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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 exceeded this coverage in any of the past three fiscal years. There were no significant reductions in the City's insurance coverage in 2016. Enterprise fund charges and the property tax levy are based on a management estimate of claims history and the amount necessary to maintain catastrophic reserves. The reserves as of December 31, 2016, were $1,282,264 and $1,342,253 for the Workers' Compensation Fund and Risk Management Fund, respectively. The claims liability of $26,372 and $235,926, respectively, reported in both funds at December 31, 2016 are based on the requirements of Governmental Accounting Standards Board Statement No. 10. This statement requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated (IBNR). Changes in the funds' claims liability amount in fiscal 2015 and 2016 were: Workers' Compensation Fund Beguuiuig of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability 2015 $ 141,594 $ 2016 77,734 in Estirnates 55,438 (3,377) Payments $ 119,298 47,985 Liability $ 77,734 26,372 Risk Management Fund Beginnu7g of Current Year Ending of Fiscal Year Clairns and Changes Claitns Fiscal Year Liability 2015 $ 563,913 $ 2016 276,871 B. Contingent liabilities in Estimates (76,617) 88,163 Payments Liability $210,425 $ 276,871 129,108 235,926 The City had the usual and customary types of miscellaneous claims pending at year-end mostly of a minor nature, and usually a11 covered by insurance carried for that purpose or the City has reserved 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 legal counsel the resolution of these mater will not have a material adverse effect on the financial condition of the government. 61