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NOTE 14 - COMMITMENTS AND CONTINGENCIES <br /> <br />A. Commitments for Construction <br /> <br />At December 31, 2005, the City is committed to various construction contracts for the improvement of <br />city property. The City's remaining commitment under these contracts is $2,556,175. <br /> <br />B. Federal and State Revenue <br /> <br />Amounts received or receivable from federal and state agencies are subject to agency audit and <br />adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the <br />applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot <br />be determined at this time, although the City expects such amounts, if any, to be immaterial. <br /> <br />C. Legal Claims <br /> <br />The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although <br />the outcome of these lawsuits is not presently determinable, the City's management believes that the City <br />will not incur any material monetmy loss resulting from these claims. No loss has been recorded on the <br />City's financial statements relating to these claims. <br /> <br />NOTE 15 - SUBSEQUENT EVENTS <br /> <br />In January 2006 the City sold $1,035,000 of General Obligation Taxable Tax Increment Bonds Series <br />2006A. The proceeds will be used to finance the acquisition of a property known as B & A Cylinder. <br /> <br />-49- <br /> <br /> <br />