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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />C. COMMITTED CONTRACTS <br /> <br />At December 31, 2023, the City had commitments of $124,362 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 and omissions, injuries <br />to employees and natural disasters. <br /> <br />Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities <br />Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed <br />necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by <br />law. For workers compensation, the City is not subject to a deductible. The City’s workers compensation coverage is retrospectively <br />rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, <br />if 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 City pays an annual <br />premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures <br />through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the <br />insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial <br />statements. <br /> <br />The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. <br /> <br />There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the <br />past three fiscal years. <br /> <br /> <br />Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS <br /> <br />The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented <br />for these financial statements: <br /> <br />Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the next implementation date <br />being for fiscal years beginning after June 15, 2023. <br /> <br />Statement No. 101 Compensated Absences. The provisions of this Statement are effective for reporting periods beginning after <br />June 15, 2023. <br /> <br />Statement No. 102 Certain Risk Disclosures. The provision of this Statement are effective for fiscal years beginning after June <br />15, 2024. <br /> <br />The effect these standards may have on future financial statements is not determinable at this time. <br /> <br /> <br />80 <br />87