Annual_Report_1988_001 - Laserfiche WebLink

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CITY OF ROSEVILLE, MINNESOTF NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEM6ER 31.1988 Note 19 - Risk Manaqement Fund The City estahLished in 1987, a Risk Management Fund (an Internal Service Fund) to account for setf-insur- ance coverage. Under this program, the City is seLf-insured up to a maximum of SS0,00� deductible on gener- at Lia6itity and property damage with a maximum of 5�00,000 per annum. Claims in excess of these amounts are fuLLy insured through the League of Minnesota Cities Insurance 7rust. Pund revenues are primariLy property tax Levies, premium rebates and interest earnings, and are ptanned To match expenses of insurance premiums for coverage in excess of seLf-insured amounts, daims resuLting from the setf-insurance program, and oper- ating expenses. Note 20 - Deferred Compensation Plan The City offers its emptoyees a deferred compensation pLan estabtished i❑ accordance with Internal Revenue Code Section 457. The ptan, avaiLa6le to alt empLoyees, permits them to defer a portion ot their salary until future years. The deferred compensation is not avaiLa6le to empLoyees untiL termination, retirement, death or unforeseeabte emergency�. Alt amounts of compensation deferred under the ptan, att property and rights property purchased wiTh those amounts, and all income attributable to those amounts, or rights are (untiL paid or made avaitable to the employee or other beneficiary) solely the property and rights of the City, subject onLy to the ctaims of the CiYy's generaL creditors. Participa�ts' rights under the pLan are equat to those ot the City in an amount equal to the fair market vaLue of the deferred account for each participant. It is the opinion of the City's legal counset that the City has no tiabiLity for losses under the plan 6ut does have the duty of due care that would 6e required of an ordinary prudent investor. The City �- betieves that it is untikely that it Wilt use the assets to satisfy the claims of generaL creditors in the future. PLan assets of 5507,658 at Decem6er 31, 1988 are shown in the financial statement as a'�eposits uith � Trustees' in the agency funds with a corresponding credit to deposits payabLe. Note 21 - Litioation � The City had the usuat and customary types of miscellaneous daims pending at year end, mostty of a minor � nature, and usualty atl covered 6y insurance carried tor that purpose or the City has reserved funds for settlemeni. The City aLso wrries personal injury insurance against suits for faLse arrest, libet, slander, viotation of privacy, urongfuL entry, etc., Which suits can arise from enforcement of the city code and general � lavs. The City is a defendant in pending litiga2ion on a case of wrongful discharge and age discrimination. In the opinion of legaL counseL, the City shouLd prevaiL in this matter. Note 22 - Su6sequent Events On March 1, 1989, the City soLd 83.5 mitlion general obtigation improvement bonds. The bonds are due in annuat installments of 5150,000 - 5355,000 through March 1, 2004; at a net interest rate of 7.0)%. $1