7.2. EDSR 09-18-2023
Request for Action
To Item Number
Economic Development Authority 7.2
Agenda Section Meeting Date Prepared by
General Business September 18, 2023 Brent O’Neil, Economic Development Director
Item Description Reviewed by
Resolution Establishing the 2023 Referendum Tax Cal Portner, City Administrator
Levy for the YMCA Facility
Reviewed by
Action Requested
Approve, by motion, a resolution establishing the 2024 referendum tax levy of $518,096 for the debt service on
YMCA facility.
Background/Discussion
In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased to the
YMCA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 bonds on
February 1, 2017. The refunding created interest savings and set the maturity of the bonds in 2033.
Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service and the YMCA the
remaining one-third. The EDA portion of the scheduled bond payment for 2024 is $493,425. Per the terms of the
bond issuance, the EDA is required to demonstrate funding for bond payments at 105% of the bond payment
amount. Therefore, the required levy for the 2024 bond payment is $518,096.
Financial Impact
The levy for taxes payable in 2024 is $518,096.
Mission/Policy/Goal
Support Elk River’s existing businesses through relationship building, programmatic offerings, and high-quality
city services. Attract new business development to Elk River to build the city’s economic vibrancy, job offerings
and tax base.
Attachments
2024 YMCA Levy Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
4
Resolution 23-03
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 $518,096 for
taxes payable in 2024 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 18 day of September, 2023.
Dan Tveite, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director