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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANClAL STATEMENTS December 31, 2015 exceeded this coverage in any of the past three fiscal years. There were no significant reductions in the City's insurance coverage in 2015. 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, 2015, were $1,256,255 and $1,257,254 for the Workers' Compensation Fund and Risk Management Fund, respectively. The claims liability of $77,734 and $276,871, respectively, reported in both funds at December 31, 2015 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 iinancial 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 fisca12014 and 2015 were: Workers' Compensation Fund Begitu�ig of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability 2014 $ 224,774 $ 2015 141,594 in Estirnates Payments Liability 12,396 $ 95,576 $ 141,594 55,438 119,298 77,734 Risk Management Fund Beginnu7g of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liabiliry 2014 $ 205,239 $ 2015 563,913 B. Contingent liabilities in Estn�ates Payments Liability 779,847 $ 421,173 $ 563,913 ��6,61�� zlo,4zs z�6,g�1 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 of the government's legal counsel the resolution of these mater will not have a material adverse effect on the �nancial condition of the government. 62