1997 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31,1997 Note 16. FUND CHANGES The following funds were created during the fiscal year ended December 31, 1997: itap 1 Project Funds Comprehensive Plan County Road 116 State Highway 47 Note 17. COMIVIITMENTS AND CONTINGENCIES At the present time, there is no significant litigation pending which is not covered by the City's insurance. A. Commitments for Construction During the yeaz, the City contracted for several capital projects. At year-end, the total unearned construction contracts totaled approximately $426,187. 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. Note 18. INDUSTRIAL REVENUE BONDS From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilties transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As os December 31, 1997 there were two series of Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of $199,000. -29-