Laserfiche WebLink
09/12/2006 TUE 16:09 FA% 7192545150 LAV�PCD Fax ��� Peter Nichols [�022/029 <br />LOWER ARKAIVSAS VALLEY WATER CONSERVANCY DISTRICT <br />NOTES TO FINANCIAL STATEMENTS <br />NOTE 6 - AMENDMENT ONE (Continued) <br />Except for bond refinancing at lower interest rates o� adding employees to existing pension plans, the <br />Amendment specifically prohibits the creation of multiple-fiscal year debt or other financial obligations <br />without voter approval or irrevocable pledging present cash reserves for ail future payments. <br />The Amendment requires #hat Emergency Reserves be established. These reserves must be at least 3 <br />pe�cent of Fiscal Year Spending (excluding bonded debt service). Emergency reserves have been <br />presented as a reservation of fund balance in the general funds. The entity is not allowed to use the <br />emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit <br />increases. <br />�. : The Amendment is complex and subject to judiciai interpretation. The entity believes it is in compliance <br />;. with the requirements of the amendment. However, the entity has made certain interpretations in the <br />� amendment's language in order to determine its compliance. <br />NOTE 7 — RISK MANAGEMENT <br />The District carries commercial insurance for their risks. These risks are business interruption, property <br />,. losses, natural disas#ers and injuries to employees. in the first and second year of operations the District <br />�� did not have any claims. <br />i; <br />�� ; <br />�. i <br />� •: <br />i' : <br />;: <br />� <br />� ! PAGE 13 <br />�.....: <br />