6. EDSR 09-14-2009 - Laserfiche WebLink

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// City of El -~-~ River REQUEST FOR ACTION To Item Number Economic Develo ment Authori 5 Agenda Section Meeting Date Prepared by Administration Se tember 14, 2009 Tim Simon, Finance Director Item Description Reviewed by Consider YMCA request for additional items to be considered Lori ohnson, Ci Administrator as project costs and consider adjusting the EDA tax levy for Reviewed by payable 2010 related to the YMCA bonds Action Requested 1) To consider items submitted by the YMCA to be included in the project costs from the bond issue of the recreational facility. 2) Consider adjusting the EDA tax levy for payable 2010 related to the YMCA bonds. Back4round/Discussion In 2007, the Economic development authority (EDA) issued bonds for the purpose of building a recreational facility, with a lease agreement with the YMCA. As part of the lease agreement, the YMCA makes semi-annual rent payments which equate to 1 /3 the cost of the $12,000,000 bonds that were issued. When bonds are issued, a project fund is set up to process the construction costs and to record the bond proceeds and interest earnings on the bond issue. Typically, when projects are complete, if any balance remains in the project fund, the funds are transferred out to the debt service fund. The remaining balance is used to reduce the amount of tax levy on those bonds. The remaining balance from the bond issue and interest earning is $92,964. The EDA has met it's obligation for the project by funding the full $12,000,000 in project costs and the balance remaining is interest earnings on the bonds. However, the YMCA has submitted several items for the EDA to consider funding from the remaining balance stated above. If the EDA chooses to provide the additional funding there are approximately $20,000 to $25,000 in additional expenditures that may qualify as eligible costs. Those would be the file floor base, energy control for sauna, key pad control for roof top air handlers, palm tree play features, and a few miscellaneous items. The balance remaining in the project fund will be used to decrease the property tax burden of this project for taxes payable 2010. The EDA could reduce the levy before September 15`'' and it will be reflected on the proposed tax statements mailed out this fall. The original resolution approved on August 10th was $252,953 and would be reduced by the remaining balance after the EDA considers the above requests. Financial Impact Possible reduction to the payable 2010 market value levy for the EDA portion of the YMCA bonds. S:\Council\Tim\2009\EDAymcaproject.doc