7.2. EDSR 08-15-2022
Request for Action
To Item Number
Economic Development Authority 7.2
Agenda Section Meeting Date Prepared by
General Business August 15, 2022 Joshua Mollan, Economic Development Specialist
Item Description Reviewed by
Resolution Establishing the 2023 Referendum Tax Brent O’Neil, Economic Development Director
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 2023 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 with the YMCA, the YMCA pays one-third of the debt service payments.
The EDA establishes a levy annually which covers the remaining two-thirds of the bond payments.
Here is how the calculation is made for the levy for taxes payable in 2023:
Debt service amount – city portion $491,091
105% coverage requirement x 1.05
Total levy for taxes payable 2023 $515,646
Financial Impact
Levy for taxes payable in 2023 is $515,646.
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 22-02
A Resolution of the City of Elk River Economic Development Authority
Establishing the 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 $515,646 for
taxes payable in 2023 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 15 day of August, 2022.
Dan Tveite, President
ATTEST:
Brent O’Neil, Executive Director