -$ 9,322,766$ 9,034,500$

Operating Expenses:Salary and benefits - - - - - - - Administration 368,784 915,616 595,761 492,548 2,500 2,375,209 2,346,587 Maintenance 192,000 729,600 657,800 336,700 - 1,916,100 1,930,509 Utilities 50,300 295,500 302,700 206,300 - 854,800 811,000 Property Taxes And Insurance 64,800 355,700 264,500 182,200 - 867,200 814,300

Total Operating Expenses 675,884$ 2,296,416$ 1,820,761$ 1,217,748$ 2,500$ 6,013,309$ 5,902,396$ Operating Income (Loss) (94,718)$ 1,430,584$ 935,039$ 1,041,052$ (2,500)$ 3,309,457$ 3,132,104$

Nonoperating Revenues:Property tax revenue 162,545 607,544 485,326 26,621 241,010 1,523,046 1,521,100 Investment income 6,600 61,900 50,600 20,800 225,825 365,725 248,125 Other income - 189,300 119,658 - 83,845 392,803 323,503

Total Nonoperating Revenues 169,145$ 858,744$ 655,584$ 47,421$ 550,680$ 2,281,574$ 2,092,728$ Nonoperating Expenses 32,400 - - - 195,000 227,400 227,400

Total Nonoperating Revenues And Expense 136,745$ 858,744$ 655,584$ 47,421$ 355,680$ 2,054,174$ 1,865,328$

Income Before Debt Service - Cash: 42,027$ 2,289,328$ 1,590,623$ 1,088,473$ 353,180$ 5,363,631$ 4,997,432$

Debt service - interest 444 549,012 391,688 343,225 273,938 1,558,307 1,631,707 Debt service - principal 124 979,860 1,088,076 222,513 170,000 2,460,573 2,443,327

Total Debt Service-Cash 568$ 1,528,872$ 1,479,764$ 565,738$ 443,938$ 4,018,880$ 4,075,034$ Income Before Capital Activity and Transfers 41,459$ 760,456$ 110,859$ 522,735$ (90,758)$ 1,344,751$ 922,398$

Grant revenue - capital 134,687 403,529 - - - 538,216 524,753 Capital outlay (134,687) (1,189,093) (245,980) (29,022) - (1,598,782) (2,130,335)

Total Capital Activity -$ (785,564)$ (245,980)$ (29,022)$ -$ (1,060,566)$ (1,605,582)$

Transfer from other funds - 785,564 245,980 - - 1,031,544 1,670,775 Transfer to other funds - (389,900) (169,500) (189,000) (46,000) (794,400) (1,215,000)

Net Operating Transfers -$ 395,664$ 76,480$ (189,000)$ (46,000)$ 237,144$ 455,775$

Total Cash Available For Operations 41,459$ 370,556$ (58,641)$ 304,713$ (136,758)$ 521,329$ (227,409)$

Estimated cash 12/31/19 950,764 4,874,057 4,057,823 1,960,897 963,187 12,806,728 13,034,137 Estimated cash 12/31/20 992,223$ 5,244,613$ 3,999,182$ 2,265,610$ 826,429$ 13,328,057$ 12,806,728$

Operating reserves - 192,531 25,000 537,710 - 755,241 580,547 Operating reserves - Trust - 273,711 530,753 - - 804,464 799,097 Long-term capital reserves 29,088 246,389 69,559 1,515,400 - 1,860,436 1,519,423 Restricted reserves 963,135 4,531,982 3,373,870 212,500 496,489 9,577,976 9,577,721 Committed reserves - - - - 329,940 329,940 329,940

Estimated cash 12/31/20 992,223$ 5,244,613$ 3,999,182$ 2,265,610$ 826,429$ 13,328,057$ 12,806,728$

