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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2016 <br /> <br /> <br /> <br /> <br />C. COMMITTED CONTRACTS <br /> <br />At December 31, 2016, the City had commitments of $379,727 for uncompleted construction contracts. <br /> <br /> <br />Note 18 RISK MANAGEMENT <br /> <br />The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors <br />and omissions, injuries to employees and natural disasters. <br /> <br />Workers compensation coverage is provided through a pooled self-insurance program through the League of <br />Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject <br />to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers <br />Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not <br />subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of <br />coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if <br />any, is considered immaterial and not recorded until received or paid. <br /> <br />Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The <br />City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed <br />necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various <br />amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from <br />the insurance policies. These amounts are considered immaterial to the financial statements. <br /> <br />The City continues to carry commercial insurance for all other risks of loss, including disability and employee <br />health insurance. <br /> <br />There were no significant reductions in insurance from the previous year or settlements in excess of insurance <br />coverage for any of the past three fiscal years. <br /> <br /> <br />Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS <br /> <br />The Governmental Accounting Standards Boards (GASB) recently approved the following statements which <br />were not implemented for these financial statements: <br /> <br />Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not <br />within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and <br />68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 – except <br />those provisions that address employers and governmental nonemployer contributing entities for pensions <br />that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, <br />2016. <br /> <br />Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The <br />provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016. <br /> <br />Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. <br />The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017. <br />82