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CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014. NOTE 7 RISK MANAGEMENT The. City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City carries commercial insurance for all risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past: three fiscal years. NOTE 8 FUND BALANCES Certain portions of fund balance are restricted to provide for funding on certain long-term liabilities or as required by other outside. parties. Restricted, Committed and Assigned fund balances at December 31, 2014, are as follows: A. Restricted for Debt. Service. — This represents amounts which are restricted for future debt payments. B. Restricted for Park Improvements: — Represents amounts which are received' through park. dedication fees and are restricted for park acquisitions and. improvements. C. Restricted for Street Projects -- Represents amounts which are received from special assessments and are restricted for street projects.. D. Assigned for .Capital improvements Benefitting Individual Property Owners. — Represents amounts which are assigned by the City to finance future road improvement projects benefitting. individual property owners, NOTE 9 SUBSEQUENT EVENT In April 2015, the City has approved the sale of $775,000 in General Obligation Refunding Bonds. Series 2015A to refunding the outstanding portions: of the 200.7A General Obligation Capital Improvement Bonds with .maturities of February 1; 2016 acid after. This `refunding will result in a .decrease in total debt service payments of $68,303 with a net: present value of $60,393. over the remaining life of 111e bonds. (29)