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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2022 <br /> <br /> <br /> <br /> <br />C. COMMITTED CONTRACTS <br /> <br />At December 31, 2022, the City had commitments of $240,469 for uncompleted construction contracts. <br /> <br /> <br />Note 16 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 to <br />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 17 ADOPTION OF NEW ACCOUNTING STANDARDS <br /> <br />The City implemented GASB Statement No. 87, Leases, for the year ended December 31, 2022. As a result, <br />leases receivable and deferred inflows of resources related to leases are recorded within the governmental funds <br />balance sheet and the government-wide statement of net position. Comparative amounts for the year ended <br />December 31, 2021 have been restated within the management’s discussion and analysis as a result of <br />implementation. There was no impact on net position or fund balance due to implementing the standard. <br /> <br />In addition, the City implemented GASB Statement No. 100, Accounting Changes and Error Corrections, for the <br />year ended December 31, 2022. See Note 18 for further details. <br /> <br /> <br />83