6.0 EDSR 08-10-2009 - Laserfiche WebLink

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~/ Elk _ REQUEST FOR ACTION ...... River To Item Number Economic Develo ment Authori Agenda Section Meeting Date Prepared by Au st 10, 2009 Tim Simon, Finance Director Item Description Reviewed by A resolution establishing the 2010 referendum tax levy as approved by voters for a recreational facility to be leased to the Reviewed by YMCA Action Requested Approval of a resolution establishing the 2010 referendum tax levy as approved by voters for a recreational facility to be leased to the YCMA. Back~round/Discussion Back in 2007, the EDA issued bonds in the amount of $12,000,000 for the construction of a recreational facility to be leased to the YCMA. As part of the lease agreement the city levies two-thirds of the bond payments and the YMCA pays the remaining one-third. In addition, the City received a $2,000,000 grant from Sherburne County which is used to write-down the debt service payments for the Ciry over 8 years ($250,000 per year). Here is how the calculation is made i Debt service amount -City portion Grant write-down Total Levy (105% requirement) Total levy for taxes payable 2010 or the 2009 levy fox taxes payable in 2010; $490,908 250 000 240,908 x 1.05 $252,953 Also when we finalize the YMCA project any remaining funds can be transferred from the project fund to the debt service fund and used to write-down future debt requirements. If we end up with a balance in the project fund we can amend the levy down ward before December. I expect final payment to be received shortly from RJM construction. Financial Impact 20091evy for taxes payable in 2010 is $252,953. Attachments A resolution establishing the 2010 referendum tax levy as approved by voters for a recreational facility to be leased to the YMCA. ACtIOn Motion by Second by Vote Follow Up S: \ C ouncil\Tim\ 2009 \ 2010YMCAlevy. doc