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NOTE 14 — COMMITMENTS AND CONTINGENCIES A. Commitments for Construction At December 31, 2008, the City is committed to various construction contracts for the improvement of city property, The City's remaining commitment under these contracts is $312,154, The City has resources available to cover these commitments. B. Federal and State Revenue Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. C. Legal Claims The City has the usual and customary type of miscellaneous legal claims pending at year -end. Although the outcome of these lawsuits is not presently determinable, the City's management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City's financial statements relating to these claims. NOTE 15 — SUBSEQUENT EVENTS On March 17, 2009, the Ramsey City Council authorized a purchase agreement for the purchase of 150 acres of undeveloped property in the Ramsey Town Center project area. The cost to the City will be $6.75 million and the removal of $7.2 million in special assessments. These special assessments will be reallocated as the land is sold to developer(s). -47-