6.1. SR 06-06-2016 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2015 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Cash and investments are presented in the financial statements as follows: Statement of Net Position Cash and investments Restricted cash and investments Cash with fiscal agent Statement of Fiduciary Net Assets Cash and investments Total B. Notes Receivable Primary Component Government Unit - HRA $ 58,409,025 $ 1,173,921 490,500 - 9,423,440 - 115,073 - $ 68,438,038 $ 1,173,921 The City has made several business subsidy loans to local businesses, some of which were funded with grant proceeds received from the state and federal governments. The terms of repayment vary with each loan and will be repaid over a period of ten years. Under the terms of the grant agreement, the City retains the grant repayments. Notes receivable of $56,046 in the TIF Districts fund, $286,963 in the Revolving Loan fund and $317,909 in the State DEED fund are outstanding at December 31, 2015. The Federal DEED fund loaned $311,155 to several businesses through the Forgivable Loan Program targeting manufacturing, industrial, and high-tech businesses to stimulate private sector investment. The notes are deferred until the businesses have complied with the note agreements for a minimum of one year, at which time the note is then forgiven. In 2015, the City issued a $1,288,589 long-term note receivable related to the sale of property to a developer under an abatement agreement. The note shall be payable in semiannual installments as tax abatement revenues are received, commencing on August 1, 2017, and maturing February 1, 2037. A note receivable of $1,288,589 in the Development Fund is outstanding at December 31, 2015. In 2006, the HRA issued a loan to a developer to assist in the financing of a housing development for the benefit of low and moderate income residents which was funded with state grant proceeds. Repayment of the loan is deferred for 30 years, payable in one lump sum at an interest rate of one percent. Notes receivable of $400,000 in the HRA is outstanding at December 31, 2015. In 2015, the HRA issued loans to applicants under the rehabilitation loan program. The terms of each loan vary and are payable over 5-15 years with rates from 1.25-3.25 percent. Notes receivable of $139,413 in the HRA are outstanding at December 31, 2015. -63-