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<br />CITY OF ARDEN HILLS, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 31 <br /> <br />. Note 5: OTHER INFORJ\L'\.TION - CONTINUED <br /> <br />Ice Arena Financing <br /> <br />D.....~ <br />.<~ <br /> <br /> <br />AFT <br /> <br />C. Commitments <br /> <br />The City, along with three other cities and Ramsey Coun~teredoinm",=greemenp..Januarycly"199~ e <br />Minnesota Amateur Sports Commission to provide fmancing of a four sheet ice arena. Tbe agreement provides for <br />rental income to cover principal~ interest and operating expenses. In the case of default, each City will be <br />responsible for a specific portion of the debt. The City's percentage is 15.5 percent of one of the four sheets and the <br />amount of the debt will not exceed $9,000,000 for all four sheets in the complex. No expenditures were incurred <br />under this commitment in 2005. <br /> <br />D. Lake Johanna Volunteer Fire Department~ Inc. <br /> <br />The City receives fIre protection under a contract with the Lake Johanna Volunteer Fire Department, Inc. The <br />contract calls for annual payments and expires December 31, 2008 and allows renewal for m'o additional five-year <br />periods. The contract cost will be based on the budget submitted by the fIre department and approved by the City. <br />Capital costs are billed separately in addition to the contract rate. The amount expended under the contract was <br />$230,936 in 2005. <br /> <br />E. Employee Theft <br /> <br />. <br /> <br />During 2005, the City pressed charges against Sandra Berres, Senior Accounting Clerk, for misappropriation of <br />assets. This employee was terminated in August 2005. In March 2006, the cbarged individual plead guilty to five <br />counts of theft by swindle in the amount of nearly $225,000. The theft had taken place over five years. The City <br />expects to receive from insurance the entire amount less their deductible in 2006. <br /> <br />Note 6: PRIOR PERIOD ADJUSTMENT <br /> <br />A prior period adjustment was made to the beginning equity balances as folIov....s: <br /> <br />Fund <br /> <br />Fund Balance <br />January 1,2005 <br />as Previously <br />Reported <br /> <br />Prior Period <br />Adjustment! <br />Restatement <br /> <br />Fund Balance <br />January 1,2005 <br />as Restated <br /> <br />Governmental activities <br /> <br />$ 17.822.409 <br /> <br />$ <br /> <br />901,778 <br /> <br />$ 18,724.187 <br /> <br />The City reviewed the cost reported on a parcel of land and detennined it was not accurate. <br /> <br />. <br /> <br />-38- <br />