6.3. EDSR 08-20-2018
Request for Action
To Item Number
Economic Development Authority 6.3.
Agenda Section Meeting Date Prepared by
General Business August 20, 2018 Amanda Othoudt, EDD
Item Description Reviewed by
A Resolution Establishing the 2018 Referendum Lori Ziemer, Finance Director
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 2019 referendum tax levy as approved by voters for a
recreational facility to be leased to the YCMA.
Background/Discussion
In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased
to the YCMA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007
Bonds on February 1, 2017, which started 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.
Here is how the calculation is made for the 2018 levy for taxes payable in 2019:
Debt service amount – city portion $486,825
Levy (105% requirement) x 1.05
Total levy for taxes payable 2018 $511,166
Financial Impact
2018 levy for taxes payable in 2019 is $511,166.
Attachments
Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
4
Resolution 18-_____
A Resolution of the City of Elk River Economic Development Authority
Establishing the 2019 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.
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 $511,166 for
taxes payable in 2019 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.
th
Passed and adopted this 20 day of August, 2018.
Dan Tveite, President
ATTEST:
Amanda Othoudt, Executive Director