Clay County Board Approves $300,000 HRA Levy Amid Concerns Over Housing and Homelessness

The Clay County Board of Commissioners approved a $300,000 special benefit tax levy requested by the Housing and Redevelopment Authority (HRA) of Clay County for 2025. This decision comes after the HRA revised its initial levy request from $350,000, citing budgetary adjustments and cost-saving measures.

During the meeting, HRA representatives presented their case for the levy, explaining that they had achieved significant savings, including a 10% cost reduction on a reroofing project for the Agy apartments in Ulan, Minnesota, due to an error by the contractor. The reduction in workforce and consolidation of non-self-sustaining programs were also highlighted as successful cost-saving strategies.

Commissioner Mojo raised questions about the allocation of historical housing funds signed into law the previous year, confirming the HRA had received $15,600 for Hogia Estates and $1.4 million for Sharp View Apartments, with expectations for more funding from the Minnesota rental assistance program. The timeline for receiving these funds was discussed, acknowledging that it typically takes six to 18 months for allocation after approval.

Confusion arose over whether formal board approval was needed to reallocate previously awarded funds. The discussion clarified that there were two issues at hand: the request for the $300,000 levy and the reallocation of funds saved from earlier budgets. The board leaned towards addressing them as two separate motions to maintain clarity and proper procedures.

A motion to approve the HRA’s request for a special benefit tax of $300,000 was made, seconded, and discussed further. Commissioners expressed deep concerns about homelessness and emphasized the necessity of supporting the HRA’s efforts. One commissioner pointed out the challenges posed by state moratoriums that had depleted reserves and the importance of providing resources to organizations working to alleviate housing issues.

However, discomfort was expressed regarding the financial implications associated with managing properties, particularly those in Morehead. Concerns were raised about the lack of transparency on expenses and liabilities. It was clarified that while the HRA was managing properties for the City of Morehead, it was not assuming any financial liabilities.

The broader issue of housing and homelessness was a recurring theme, with some commissioners arguing against placing the entire burden on counties for funding solutions. They highlighted the need for state agencies to play a more significant role rather than relying solely on property taxes, which were described as regressive.

In other discussions, Darren Brooks, the HR Director, presented a request to purchase UKG recruiting and onboarding modules to enhance the efficiency of the county’s HR department. Brooks detailed the growth in county employees and the corresponding increase in workload without proportional support. The proposed modules aim to streamline recruitment processes, centralize job postings, and automate communication, reducing errors associated with manual entries.

The estimated cost for implementing the UKG system was noted to be $94,950, with an annual recurring cost of approximately $112,000. Potential funding sources were identified, including savings from a market study and the use of ARPA funds. Brooks projected that the system would be operational by the start of the new year, emphasizing the necessity of this upgrade to handle the increasing administrative demands and legislative requirements.

The board also deliberated on the allocation and use of remaining American Rescue Plan Act (ARPA) funds. The ARPA committee recommended utilizing $12,000 for implementation costs associated with a new system. A motion was made to designate $20,000 of the remaining ARPA funds to Public Health for vaccines, and $998,199 to restorative justice initiatives, with any remaining funds directed towards the general fund. This motion passed without opposition.

Additionally, the board addressed a resolution regarding the Clay County Trailblazers Snowmobile Club, authorizing the club to obtain landowner permission in the name of the club, formalizing the county’s role as a legal sponsor. This resolution was approved unanimously.

Committee reports included updates from various sectors. Commissioner Gross shared details from the quarterly Clay County Library meeting, noting an increase in revenues and ongoing evaluations of library collections. Updates from the Clay County Intergovernmental Committee meeting included discussions on the Heartland Trail study and planning for an upcoming retreat focusing on opioid prevention and legislative updates.

A notable community engagement event was the food forest initiative organized by the Clay Food Partners, which drew about 40 attendees. This project aims to cultivate a variety of fruits and berry gardens, fostering community involvement and education around sustainable practices.

In highway-related discussions, updates were provided on staffing and upcoming projects, including the construction of roundabouts on State Highways 12 and 52. The need for community engagement in the planning process was emphasized.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
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County Council Officials:
Frank Gross, Kevin Campbell, Paul Krabbenhoft, Jenny Mongeau, David Ebinger

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