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CITY OF RAMSEY <br />Notes to Financial Statements (continued) <br />December 31, 1998 <br />NOTE 17 -FUND CHANGES <br />The following funds were created during the fiscal year ended December 31, 1998: <br />Special Revenue Funds <br />Community Development Block Grant <br />Capital Project Funds <br />1998 Street Maintenance <br />Senior Housing <br />NOTE 18 -INDUSTRIAL REVENUE BONDS <br />From time to time, the City has issued Industrial Revenue Bonds and Housing Development Revenue Bonds <br />to provide financial assistance to private sector entities for the acquisition and construction of industrial and <br />commercial facilities deemed. to be in the public interest. The bonds are secured by the property financed <br />and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the <br />bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. <br />Neither the City, the State, or any political subdivision thereof is obligated in any manner for repayment of <br />the bonds. Accordingly, the bonds are. not reported as liabilities in the accompanying financial statements. <br />As of December 31, 1998, there were two series of Industrial Revenue Bonds outstanding and one Housing <br />Development Revenue Bond outstanding with aggregate principal amounts payable of $155,000 and <br />$3,000,000, respectively. <br />NOTE 19 -COMMITMENTS AND CONTINGENCIES <br />A. Commitments for Construction <br />At December 31, 1998, the City is committed to various construction contracts for the improvement of City <br />property. The City's remaining commitment under these contracts is $351,468. <br />B. Federal and State Revenue <br />Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. <br />Any disallowed claims, including amounts already collected, may constitute a liability of the applicable <br />funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined <br />at this time, although the City expects such amounts, if any, to be immaterial. <br />C. Litigation <br />At the present time, there is no significant litigation pending which is not covered by the City's insurance. <br />-34- <br />