6.1. EDSR 08-17-2015
Request for Action
To Item Number
Economic Development Authority 6.1
Agenda Section Meeting Date Prepared by
General BusinessAugust 17, 2015Tim Simon, Finance Director
Item Description Reviewed by
A Resolution Establishing the 2016 Referendum Amanda Othoudt, EDD
Tax Levy as Approved by Voters for a Recreational
Reviewed by
Facility to be Leased to the YMCA
Cal Portner, City Administrator
Action Requested
Approve, by motion, a resolution establishing the 2016 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 million 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 million grant from Sherburne County which was
used to write-down the debt service payments over the past eight levies ($250,000 per year). The
remaining grant write-down is the interest earnings from the grant proceeds over the past eight years.
This will complete the debt service write-down amounts. In 2013, the EDA issued Crossover Refunding
Bonds, which will start showing interest savings in 2017.
Here is how the calculation is made for the 2015 levy for taxes payable in 2016:
Debt service amount – city portion $527,306
Grant write-down (interest earnings) (140,000)
Total 387,306
Levy (105% requirement) x 1.05
Total levy for taxes payable 2016 $406,671
Financial Impact
2015 levy for taxes payable in 2016 is $406,671.
Attachments
Resolution
Resolution 15-____
A Resolution of the City of Elk River Economic Development Authority
Establishing the 2016 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 followsthat it hereby levies a tax of $406,671 for
taxes payable in 2016 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.
th
Passed and adopted this 17 day of August, 2015.
Dan Tveite, President
ATTEST:
Amanda Othoudt, Executive Director