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CITY OF ELiC RIVER, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2011 <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 />2012 budget <br />Subsequent years budgets <br />Landfill mitigation <br />Law enforcement <br />Debt service <br />Economic development <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 Improvement <br />Fund Projects <br />Other <br />Governmental <br />Funds Total <br />$ <br />$ <br />$ 442,183 <br />$ 442,183 <br />- <br />13,755 <br />13,755 <br />- <br />10,508 <br />10,508 <br />- <br />- <br />1,985,961 <br />1,985,961 <br />- <br />- <br />260,238 <br />260,238 <br />156,323 <br />- <br />156,323 <br />$ <br />156,323 <br />$ <br />$ 2,712,645 <br />$ 2,868,968 <br />$ <br />366,150 <br />$ <br />$ - <br />$ 366,150 <br />493,358 <br />- <br />- <br />493,358 <br />- <br />- <br />682,208 <br />682,208 <br />- <br />222 <br />222 <br />- <br />18,265 <br />18,265 <br />- <br />158,769 <br />158,769 <br />- <br />- <br />2,500,571 <br />2,500,571 <br />- <br />5,507,987 <br />5,507,987 <br />- <br />4,977,180 <br />4,977,180 <br />- <br />4,427,389 <br />1,276,255 <br />5,703,644 <br />- <br />- <br />187,949 <br />187,949 <br />$ <br />859,508 <br />$ 4,427,389 <br />$ 15,309,406 <br />$ 20,596,303 <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 (IBNRs). 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 may be 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 financial <br />statements. <br />56 <br />