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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2011 <br />NOTE 4 - DETAILED NOTES ON ALL FUNDS (Continued) <br />G. Long -term debt (Continued) <br />From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to <br />private- sector entities for the acquisition and construction of industrial and commercial facilities deemed <br />to be in the public interest. The bonds are secured by the property financed and are payable solely from <br />payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the <br />acquired facilities transfers to the private- sector entity served by the bond issuance. Neither the City, the <br />State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. <br />Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of <br />December 31, 2011, there were eleven series of Industrial Revenue Bonds outstanding, with an aggregate <br />principal amount payable of $69.9 million. <br />H. Prior period adjustments <br />In 2011, the City made a prior period adjustment to more accurately reflect the investment earnings and <br />outstanding loan programs administered by the Greater Metropolitan Housing Council for the Housing <br />Redevelopment Authority. During this same period the City also made a prior period adjustment to more <br />accurately reflect the ownership of grant funds from Ramsey County. <br />Notes receivable $ (1,266,778) <br />Due to other governments 717, 3 24 <br />Change in beginning net assets $ (549,454) <br />NOTE 5 - OTHER INFORMATION <br />A. Risk management <br />The City is exposed to various risks of loss related to torts; theft of damage to, and the destruction of <br />assets; errors and omissions; injuries to employees and natural disasters. During the fiscal years of 1980 <br />and 1987, the City established a Workers' Compensation Fund and a Risk Management Fund, <br />respectively (internal service funds) to account for and finance its uninsured risks of loss. Under this <br />program, for the year 2011, the Worker's Compensation Fund provided coverage up to a maximum of <br />$450,000 for each occurrence. The City purchases excess loss coverage from the Workers' <br />Compensation Reinsurance Association, a nonprofit organization established by Minnesota State <br />Statutes. <br />63 <br />