6.2. SR 06-17-2019 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 NOTE 13: OTHER INFORMATION — CONTINUED E. Commitments (Continued) participant cash distributions in 2018 is under recovery. The projected under recovery in 2018 is estimated to be $250,000 - $300,000. The bond obligations are satisfied first and distributions to participants are directly affected by under recovery. The under recovery is rolled forward under the true -up. However, the estimated under recovery in 2018 would be included in the recovery requirements in 2020. The transmission payments for 2018 were $13,766, of which $3,306 was receivable at December 31, 2018. F. Joint Ventures The City has agreements with government and other entities which provide reduced costs, better service and additional benefits to the participants. In 2007, the City and neighboring municipalities formed the Sherburne/Wright Cable Communications Commission (the "Commission"). The purpose of the organization is to monitor the operation and activities of cable communications of the member municipalities. The Commission also provides coordination, administration and enforcement of the franchises for the cable communication system. Financial statements for the Commission can be obtained by writing to: Sherburne/Wright Cable Communications Commission at 444 Cedar St, Suite 950, St. Paul, MN 55101. NOTE 14: TAX ABATEMENTS The City of Elk River has established a tax abatement program pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815. As part of the program the City enters into agreements through the use of tax increment financing districts under Minnesota Statutes Section 469.174 to 469.179 (the Tax Increment Act). Under these statutes the City annually abates taxes collected above the district's base tax capacity which is established during adoption of the Tax increment district. These agreements are established to foster economic development and redevelopment through creating jobs, removing blight and providing affordable housing. For fiscal year ending December 31, 2018, the City has three agreements established under Minnesota Statutes Section 469.174 to 469.179 which resulted in property taxes totaling $265,184 being abated. Individual abatement payments which constituted more than 1% of the City's 2018 tax levy include: • A pay-as-you-go note resulting in an abatement amount of $131,083 for a financial institution. • A pay-as-you-go note resulting in an abatement amount of $134,101 for an industrial developer. As part of the City's tax abatement program, the City also enters into agreements with local businesses in the form of business subsidy agreement established under Minnesota Statutes Section I I6J.993 through I I6J.995. These agreements must meet a public purpose which may include, by may not be limited to, increasing the tax base. In 2018 the City of Elk River had eight business subsidy agreements in place which resulted in property taxes totaling $171,290 being abated. Individual agreements which result in taxes abated in excess of 1% of the City's total tax levy would be disclosed individually. There were no such payments made in 2018 in excess of this amount. 73