Laserfiche WebLink
<br />Request for Action <br /> <br /> <br />To Item Number <br />Economic Development Authority 7.1 <br />Agenda Section Meeting Date Prepared by <br />General Business August 19, 2019 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />A Resolution Establishing the 2020 Referendum Lori Ziemer, Finance Director <br />Tax Levy as Approved by Voters for a Recreational <br />Reviewed by <br />Facility to be Leased to the YMCA <br />Cal Portner, City Administrator <br /> <br />Action Requested <br />Approve, by motion, a resolution establishing the 2020 referendum tax levy as approved by voters for a <br />recreational facility to be leased to the YCMA. <br /> <br />Background/Discussion <br />In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased <br />to the YCMA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 <br />Bonds on February 1, 2017, which started showing interest savings in 2017. <br /> <br />As part of the lease agreement, the city levies two-thirds of the bond payments and the YMCA pays the <br />remaining one-third. <br /> <br />Here is how the calculation is made for the 2019 levy for taxes payable in 2020: <br /> <br />Debt service amount – city portion $489,825 <br />Levy (105% requirement) x 1.05 <br /> Total levy for taxes payable 2020 $514,316 <br /> <br />Financial Impact <br />2019 levy for taxes payable in 2020 is $514,316. <br /> <br />Attachments <br /> Resolution <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />