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CITY OF ROSEVILLE, MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2016 <br /> <br /> <br /> <br /> <br /> exceeded this coverage in any of the past three fiscal years. There were no significant reductions in <br /> the City's insurance coverage in 2016. <br /> <br /> Enterprise fund charges and the property tax levy are based on a management estimate of claims <br /> history and the amount necessary to maintain catastrophic reserves. The reserves as of December 31, <br /> 2016, were $1,282,264 and $1,342,253 for the Workers' Compensation Fund and Risk Management <br /> Fund, respectively. The claims liability of $26,372 and $235,926, respectively, reported in both <br /> funds at December 31, 2016 are based on the requirements of Governmental Accounting Standards <br /> Board Statement No. 10. This statement requires that a liability for claims be reported if information <br /> prior to the issuance of the financial statements indicates it is probable that a liability has been <br /> incurred at the date of the financial statements and the amount of the loss can be reasonably estimated <br /> (IBNR). Changes in the funds' claims liability amount in fiscal 2015 and 2016 were: <br /> <br />Workers' Compensation Fund <br />Beginning of Current Year Ending of <br />Fiscal Year Claims and Changes Claims Fiscal Year <br />Liability in Estimates Payments Liability <br />2015 141,594$ 55,438$ 119,298$ 77,734$ <br />2016 77,734 (3,377) 47,985 26,372 <br /> <br />Risk Management Fund <br />Beginning of Current Year Ending of <br />Fiscal Year Claims and Changes Claims Fiscal Year <br />Liability in Estimates Payments Liability <br />2015 563,913$ (76,617)$ 210,425 $ 276,871$ <br />2016 276,871 88,163 129,108 235,926 <br /> <br /> <br /> B. Contingent liabilities <br />The City had the usual and customary types of miscellaneous claims pending at year-end mostly of a <br />minor nature, and usually all covered by insurance carried for that purpose or the City has reserved <br />for settlement. The City also carries personal injury insurance against suits for false arrest, libel, <br />slander, violation of privacy, wrongful entry, etc. which can arise from enforcement of the city code <br />and general laws. Although the outcome of these lawsuits in not presently determinable, in the <br />opinion of the government’s legal counsel the resolution of these mater will not have a material <br />adverse effect on the financial condition of the government. <br /> <br /> <br /> <br /> <br />61 <br />Item 8: Attachment D