6.0 EDSR 08-10-2009~/
Elk _ REQUEST FOR ACTION
......
River
To Item Number
Economic Develo ment Authori
Agenda Section Meeting Date Prepared by
Au st 10, 2009 Tim Simon, Finance Director
Item Description Reviewed by
A resolution establishing the 2010 referendum tax levy as
approved by voters for a recreational facility to be leased to the Reviewed by
YMCA
Action Requested
Approval of a resolution establishing the 2010 referendum tax levy as approved by voters for a
recreational facility to be leased to the YCMA.
Back~round/Discussion
Back in 2007, the EDA issued bonds in the amount of $12,000,000 for the construction of a recreational
facility to be leased to the YCMA. 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 $2,000,000 grant
from Sherburne County which is used to write-down the debt service payments for the Ciry over 8 years
($250,000 per year).
Here is how the calculation is made i
Debt service amount -City portion
Grant write-down
Total
Levy (105% requirement)
Total levy for taxes payable 2010
or the 2009 levy fox taxes payable in 2010;
$490,908
250 000
240,908
x 1.05
$252,953
Also when we finalize the YMCA project any remaining funds can be transferred from the project fund
to the debt service fund and used to write-down future debt requirements. If we end up with a balance in
the project fund we can amend the levy down ward before December. I expect final payment to be
received shortly from RJM construction.
Financial Impact
20091evy for taxes payable in 2010 is $252,953.
Attachments
A resolution establishing the 2010 referendum tax levy as approved by voters for a recreational facility to
be leased to the YMCA.
ACtIOn Motion by Second by Vote
Follow Up
S: \ C ouncil\Tim\ 2009 \ 2010YMCAlevy. doc
RESOLUTION 09 -
A RESOLUTION OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
A RESOLUTION ESTABLISHING THE 2010 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 fox a recreational facility to be leased to the
YMCA; and
WHEREAS, the City has received a Landfill Abatement Legacy Grant from Sherburne
County for certain qualifying recycled materials and these Grant funds
have been applied to reduce the debt service tax levy on the $12,000,000
of bonds.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of Elk River, Minnesota, that it hereby levies a tax of $252,953 for taxes
payable in 2010 for the purposes of funding the debt service on $12,000,000 of bonds as
approved by voters to build a recreational facility to be leased to the YMCA.
Passed and adopted by the Elk River Economic Development Authority this 10`h day of
August, 2009.
Pat Dwyer, President
ATTEST:
Catherine Mehelich, Executive Director
S: \ Council \Tim \ 2009 \ EDALEVY l Oymca. doc