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CITY OF SUNNY ISLES BEACH, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS <br />FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 <br />NOTE 9 — DEFERRED COMPENSATION PLAN <br />The City offers its employees a deferred compensation plan created in accordance with <br />Internal Revenue Code ("IRC"), Section 457. The plan, administered by the ICIVIA <br />Retirement Corporation, available to all City employees, permits them to defer a portion of <br />their salaries until future years. Participation in the plan is optional. The deferred <br />compensation is generally not available to employees until termination, retirement, death or <br />the hardship distribution criteria, as defined in IRC Section 457. The assets of the plan are <br />held in trust and are the sole property of the participants; therefore, no balances or financial <br />information is reported in the basic financial statements. <br />NOTE 10 - COMMITMENTS AND CONTINGENCIES <br />LITIGATION <br />The City is a defendant in various lawsuits, including personal injury, property damage and <br />other miscellaneous claims. These legal proceedings are incidental to the City's operations, <br />the outcome of which, in the opinion of management and legal counsel, would not have a <br />material adverse effect on the financial condition of the City. <br />RISKMANAGEMENT <br />The City is exposed to various risks of loss related to torts, theft of, damage to, and <br />destruction of assets; errors and omissions; injuries to employees; and natural disasters. <br />The City purchases commercial insurance to cover the various risks. There were no <br />reductions in insurance coverages from coverages in the prior year. There were no settled <br />claims that have exceeded insurance coverage for each of the past three years. <br />CONSTRUCTION COMMITMENTS <br />The City has various pending, ongoing and future capital improvement projects. These <br />projects primarily consist of the Golden Shores Utility Undergrounding and Drainage <br />project, Transportation improvements, the Collins Avenue Utility Undergrounding project, <br />Park and Pier improvements, and other drainage improvements. The remaining <br />commitments on these projects are estimated to be $2,053,000, $135,000, $356,000, <br />$1,055,000, $292,000 and $202,000, respectively. <br />65 <br />