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City of Elk River
<br />Notes to Basic Financial Statements
<br />NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
<br />C. Deposits and Investments (Continued)
<br />Deposits and investments are presented in the December 31, 2021, basic financial statements as follows:
<br />Statement of Net Position
<br />Cash and investments
<br />Cash and investments held by trustee
<br />Restricted cash
<br />Total deposits and investments
<br />Primary Component
<br />Government Unit HRA Total
<br />$ 93,424,447
<br />7,081,831
<br />1,779,016
<br />$ 775,500
<br />$94,199,947
<br />7,081,831
<br />1,779,016
<br />$ 102,285,294 $ 775,500 $ 103,060,794
<br />NOTE 4 — NOTES RECEIVABLEXONTRACT FOR DEED
<br />The City has made several business subsidy loans to local businesses, some of which were funded with
<br />grant proceeds received from the state and federal governments. The terms of repayment vary with each
<br />loan and will be repaid over a period of 10 years. Under the terms of the grant agreement, the City
<br />retains the grant repayments. Notes receivable of $254,490 in the Revolving Loan fund and $333,907 in
<br />the State DEED fund are outstanding at December 31, 2021.
<br />In 2015, the City issued a $1,288,589 long-term note receivable related to the sale of property to a
<br />developer under an abatement agreement. The note shall be payable in semiannual installments as tax
<br />abatement revenues are received, commencing on August 1, 2017, and maturing February 1, 2037. A
<br />note receivable of $813,048 in the Development Fund is outstanding at December 31, 2021.
<br />In 2021, the City entered into a $320,000 contract for deed for property, equipment, and buildings
<br />located at property commonly referred to as Pinewood Golf Course, located in Elk River, Minnesota.
<br />The contract for deed is to be repaid annually at 4% interest beginning July, 2022. The contract for deed
<br />matures on August 1, 2037. The balance of this contract for deed is $320,000 at December 31, 2021.
<br />In 2006, the HRA issued a loan to a developer to assist in the financing of a housing development for the
<br />benefit of low and moderate income residents which was funded with state grant proceeds. Repayment
<br />of the loan is deferred for 30 years, payable in one lump sum at an interest rate of 1%. Notes receivable
<br />of $400,000 in the HRA is outstanding at December 31, 2021.
<br />In 2015, the HRA issued loans to applicants under the rehabilitation loan program. The terms of each
<br />loan vary and are payable over five to 15 years with rates from 1.25% to 3.25%. Notes receivable of
<br />$74,338 in the HRA are outstanding at December 31, 2021.
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