7.2 EDSR 08-19-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.2
Meeting Date
August 19, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Levy for Debt Service on YMCA Bonds
Reviewed by
Cal Portner
Action Requested
Approve, by motion, a resolution establishing the 2025 referendum tax levy of $520,336 for debt service on
the 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. The
refunding created interest savings and set the maturity of the bonds for 2033.
Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service and the YMCA pays
the remaining one-third. The EDA portion of the scheduled bond payment for 2025 is $495,558. The bond
issuance requirements necessitate funding the annual payments with a coverage ratio of 1.05, or 105% percent
of the bond payment. Therefore, the required levy for the 2025 bond payment is $520,336.
Financial Impact
The levy for taxes payable in 2025 is $520,336.
Mission/Policy/Goal
Support Elk River's existing businesses through relationship building, programmatic offerings, and high-quality
city services.
Attachments
1. Res 24-04 YMCA Resolution
Page 16 of 33
4
Resolution 24-04
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 $520,336 for
taxes payable in 2025 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 16th day of August, 2024.
Dan Tveite, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director
Page 17 of 33