6.2. EDSR 08-18-2014 ilk Request for Action
River
To Item Number
Economic Development Authority 6.2 _-
Agenda Section Meeting Date Prepared by
General Business August 18, 2014 Tim Simon, Finance Director
Item Description Reviewed by
A resolution establishing the 2015 referendum tax
levy as approved by voters for a recreational facility
to be leased to the YMCA Reviewed by
Action Requested
Approve by motion, a resolution establishing the 2015 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). In 2013,The EDA issued cross over refunding bonds which will start showing
interest savings in 2017.
Here is how the calculation is made for the 2014 levy for taxes payable in 2015:
Debt service amount—City portion $526,933
Grant write-down (250,000)
Total 276,933
Levy (105%requirement) x 1.05
Total levy for taxes payable 2015 $290,779
Financial Impact
2014 levy for taxes payable in 2015 is $290,779.
Attachments
• A resolution establishing the 2015 referendum tax levy as approved by voters for a recreational
facility to be leased to the YMCA.
re-1 [ W 1 1 Template Updated 4/14 ATURE
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Elk
River
Resolution I4-
A Resolution of the City of Elk River Economic Development Authority
Establishing the 2015 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
of the City of Elk River,Minnesota, as follows: that it hereby levies a tax of$290,779 for
taxes payable in 2015 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 this 18th day of August 2014.
Dan Tveite,President
ATTEST:
Brian Beeman, Executive Director
e-1E1E1 11
NATURE