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REQUEST FOR ACTION <br />To Item Number <br />Economic Develo ment Authori 6 . <br />Agenda Section Meeting Date Prepared by <br /> Au ust 10, 2010 Tim Simon, Finance Director <br />Item Description Reviewed by <br />A resolution establishing the 2011 referendum tax levy as <br />approved by voters for a recreational facility to be leased to the Reviewed by <br />YMCA <br />Action Requested <br />Approval of a resolution establishing the 2011 referendum tax levy as approved by voters for a <br />recreational facility to be leased to the YCMA. <br />Background/Discussion <br />Back in 2007, the EDA issued bonds in the amount of $12,000,000 for the construction of a recreational <br />facility to be leased to the YCMA. As part of the lease agreement the city levies two-thirds of the bond <br />payments and the YMCA pays the remaining one-third. In addition, the City received a $2,000,000 grant <br />from Sherburne County which is used to write-down the debt service payments for the City over 8 years <br />($250,000 per year). <br />Here is how the calculation is made 1 <br />Debt service amount -City portion <br />Grant write-down <br />Total <br />Levy (105% requirement) <br />Total levy for taxes payable 2011 <br />:or the 20101evy for taxes payable in 2011: <br />$494,720 <br />250 000 <br />244,720 <br />x 1.05 <br />$256,956 <br />Financial Impact <br />20101evy for taxes payable in 2011 is $256,956. <br />Attachments <br />A resolution establishing the 2011 referendum tax levy as approved by voters for a recreational facility to <br />be leased to the YMCA. <br />Action Motion by Second by Vote <br />Follow Up <br />C:\Users\cmehelich\AppData\Local\Microsoft\Windows\Temporary Internet <br />Files \ OLK4635 \ 2011 YMCAIevy. doc <br />