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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Economic Development Authority 7.2 <br />Agenda Section Meeting Date Prepared by <br />General Business August 15, 2022 Joshua Mollan, Economic Development Specialist <br />Item Description Reviewed by <br />Resolution Establishing the 2023 Referendum Tax Brent O’Neil, Economic Development Director <br />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 2023 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 with the YMCA, the YMCA pays one-third of the debt service payments. <br />The EDA establishes a levy annually which covers the remaining two-thirds of the bond payments. <br /> <br />Here is how the calculation is made for the levy for taxes payable in 2023: <br /> <br />Debt service amount – city portion $491,091 <br />105% coverage requirement x 1.05 <br />Total levy for taxes payable 2023 $515,646 <br /> <br />Financial Impact <br />Levy for taxes payable in 2023 is $515,646. <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 />