Laserfiche WebLink
CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2014 <br /> <br /> <br /> <br />(29) <br /> <br />NOTE 7 RISK MANAGEMENT <br />The City is exposed to various risks of loss related to torts; theft of, damage to and <br />destruction of assets; errors and omissions; injuries to employees; and natural disasters. <br />The City carries commercial insurance for all risks of loss, including disability and employee <br />health insurance. <br /> <br />There were no significant reductions in insurance from the previous year or settlements in <br />excess of insurance coverage for any of the past three fiscal years. <br /> <br /> <br />NOTE 8 FUND BALANCES <br />Certain portions of fund balance are restricted to provide for funding on certain long-term <br />liabilities or as required by other outside parties. Restricted, Committed and Assigned fund <br />balances at December 31, 2014, are as follows: <br /> <br />A. Restricted for Debt Service – This represents amounts which are restricted for <br />future debt payments. <br /> <br />B. Restricted for Park Improvements – Represents amounts which are received <br />through park dedication fees and are restricted for park acquisitions and <br />improvements. <br /> <br />C. Restricted for Street Projects – Represents amounts which are received from <br />special assessments and are restricted for street projects. <br /> <br />D. Assigned for Capital Improvements Benefitting Individual Property Owners – <br />Represents amounts which are assigned by the City to finance future road <br />improvement projects benefitting individual property owners. <br /> <br /> <br />NOTE 9 SUBSEQUENT EVENT <br />In April 2015, the City has approved the sale of $775,000 in General Obligation Refunding <br />Bonds Series 2015A to refunding the outstanding portions of the 2007A General Obligation <br />Capital Improvement Bonds with maturities of February 1, 2016 and after. This refunding <br />will result in a decrease in total debt service payments of $68,303 with a net present value <br />of $60,393 over the remaining life of the bonds. <br />