2011 CAFR - Laserfiche WebLink

Home

CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 NOTE 5 -OTHER INFORMATION (Continued) A. Risk management (Continued) Risk Management Fund Beginning of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability in E stimates Payments Liability 2010 $ 28,906 $ 64,996 $ 22,548 $ 71,354 2011 71,354 (45,767) 3,587 22,000 B. Subsequent events On December 29, 2011, the City closed on $10 million in general obligation bonds to finance the construction of a new fire station and to make various park improvements. This followed a series of events that included the filing of a legal challenge by a local citizens group who disputed the City's authority to issue the bonds without voter approval. The matter of whether voter approval was required was heard in Ramsey County District court on November 21, 2011. The District Court ruled in the City's favor, and the City proceeded with the bond issue. Subsequent to the bond issuance, the same citizens group filed an appeal to the District Court's decision. A hearing before the State Court of Appeals was held on February 8, 2012 and a ruling is pending. The ruling from the Appellate Court is expected no later than May 8, 2012. Until the legal proceedings are complete, the City is holding the bond proceeds in escrow and has disclosed the restricted nature of the proceeds on its financial statements. C. Contingent liabilities The City had the usual and customary types of miscellaneous claims pending at year end mostly of a minor nature, and usually all covered by insurance carried for that purpose or the City has reserved funds for settlement. The City also carries personal injury insurance against suits for false arrest, libel, slander, violation of privacy, wrongful entry, etc. which can arise from enforcement of the city code and general laws. Although the outcome of these lawsuits in not presently determinable, in the opinion of the government's counsel the resolution of these mater will not have a material adverse effect on the financial condition of the government. 65