Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2009 <br />I I 1 i Man <br />Note 15 RISK MANAGEMENT <br />The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and <br />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 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 />Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. The City <br />pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the <br />— LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City <br />retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. <br />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 16 CONDUIT DEBT OBLIGATIONS <br />The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial <br />assistance to private- sector entities for the acquisition and construction of industrial and commercial facilities which <br />are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from <br />payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities <br />transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the <br />— repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial <br />statements. As of December 31, 2009, two series of Industrial Revenue Bonds were outstanding with aggregate <br />remaining principal balances of $985,000 and $1,200,000, respectively, and one series Commercial Revenue Notes <br />was outstanding with an aggregate remaining principal balance of $3,028,831. <br />Note 17 LEASE COMMITMENT <br />The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall <br />NimM <br />complex to the Independent School District No. 12 (ISD 12). The lease term has been renewed as of July 1, 2009 <br />and continues through June 30, 2011 and requires payments of $110 per square foot over the lease term for a total <br />of $300,000. The schedule of remaining payments is as follows: <br />Amount <br />2010 $ 120,000 <br />2011 60,000 <br />Total $ 180,000 <br />