Laserfiche WebLink
CITY OF ORONO <br />NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />Note 11. DEFERRED COMPEN. 'ION PLANS (continued) <br />All amounts of compensation deferred under the plans, all property and <br />rights purchased with those amounts, and all income attributable to <br />those amounts are solely the property and rights of the City, subject <br />to the claims of the City's general creditors. Participants' rights <br />under the plans are equal to those of general creditors of the City in <br />an amount eqtil to the fair marlcet value of the deferred account for <br />each participant. <br />The City has no liability for losses under the plans but does ha<^e the <br />duty of due care that would be required of an ordinary prudent <br />Investor. The City believes that it is unlikely that it will use the <br />assets to satisfy the claims of general creditors in the future. <br />Note 12. COMMITMENTS AND CONTINGENCIES <br />The City and its Insurer were named as defendants in a case filed in <br />May 19d9. A former police officer, while on duty, was injured in an <br />automobile accident in February 1985 by an uninsured motorist and is <br />seeking compensation under the uninsured motorist benefit of the <br />City's Insurance policy in an amount in excess of $50,000. The City's <br />Insurer is providing defense of this claim. <br />L-'-veral othei' claims have been filed against the City. The City's <br />insurer has accepted defense of these claims. <br />The outcome of each of these cases is unknown. It is not determinable <br />at this time whether unfavorable settlements of the claims will exceed <br />insurance coverage. City management believes that the City will not <br />incur an> monetary loss relating to the cases. No loss has been <br />recorded on the City's financial statements relating to the claims. <br />The City awarded several contracts related to Water and Sewer Fund <br />System Improvements in 1989. The "'s commitment for uncompleted <br />work o*^ these projects was appro y $185,000 at December 31, <br />1989. However, in April ^990 th^ .ity cancelled two of these <br />contracts which had remaining contract balances for uncompleted work <br />of approximately $101,000 at the time of cancellation. The contracts <br />were ''ancelled dui to the contractor's failure to fulfill contract <br />obligations. The City will complete these projects using a different <br />contractor.