07-14-1986 Council Packet - Laserfiche WebLink

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NOTE T'NANCIAL STATEF':NTS - Continued December 31, 1985 Note 9: Retirement Plans - Continued All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, anA all income attributable to those amounts, p:aperty, or ri-hts are (until paid or made available to the emplr.yee or other benef:, `ary) solely the property and rights of the City 'without being res icted to the provisions of benefits under the plan), subject only 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 the fair market value of the deferred account for each participant. The City has the duty of due care that would be required of an ordi- nary prudent investor. The City believes that it is unlikely that it will use the assets to f -is. the claims of general creditors in the future. Deferred compensation contribitions for 1985 were $42,259. At December 31, 1985, the market value of plan assets was $165,185. Note 10: Contingencies A. There are approximately 87 parcels appealing the Crystal Bay Area Sewer Project Assessment w}ich was adopted at $9,235 per parcel. The outcome of these appeals cannot be determined at this time. However, any shortage of assessment revenue necessary to pay off the related bond issue would be replaced by a general tax levy. B. Three claims have been filed against the City. The City's insurer has accepted defense of these claims. The outcome of each case is unknown. It is not deter able at this time whether unfavorable settlements -f the claims .11 exceed '_.,durance coverage. City management t*_iieves that the City will not incur any monetary loss relating to the cases. No loss has been recorded on the City's financial statements relating to the claims. . • 20