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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />Economic Development Authority <br />Item Number <br />7.2 <br /> <br />Meeting Date <br />September 15, 2025 <br />Prepared By <br />Joshua Mollan, Economic Development Specialist <br /> <br />Item Description <br />Resolution 25-02: Levy for Debt Service on YMCA <br />Bonds <br />Reviewed by <br />Brent O'Neil <br />Cal Portner <br /> <br />Action Requested <br />Approve, by motion, Resolution 25-02 establishing the 2026 referendum tax levy of $518,866 for debt service <br />on the YMCA facility. <br /> <br /> <br />Background/Discussion <br />In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased to the <br />YMCA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 bonds. The <br />refunding created interest savings and set the maturity of the bonds for 2033. <br /> <br />Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service, and the YMCA pays <br />the remaining one-third. The EDA portion of the scheduled bond payment for 2026 is $494,158. The bond <br />issuance requirements necessitate funding the annual payments with a coverage ratio of 1.05, or 105% percent <br />of the bond payment. Therefore, the required levy for the 2026 bond payment is $518,866. <br /> <br />Financial Impact <br />The required levy for bond payments in 2026 is $518,866. <br /> <br />Mission/Policy/Goal <br />Support Elk River's existing businesses through relationship building, programmatic offerings, and high-quality <br />city services. <br /> <br />Attachments <br />1. EDA RES 25-02 YMCA Resolution <br /> <br /> <br />Page 13 of 15