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Attachment B

Units Effic 1 BR-A 2 BR-A 2 BR-TH 3 BR-TH GaragesAnn Bodlovick 50 n/a $740-$778 $890-$899 n/a n/a $35Briar Pond 196 n/a $919 $1,030-$1,123 $1,154 $1,318 includedBrick Pond 40 $637 $760 $880 n/a n/a $25Cobble Hill 45 n/a $790 $911 n/a n/a $35Groves 68 n/a n/a n/a n/a $922-$937 includedJohn Jergens 30 n/a $741 $856 n/a n/a $35Muller Manor 28 n/a $671 $721 n/a n/a $35Oakhill Cottages 40 n/a $689 $788 n/a n/a $35Park Place 42 n/a $660 $728 n/a n/a n/aPiccadilly Square 79 n/a $798-$875 $1,017-$1,192 n/a n/a includedPioneer 18 n/a $663 $683 n/a n/a n/aRaymie Johnson 120 n/a $779 $891 $761 $805 $35Trailside 70 n/a $440,$740,$824 $567,$938,$1,025 n/a n/a n/aWoodland Park 180 n/a $853 $992 $1,035 $1,256 includedHUD FMR 2019 $763 $915 $1,151 $1,63630% AMI Met Council 2018 $495 $531 $636 $73550% AMI Met Council 2018 $826 $885 $1,061 $1,22660% AMI Met Council 2018 $991 $1,062 $1,273 $1,47180% AMI Met Council 2018 $1,321 $1,416 $1,697 $1,961

2020 dollar per unit type increase amountsUnits Effic 1 BR-A 2 BR-A 2 BR-TH 3 BR-TH Garages

Ann Bodlovick 50 n/a $14-$14 $17-$18 n/a n/a n/aBriar Pond 196 n/a $27 $30-$33 $34 $38 n/aBrick Pond 40 $12 $15 $17 n/a n/a n/aCobble Hill 45 n/a $15 $18 n/a n/a n/aGroves 68 n/a n/a n/a n/a $18-$18 n/aJohn Jergens 30 n/a $15 $17 n/a n/a n/aMuller Manor 28 n/a $13 $14 n/a n/a n/aOakhill Cottages 40 n/a $13 $15 n/a n/a n/aPark Place 42 n/a $13 $14 n/a n/a n/aPiccadilly Square 79 n/a $16-$17 $20-$23 n/a n/a n/aPioneer 18 n/a $13 $13 n/a n/a n/aRaymie Johnson 120 n/a HUD HUD HUD HUD n/aTrailside 70 n/a $9,$14,$16 $11,$18,$20 n/a n/a n/aWoodland Park 180 n/a $25 $29 $30 $37 n/a

"Market" Rental Rates for WCCDA Properties2020 Marketing Rents

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Attachment B

Units Effic 1 BR-A 2 BR-A 2 BR-TH 3 BR-TH GaragesAnn Bodlovick 50 n/a $726-$764 $873-$881 n/a n/a $35Briar Pond 196 n/a $892 $1,000-$1,090 $1,120 $1,280 includedBrick Pond 40 $625 $745 $863 n/a n/a $25Cobble Hill 45 n/a $775 $893 n/a n/a $35Groves 68 n/a n/a n/a n/a $904-$919 includedJohn Jergens 30 n/a $726 $839 n/a n/a $35Muller Manor 28 n/a $658 $707 n/a n/a $35Oakhill Cottages 40 n/a $676 $773 n/a n/a $35Park Place 42 n/a $647 $714 n/a n/a n/aPiccadilly Square 79 n/a $782-$858 $997-$1,169 n/a n/a includedPioneer 18 n/a $650 $670 n/a n/a n/aRaymie Johnson 120 n/a $760 $869 $741 $785 $35Trailside 70 n/a $431,$726,$808 $556,$920,$1,005 n/a n/a n/aWoodland Park 180 n/a $828 $963 $1,005 $1,219 included

HUD FMR 2019 $763 $915 $1,151 $1,63630% AMI Met Council 2018 $495 $531 $636 $73550% AMI Met Council 2018 $826 $885 $1,061 $1,22660% AMI Met Council 2018 $991 $1,062 $1,273 $1,471 80% AMI Met Council 2018 $1,321 $1,416 $1,697 $1,961

2019 dollar per unit type increase amountsUnits Effic 1 BR-A 2 BR-A 2 BR-TH 3 BR-TH Garages

