I-1 - Preliminary Official Statement - UR Loan Agreement

(5) Compensated Absences City employees accumulate a limited amount of earned but unused vacation, sick leave, and compensatory time for subsequent use or for payment upon termination, retirement or death. These accumulations are not recognized as disbursements by the City until used or paid. The City’s approximate liability for earned vacation, sick leave and compensatory time payable to employees at June 30, 2019, primarily relating to the General Fund, is as follows: Type of Benefit Amount Vacation $ 29,500 Sick leave 8,000 Compensatory time 3,700 Total $ 41,200 This liability has been computed based on rates of pay in effect at June 30, 2019. (6) Interfund Transfers The detail of interfund transfers for the year ended June 30, 2019 is as follows: Transfer to Transfer from Amount Debt Service Special Revenue: Urban Renewal Tax Increment $ 949,909 Capital Projects Fund Special Revenue: Urban Renewal Tax Increment 1,015,065 Enterprise: Water Capital Projects 156,645 Enterprise: Sewer Capital Projects 156,645 $ 2,278,264 Transfers generally move resources from the fund statutorily required to collect the resources to the fund statutorily required to disburse the resources. (7) Risk Management The City is exposed to various risks of loss related to torts; theft, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the purchase of commercial insurance. The City assumes liability for any deductibles and claims in excess of coverage limitations. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 31