6. EDSR 08-09-2010REQUEST FOR ACTION
To Item Number
Economic Develo ment Authori 6 .
Agenda Section Meeting Date Prepared by
Au ust 10, 2010 Tim Simon, Finance Director
Item Description Reviewed by
A resolution establishing the 2011 referendum tax levy as
approved by voters for a recreational facility to be leased to the Reviewed by
YMCA
Action Requested
Approval of a resolution establishing the 2011 referendum tax levy as approved by voters for a
recreational facility to be leased to the YCMA.
Background/Discussion
Back in 2007, the EDA issued bonds in the amount of $12,000,000 for the construction of a recreational
facility to be leased to the YCMA. As part of the lease agreement the city levies two-thirds of the bond
payments and the YMCA pays the remaining one-third. In addition, the City received a $2,000,000 grant
from Sherburne County which is used to write-down the debt service payments for the City over 8 years
($250,000 per year).
Here is how the calculation is made 1
Debt service amount -City portion
Grant write-down
Total
Levy (105% requirement)
Total levy for taxes payable 2011
:or the 20101evy for taxes payable in 2011:
$494,720
250 000
244,720
x 1.05
$256,956
Financial Impact
20101evy for taxes payable in 2011 is $256,956.
Attachments
A resolution establishing the 2011 referendum tax levy as approved by voters for a recreational facility to
be leased to the YMCA.
Action Motion by Second by Vote
Follow Up
C:\Users\cmehelich\AppData\Local\Microsoft\Windows\Temporary Internet
Files \ OLK4635 \ 2011 YMCAIevy. doc
RESOLUTION 10-
A RESOLUTION OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
AMENDED RESOLUTION ESTABLISHING THE 2011 REFERENDUM TAX
LEVY AS APPROVED BY VOTERS FOR A RECREATIONAL FACILITY TO BE
LEASED TO THE YMCA
WHEREAS, On September 12, 2006, the voters of the City of Elk River approved a
referendum pledging the City's full faith, credit, and resources to
$12,000,000 of bonds for a recreational facility to be leased to the
YMCA; and
WHEREAS, the City has received a Landfill Abatement Legacy Grant from Sherburne
County for certain qualifying recycled materials and these Grant funds
have been applied to reduce the debt service tax levy on the $12,000,000
of bonds.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of Elk River, Minnesota, that it hereby levies a tax of $256,956 for taxes
payable in 2011 for the purposes of funding the debt service on $12,000,000 of bonds as
approved by voters to build a recreational facility to be leased to the YMCA.
Passed and adopted by the Elk River Economic Development Authority this 9`'' day of
August, 2010.
Ron Touchette, EDA President
ATTEST:
Catherine Mehelich, Executive Director