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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2013 <br />Note 15 RISK MANAGEMENT (CONTINUED) <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, 2013, one series of Industrial Revenue Bonds was outstanding with an aggregate <br />remaining principal balance of $540,000, and one series of Commercial Revenue Notes was outstanding with an <br />aggregate remaining principal balance of $2,152,037. <br />Note 17 JOINT VENTURES <br />Fire <br />The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino <br />Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but <br />not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two <br />commissioners to the District's Board. <br />56 <br />