Semstra seeks a smaller HRA levy; board approves core levy only

Buffy Barenic, executive director of Semstra, told the Goodhue County Board that Semstra is requesting a core HRA levy of $379,424 and offered a second option that would add roughly $225,000 to fund the housing trust fund, for a total levy request of $604,424. "We do not have an increase in our levy. We are actually requesting about 50,000 less than what we were asking last year," Barenic said, citing the planned decertification of a TIF district and other revenue increases as drivers of the lower request.

Barenic described the two-tier proposal as similar to prior years: tier 1 would fund core operations, while tier 2 would fund the housing trust fund and other initiatives. She said Semstra currently expects a housing trust fund balance of about $300,000 after existing awards are spent and that the additional $225,000 would boost available funds for 2025 to roughly $325,000 and allow Semstra to issue another RFP for housing projects.

Board members debated whether to adopt the full tiered package or the core levy only. Board member (Speaker 2) argued for Option B, saying "this is really the only place where we're moving on housing in the county" and urged the board to support the larger trust-fund contribution, noting further discussion would follow at an Economic Development Authority meeting. Other board members pressed that the trust fund balance will decline as awarded projects are spent and emphasized preservation needs for facilities Semstra manages.

Board member (Speaker 6) moved for Option A (the core levy only); the motion was seconded and, after discussion, the board approved Option A by voice vote. The board did not adopt the $225,000 top-up at the preliminary levy stage.

What happens next: this approval sets the preliminary HRA levy but, as Barenic noted, preliminary levies can be decreased in December but not increased; the final levy will be set later in the budget process.