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CITY OF MONTE VISTA, COLORADO <br /> NOTES TO THE BASIC FINANCIAL STATEMENTS <br /> December 31,2011 <br /> NOTE 12 RISK MANAGEMENT <br /> Colorado Intergovernmental Risk Sharing Agency(CIRSA) <br /> The City is exposed to various risks of loss related to property and casualty losses. The City participates in the <br /> Colorado Intergovernmental Risk Sharing Agency(CIRSA), a public entity risk pool currently operating as a <br /> common risk management and insurance program for member governments. All Colorado municipalities,which <br /> are members of the Colorado Municipal League, are eligible to participate in CIRSA. The City pays an annual <br /> contribution to CIRSA for its property and casualty,and workers' compensation insurance coverage. CIRSA is <br /> designed to be financially self-sustaining through member contributions and additional assessments, if necessary, <br /> and the Pool will purchase excess insurance through commercial companies for members'claims in excess of a <br /> specified self-insured retention that is determined each policy year. There have been no significant reductions in <br /> insurance coverage. Settled claims from these risks have not exceeded insurance coverage for the current year or <br /> the three prior years. <br /> At December 31,2011, CIRSA had assets of$77,404,638, liabilities of$43,787,928 (including$27,069,771 <br /> reserved for unpaid losses and loss adjustment expenses,net of excess insurance recoverables)and net assets of <br /> $33,616,710. The liability amount includes no long-term debt. Total revenues for the year ended December 31, <br /> 2011 amounted to$22,933,579 and total expenses were $23,277,413,resulting in an excess of expenses over <br /> revenues of$343,834. <br /> 1 <br /> NOTE 13 TABOR EMERGENCY RESERVE <br /> Colorado voters passed an amendment to the State Constitution,Article X, Section 20, which has several 1 <br /> limitations,including revenue raising, spending abilities,and other specific requirements of state and local <br /> governments. The amendment is complex and subject to judicial interpretation. The City believes it is in <br /> compliance with the requirements of the amendment. <br /> Fiscal year spending and revenue limits are determined based on the prior years' spending adjusted for inflation and <br /> local growth. Revenue in excess of the limit must be refunded unless the voters approve retention of such revenue. <br /> The voters of the City passed a ballot issue in 1997 allowing for the retention of revenues generated in excess of the <br /> limits imposed by the amendment. I <br /> The amendment also requires that Emergency Reserves be established. These reserves must be at least 3 percent of <br /> fiscal year spending. The entity is not allowed to use the Emergency Reserves to compensate for economic <br /> conditions,revenue shortfalls, or salary or benefit increases. This Emergency Reserve has been presented as a <br /> reservation of fund balance in the General Fund. <br /> The amendment also requires voter approval for any long-term financing entered into by the City. 1 <br /> NOTE 14 JOINT VENTURE <br /> San Luis Valley Regional Solid Waste Authority <br /> The San Luis Valley Regional Solid Waste Authority was created by an intergovernmental agreement between Rio <br /> Grande County and Alamosa County on April 14, 1995,pursuant to the authority granted by C.R.S. 29-1-203. It <br /> has been designated as a joint venture under the provisions of GASB Statement No. 14. Its purpose is to provide <br /> the citizens of both counties an integrated municipal solid waste disposal facility in accordance with provision of <br /> C.R.S. 30-20-1005. <br /> 38 1 <br />