6.2 EDSR 08-15-2016 Pik � Request for Action
River
To Item Number
Economic Development Authority 6.2
Agenda Section Meeting Date Prepared by
General Business August 15,2016 Lori Ziemer, Interim Finance Director
Item Description Reviewed by
A Resolution Establishing the 2017 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 2017 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 nine levies and was completed in 2016.
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 2016 levy for taxes payable in 2017:
Debt service amount—city portion $487,092
Levy (105%requirement) x 1.05
Total levy for taxes payable 2017 $511,447
Financial Impact
2016 levy for taxes payable in 2017 is $511,447.
Attachments
• Resolution
► o � EREe � r
NATURE
Elk
River
Resolution 16-04
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 had received a Landfill Abatement Legacy Grant from Sherburne
County for certain qualifying recycled materials and these grant funds were applied to reduce
the debt service tax levy on the$12,000,000 of bonds over the past nine years.
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$511,447 for
taxes payable in 2017 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 15th day of August,2016.
Dan Tveite,President
ATTEST:
Amanda Othoudt, Executive Director
rerEREI BY
NATURE