Ann Bodlovick 50 n/a $14-$16 $18-$18 n/a n/a n/aBriar Pond 196 n/a $26 $29-$32 $33 $37 n/aBrick Pond 40 $12 $15 $17 n/a n/a n/aCobble Hill 45 n/a $16 $18 n/a n/a n/aGroves 68 n/a n/a n/a n/a $18-$18 n/aJohn Jergens 30 n/a $14 $16 n/a n/a n/aMuller Manor 28 n/a $12 $14 n/a n/a n/aOakhill Cottages 40 n/a $13 $15 n/a n/a n/aPark Place 42 n/a $13 $14 n/a n/a n/aPiccadilly Square 79 n/a $15-$17 $20-$23 n/a n/a n/aPioneer 18 n/a $12 $13 n/a n/a n/aRaymie Johnson 120 n/a HUD HUD HUD HUD n/aTrailside 70 n/a $8,$14,$16 $11,$18,$20 n/a n/a n/aWoodland Park 180 n/a $24 $28 $29 $35 n/a

"Market" Rental Rates for WCCDA Properties2019 Marketing Rents

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Attachment C

Budgeted Proposed Targeted Calculated RentFund Property Vacancy Rate 2020 2019 Change Increase % Increase %601 Oakhill 3% 354,000$     347,200$         6,800$      2% 2.0%602 Muller 3% 223,500       219,200          4,300       2% 2.0%609 Ann Bodlovick 3% 461,200       452,100          9,100       2% 2.0%610 Trailside 3% 633,200       621,000          12,200     2% 2.0%612 John Jergens 3% 275,500       270,500          5,000       2% 1.8%613 Pioneer 3% 137,700       135,200          2,500       2% 1.8%614 Cobble 3% 427,300       418,500          8,800       2% 2.1%617 Raymie Johnson* 3% 1,094,700   1,067,800       26,900     0% 2.5%604 Woodland Park 5% 1,978,500   1,922,000       56,500     3% 2.9%605 Briar Pond 5% 2,243,400   2,179,500       63,900     3% 2.9%607 Park Place I 5% 291,100       285,500          5,600       2% 2.0%620 Park Place II 5% 48,700         47,700            1,000       2% 2.1%626 Brick Pond 5% 364,700       357,100          7,600       2% 2.1%616 Transitional Housing 5% 15,900         15,900            ‐           0% 0.0%635 Scattered Sites** 0% 188,300       188,300          ‐           0% 0.0%636 Whispering Pines** 0% 150,200       150,200          ‐           0% 0.0%

Increase over PY 8,887,900$  8,677,700$     210,200$ 2.4%

500 Groves 718,000       704,900          13,100     2% 1.9%501 Piccadilly 819,900       803,800          16,100     2% 2.0%

1,537,900$  1,508,700$     29,200$    1.9%

* Annual rent increase is controlled by HUD.** Annual rent is impacted by participant's income. Any increase or decrease over prior year is based on projected rents of current participants. These projections will fluctuate year to year.

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Attachment D

2020 2019

Strategic Initiatives

Economic Development 274,762$ 274,762$

Open to Business 150,000 150,000

Predevelopment Finance Fund 150,000 150,000

574,762 574,762

Building our Future

GROW Program 500,000 500,000

Red Rock Crossing - Newport 4,000 8,000

Services and technical expertise provided to communities 460,635 401,983

Red Oak Preserve - Debt service 111,784 174,000

1,076,419 1,083,983

Serving our Seniors

Senior Housing 250,000 250,000

Housing Choices

Services and expertise provided to voucher programs 126,900 -

Housing counseling and homeownership programs 104,800 81,500

231,700 81,500

Total Strategic Initiatives 2,132,881$ 1,990,245$

Core Services

Senior and Workforce Housing

Debt Service Coverage and Operational Support 1,523,046 1,521,100

Capital Improvement Program 1,397,000 1,397,000

2,920,046 2,918,100

CDA General Fund

Project support provided within the Agency 216,450 325,881

General - Debt Service 150,600 -

367,050 325,881

Total Core Services 3,287,096$ 3,243,981$

Total Agency Levy 5,419,977$ 5,234,226$

Increase over prior year: 185,751$ 3.55%

Washington County CDA

2020 Levy

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A Finance Committee 6-18-19 Cover PageB 6-18-19 Agenda - Finance CommitteeBB 2020 Finance Committee Budget Overview MemoC Attachment AD Attachment BE Attachment CF Attachment D