C.A.F.R., FY 2004-05 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2005 IV. Detailed Notes on All Funds (Continued) H. Restricted Net Assets and Restricted Asset Accounts The City's bond covenants require certain restrictions of net assets. The restricted portions are as follows: Restricted for Revenue Bond Operations and Maintenance Restricted for Contingency Total Restricted Net Assets $ 1,317,229 688,145 $ 2,005,374 Collections of Notes Receivable are restricted by grant agreements to be used for building rehabilitation. The balances of the City's restricted asset accounts are as follows: Certificates of Accrued Deposits and Interest and Cash and Cash Other Other Equivalents Investments Receivables Customer Deposits $ 189,845 $ 258,388 $ Revenue Bond Contingency 156,412 531,733 Revenue Bond Construction Account 1,426,204 6,025 Revenue Bond Current Debt Service Account 2,536,471 Revenue Bond Future Debt Service Account 371,563 1,417,880 7,991 Funding Future Water Storage Rights 2,272,010 Notes Receivable 69,474 Total Restricted Assets $ 6,952,505 $ 2,214,026 $ 77,465 V. Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates calculated under the agreement. There has been no significant reduction in insurance coverage during the year ended September 30,2005. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. The City has established a partially self-funded group comprehensive health care program for all employees and approximately 317 employees are covered. Under the program, the City has contracted with insurance companies to process employee claims and provide reinsurance for annual individual coverage exceeding $75,000. Effective June 1, 2004, the City adopted a self-funded group benefits risk pool operated by a Board of Trustees to replace the old health care program. Activity for this trust is reported in the General Fund. At September 30,2005, this fund balance sheet reflected a deficit in fund balance of $1,084,583. Should the program be terminated, the amount payable for unreported claims is estimated at $278,000. All funds of the City participate in the program based on estimated historical cost information of the amounts 49