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C. Legal Claims CITY OF RAMSEY Notes to Financial Statements (continued) December 31, 2002 NOTE 18 — COMMITMENTS AND CONTINGENCIES (CONTINUED) 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. D. Centralized Law Enforcement Records System The City of Ramsey has entered into an agreement with the County of Anoka, and the following cities located within the county: Anoka, Blaine, Circle Pines, Centerville, Columbia Heights, Coon Rapids, Fridley, Lexington, Lino Lakes, St. Francis (including Bethel), and Spring Lake Park. The purpose of this agreement is to provide for the joint financing of a centralized law enforcement records system and to provide for the sharing of the ongoing costs of the system. Under the terms of the agreement, the City of Ramsey has committed to pay the County approximately 5% of the combined total shared costs of the participating entities annually beginning in fiscal year 2000 for a period of four years. NOTE 19 — SUBSEQUENT EVENT Bond Issuance On January 28, 2003, the City issued $945,000 of General Obligation Tax Increment Refunding Bonds, Series 2003A with interest rates ranging from 1.20% to 2.25 %. These bonds are backed by a full faith and credit of the City. NOTE 20 — FUTURE REPORTING REQUIREMENT The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements -and Management's Discussion and Analysis -for State and Local Governments in June 1999. This is one of the most significant changes to occur in the history of governmental financial reporting. The basic financial statements, consisting of the government -wide financial statements, fund financial statements and notes to the financial statements will replace the current general purpose financial statements. The government -wide financial statements, consisting of a statement of net assets and a statement of activities will be prepared using the economic resource measurement focus and the accrual basis of accounting. Fund financial statements will consist of a series of statements that focus on information about the City's major funds. Certain additional disclosures relating to GASB Statement No. 34 will be required in the notes to the financial statements. The City will implement GASB Statement No. 34 for fiscal year ending December 31, 2004. -36-