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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Economic Development Authority 6.1 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessAugust 17, 2015Tim Simon, Finance Director <br />Item Description Reviewed by <br />A Resolution Establishing the 2016 Referendum Amanda Othoudt, EDD <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 /> <br />Approve, by motion, a resolution establishing the 2016 referendum tax levy as approved by voters for a <br />recreational facility to be leased to the YCMA. <br /> <br />Background/Discussion <br /> <br />In 2007, the EDA issued bonds in the amount of $12 million for the construction of a recreational facility <br />to be leased to the YCMA. <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. In addition, the city received a $2 million grant from Sherburne County which was <br />used to write-down the debt service payments over the past eight levies ($250,000 per year). The <br />remaining grant write-down is the interest earnings from the grant proceeds over the past eight years. <br /> <br />This will complete the debt service write-down amounts. In 2013, the EDA issued Crossover Refunding <br />Bonds, which will start showing interest savings in 2017. <br /> <br />Here is how the calculation is made for the 2015 levy for taxes payable in 2016: <br />Debt service amount – city portion $527,306 <br />Grant write-down (interest earnings) (140,000) <br /> Total 387,306 <br />Levy (105% requirement) x 1.05 <br /> Total levy for taxes payable 2016 $406,671 <br /> <br /> <br />Financial Impact <br /> <br />2015 levy for taxes payable in 2016 is $406,671. <br /> <br />Attachments <br /> <br /> <br /> <br /> <br />Resolution <br /> <br /> <br /> <br />