6.1. SR 06-07-2021 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2020 NOTE 3 DEPOSITS AND INVESTMENTS (CONTINUED) C. Investments (Continued) Fair Value Measurements (Continued) Level 2 — Financial assets and liabilities are valued based on quoted prices for similar assets or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 3 — Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset. Investment Type Level 1 Level 2 Level 3 Total U.S. Treasuries with Maturities at Purchase of Greater Than 1 Year $ 7,131,552 $ - $ $ 7,081,830 Negotiable Certificates of Deposit - 3,723,465 3,723,465 Municipal Bonds - 27,967,309 27,967,309 Total Investments Measured at Fair Value $ 7,131,552 $ 31.690. 774 $ - Investments Measured at Net Asset Value (NAV) Investments Measured at Amortized Cost Total Investments NOTE 4 NOTES RECEIVABLE 40,351,702 79,124,306 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 10 years. Under the terms of the grant agreement, the City retains the grant repayments. Notes receivable of $342,334 in the Revolving Loan fund and $374,525 in the State DEED fund are outstanding at December 31, 2020. 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 $909,718 in the Development Fund is outstanding at December 31, 2020. 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 1 %. Notes receivable of $400,000 in the HRA is outstanding at December 31, 2020. In 2015, the HRA issued loans to applicants under the rehabilitation loan program. The terms of each loan vary and are payable over five to 15 years with rates from 1.25% to 3.25%. Notes receivable of $159,584 in the HRA are outstanding at December 31, 2020. (51)