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loom <br />Wow <br />WINN <br />CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1998 <br />Note 16 RISK MANAGEMENT <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 />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 <br />not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type <br />of coverage, final premiums are determined after loss experience is known. The amount of premium <br />adjustment, if any, is considered immaterial and not recorded until received or paid. <br />Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. <br />The 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 <br />various amounts. The City retains risk for the deductible portion of the insurance policies and for any <br />exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. <br />The City continues to carry commercial insurance for all other risks of loss, including disability and employee <br />health insurance. <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 />Note 17 COMMITTED CONTRACTS <br />At December 31, 1998, the City had the following commitments for uncompleted construction contracts: <br />Fund / Project Amount <br />Area and Unit Fund <br />4"' Avenue Trunk $ 4,048 <br />Lilac Street Trunk 11,235 <br />MSA Construction Fund <br />Ware Road 29,456 <br />Sealcoating and Wearcourse Fund <br />98 Wearcourse 35,652 <br />Civic Complex Fund <br />Civic Complex 2,228,528 <br />1997 Construction Fund <br />Otter Lake Road Realignment 583,907 <br />1998 Construction Fund <br />Lake Drive Trunk Utilities 432,821 <br />Lake's Addition Road Construction 82,534 <br />53 <br />