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CITY OF ELK RIVER, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2010
<br />Note 3: DETAILED NOTES ON ALL FUNDS -CONTINUED
<br />Committed to:
<br />Library operations
<br />Ice arena
<br />Senior citizen programs
<br />Economic development
<br />Insurance reserve
<br />OPEB obligation
<br />Total committed
<br />Assigned to:
<br />2011 budget
<br />Subsequent years budgets
<br />Severance pay
<br />Landfill mitigation
<br />Capital equipment
<br />Building construction/improvements
<br />Street improvements
<br />Other improvement projects
<br />Park improvements
<br />Total assigned
<br />Note 4: OTHER INFORMATION
<br />A. Risk Management
<br />General
<br />F,m~
<br />Other
<br />Improvement Governmental
<br />Projects Funds
<br />$ - $
<br />91,502
<br />91,502
<br />- $ 423,356
<br />- 6,743
<br />- 9,003
<br />- 1,726,622
<br />- 341,090
<br />- 2,506,814
<br />$ 336,600 $ -
<br />339,630 -
<br />51,213 =
<br />- 4,431,050
<br />727,443 4,431,050
<br />Total
<br />$ 423,356
<br />6,743
<br />9,003
<br />1,726,622
<br />341,090
<br />91,502
<br />2,598,316
<br />$ - $ 336,600
<br />- 339,630
<br />- 51,213
<br />228,589 228,589
<br />2,294,082 2,294,082
<br />3,478,897 3,478,897
<br />5,112,597 5,112,597
<br />1,256,876 5,687,926
<br />181,970 181,970
<br />12,553,011 17,711,504
<br />The City is exposed to various risks of loss related to torts; theft of damage to and destruction of assets; errors and
<br />omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance
<br />through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with
<br />approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation
<br />and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for
<br />claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage
<br />in any of the past three fiscal years.
<br />Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
<br />estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IB1VRs). The City's
<br />management is not aware of any incurred but not reported claims.
<br />B. Contingent Liabilities
<br />Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally
<br />the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the
<br />applicable funds. The amount, if any, of expenditures that maybe disallowed by the grantor cannot be determined at this
<br />time, although the government expects such amounts, if any, to be immaterial.
<br />The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA).
<br />Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. The City's
<br />management is not aware of any instances of noncompliance which would have a material effect on the fmancial
<br />statements.
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