2006 CAFR - Laserfiche WebLink

Home

CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 NOTE 4 - DETAILED NOTES ON ALL FUNDS (Continued) G. Long -term debt (Continued) From time to time, the City has issued Industrial revenue Bonds to provide financial assistance to private - sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private - sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2006, there were ten series of Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of $61 million. H. Restricted assets The balances of the restricted asset accounts in the enterprise funds are as follows: Customer deposits -Water fund $ 778,894 NOTE 5 - OTHER INFORMATION A. Risk management The City is exposed to various risks of loss related to torts; theft of damage to, and the destruction of assets; errors and omissions; injuries to employees and natural disasters. During the fiscal years of 1980 and 1987, the City established a Workers' Compensation Fund and a Disk Management Fund, respectively (internal service funds) to account for and finance its uninsured risks of loss. Under this program, for the year 2006, the Worker's Compensation Fund provided coverage up to a maximum of $390,000 -for each occurrence. The City purchases excess loss coverage from the Workers' Compensation Reinsurance Association, a nonprofit organization established by Minnesota State Statutes. 31.1