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CITY OF LAKE ELMO, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 71 NOTE 6 OTHER NOTES (Continued) 6.B. OTHER EMPLOYEE BENEFITS The City provides eligible employees future retirement benefits through participation in the Minnesota Deferred Compensation Plan (MNDCP), which is a Section 457 plan administered by the Minnesota State Retirement System. Eligible employees of the City may begin participating in the MNDCP commencing on the date of their employment by electing to have a portion of their pay contributed to the Plan. Certain employees are eligible to receive a City match of employee contributions up to the qualifying amounts set forth in their employment contracts, and there are no vesting requirements related to such contributions. The City’s contributions to the plan total $3,334 for the year ended December 31, 2024. 6.C. COMMITMENTS During the year, the City entered into various contracts for construction services. At December 31, 2024, remaining commitments related to these projects total $358,572. 6.D. CONTINGENCIES The City has received notice from the Minnesota Department of Natural Resources (DNR) indicating that the volume of water being drawn from City wells has exceeded the amount appropriated to the City under the corresponding permit. The City is currently pursuing options for obtaining an increase to this appropriation but may be subject to fines imposed by the DNR. At this time, the range of such fines cannot be reasonably determined. 6.E. SUBSEQUENT EVENTS Subsequent to year end but prior to the issuance of these financial statements, the City accepted bid s for two construction projects, totaling $2,073,385. Additionally, the City purchased land for future park lands and ballfields developments in the amount of $2,930,752. This is partially being funded by a $2,000,000 interfund loan from the Sewer Fund.