6. EDSR 08-19-2013 Elk REQUEST FOR ACTION
River
To Item Number
Economic Development Authori 6.
Agenda Section Meeting Date Prepared by
August 19, 2013 Tim Simon, Finance Director
Item Description Reviewed by
A resolution establishing the 2014 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 2014 referendum tax levy as approved by voters for a
recreational facility to be leased to the YCMA.
Background/Discussion
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 2013 levy for taxes payable in 2014:
Debt service amount—City portion $501,024
Grant write-down (250,000)
Total 251,024
Levy (105%requirement) x 1.05
Total levy for taxes payable 2014 $263,575
Financial Impact
2013 levy for taxes payable in 2014 is $263,575.
Attachments
A resolution establishing the 2014 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\lEDA\EDA to move\Agenda\Year2013\8-19-2013\x 6 sr 2014 YMCA
levy.doc
RESOLUTION 13 - 07
A RESOLUTION OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
AMENDED RESOLUTION ESTABLISHING THE 2014 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$263,575 for taxes
payable in 2014 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 19th day of
August, 2013.
Dan Tveite,President
ATTEST:
Brian Beeman, Executive Director