1994 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 12. DEFERRED COMPENSATION PLANS (Continued) The five trustees used by the City are The Minnesota State Deferred Compensation Plan, Kemper Investor Life Insurance Company, The Great -West Life Assurance Company, Metropolitan Life Insurance Company and ICMA Retirement Corporation. Assets of the plans are held by the trustees and are reflected in these statements as Agency Funds at market value. ,. Note 13. FLEXIBLE BENEFIT PLAN The City has a flexible benefit plan which is classified as a "cafeteria plan" under Section 125 of the Internal Revenue Code. All full -time and part-time regular employees of the City are eligible. Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the plan for health and dental care, dependent care, life insurance premiums, and disability insurance benefits. Payments are made from the plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. Before the beginning of the plan year, which is from January 1 to December 31, each participant designates a total amount of pre -tax dollars to be contributed to the plan during the year. At December 31, the City is contingently liable for claims against the total amount of participant's annual contributions to the plan, whether or not such contributions have been made. The City serves as trustee and handles all plan record keeping. The plan is included in the financial statements as an Expendable Trust Fund. All plan property and income attributable to that property is solely the property of the City, subject to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to eligible expenses incurred by the participants. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditor's in the future. Note 14. RESERVES AND DESIGNATED FUND EQUITY Fund balance or retained earnings in various funds has been reserved or designated. The following reservations of the fund equity have been made at December 31, 1994: General Fund - Fund balance reserved for prepaid items $ 2,635 Water Utility Fund- Contributed capital reserved for future construction $ 857,994 Sewer Utility Fund - Contributed capital reserved for future construction $ 236,208 The General Fund reservation for prepaid items is made because prepayments, which are included in other assets, are not current financial resources. The Water and Sewer Fund reservations are for future construction and is from assessments for elevated water storage and future oversizing of water and sewer lines.