6.3 EDSR 08-21-2017 Cit of
,� Request for Action
River
To Item Number
Economic Development Authority 6.3
Agenda Section Meeting Date Prepared by
General Business August 21,2017 Lori Ziemer, Finance Director
Item Description Reviewed by
A Resolution Establishing the 2018 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 2018 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. In 2013, the EDA issued$9,685,000 cross-over refunding bonds to redeem
the Series 2007 Bonds on February 1,2017,which will start showing interest savings in 2017.
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.
Here is how the calculation is made for the 2017 levy for taxes payable in 2018:
Debt service amount—city portion $487,025
Levy (105%requirement) x 1.05
Total levy for taxes payable 2018 $511,376
Financial Impact
2017 levy for taxes payable in 2018 is$511,376.
Attachments
• Resolution
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Resolution 17-06
A Resolution of the City of Elk River Economic Development Authority
Establishing the 2018 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, in 2013, the EDA issued$9,685,000 cross-over refunding bonds to redeem
the Series 2007 Bonds on February 1,2017;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 of the bonds from 2008-2016.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
L of the City of Elk River,Minnesota,as follows: that it hereby levies a tax of$511,376 for
taxes payable in 2018 for the purposes of funding the debt service on$9,685,000 of bonds as
approved by voters to build a recreational facility to be leased to the YMCA.
Passed and adopted this 21st day of August 2017.
Dan Tveite,President
ATTEST:
Amanda Othoudt, Executive Director
1TO . a . r
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