CCAgenda_04May19 - Laserfiche WebLink

Home Browse Search

• CITY OF FALCON HEIGHTS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2003 NOTE 4 -OTHER INFORMATION A. Risk Management The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust with other cities in the State, a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self- sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, but retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. The City's workers' compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium • adjustment for 2003 is estimated to be immaterial based on workers' compensation rates and salaries for the year. At December 31, 2003, there are no other claims liabilities reported in the Fund based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the fmancial statements and the amount of the loss can be reasonably estimated. B. Employee Retirement Systems and Pension Plans Pension Plans -Primary Government 1. Defined Benefit Pension Plans -Statewide Plan Description All full-time and certain part-time employees of the City of Falcon Heights are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PEKE) and the Public Employees Police and Fire Fund (PEPFF) which are cost- sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Nfinnesota Statutes, Chapters 353 and 356. • 58