8. EDSR 08-13-2012 ik REQUEST FOR ACTION
River
To Item Number
Economic Development Authori 8,
Agenda Section Meeting Date Prepared by
August 13,2012 Tim Simon, Finance Director
Item Description Reviewed by
A resolution establishing the 2013 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 2013 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 for the 2012 levy for taxes payable in 2013:
Debt service amount—City portion $498,112
Grant write-down (250,000)
Total 248,112
Levy (105%requirement) x 1.05
Total levy for taxes payable 2013 $260,518
Financial Impact
2012 levy for taxes payable in 2013 is $260,518.
Attachments
A resolution establishing the 2013 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
N:\Departments\Community Development\Economic Development\EDA to
move\Agenda\Year 2012\8-13-12 EDA Agenda\2013YMCAlevy.doc
RESOLUTION 12-02
A RESOLUTION OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
AMENDED RESOLUTION ESTABLISHING THE 2013 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$260,518 for taxes
payable in 2013 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 13th day of
August, 2012.
Dan Tveite,President
ATTEST:
Annie Deckert, Executive Director