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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />Note 11 DEFICIT FUND BALANCES/NET POSITION <br /> <br />The City reported deficit fund balances/net position at December 31, 2023 as follows: <br /> <br />Fund Amount <br /> <br />Nonmajor funds: <br />Internal Service Fund $7,085,593 <br /> <br />The Internal Service Fund includes the state retirement plans and OPEB and the retirement of pension and OPEB <br />deficits are dependent upon variables, including contribution rates, investment earnings, and actuarial assumptions. <br /> <br /> <br />Note 12 CONTINGENCIES <br /> <br />A. RISK MANAGEMENT <br /> <br /> The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; <br />errors and omissions; injuries to employees; and natural disasters. <br /> <br /> Workers compensation coverage is provided through a pooled self-insurance program through the League <br />of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City <br />is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through <br />Workers Compensation Reinsurance Association (WCRA) as required by law. The City has no deductible <br />and a managed care program to assist employees with their rehabilitation plan. Annual employee hours of <br />service are audited and final premiums are then determined. The amount of premium adjustment, if any, is <br />considered immaterial and not recorded until received or paid. <br /> <br /> Property, casualty and automobile insurance coverage are provided through a pooled self-insurance <br />program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to <br />supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial <br />companies for claims in excess of various amounts. The City retains risk for the deductible portions. <br />These deductibles are considered immaterial to the financial statements. <br /> <br /> The City continues to carry commercial insurance for all other risks of loss, including liquor liability, <br />employee health and disability insurance. <br /> <br /> There were no significant reductions in insurance from the previous year. The City did not have significant <br />settlements in excess of insurance coverage for any of the past three fiscal years. <br /> <br /> <br />B. LITIGATION <br /> <br />Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered <br />by insurance; of an immaterial amount; or, in the judgement of the City management, remotely recoverable <br />by plaintiffs. <br /> <br /> <br />80