At the time of delivery of the notes, $140,000 shall be deposited into an
improvement and extension account. deficiency in the sinking account,
These funds shall be used if there is a reserve account or to pay for capital
improvements and extensions to the Power Plant.
The Power Plant has not established the reserve or improvement and extension accounts as required by the electric revenue note resolution.
Pension and Retirement Benefits
The Power Plant contributes to the Iowa Public Employees Retirement System (IPERS),
which is a cost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits which are established by
state statute to plan members financial report that includes
IPERS issues a publicly available
financial statements and be obtained by writing to
required supplementary IPERS, P.O. Box 9117,
Plan members are required to contribute 3.70% of their annual covered salary and the
Power Plant is required to contribute 5.75% of annual covered payroll.
requirements are established by for the year ended December 31, the year.
statute. The Power Plant’s contribution to IPERS was $7,970, equal to the required contribution for
Power Plant employees accumulate a limited amount of earned but unused vacation, sick leave and compensatory time hours for subsequent use or for payment upon termination, retirement or death. These accumulations are not recognized as disbursements by the Power Plant until used or paid.
The Power Plant has not determined the approximate liability for earned vacation, sick leave and compensatory time termination payments payable to employees at December 31, 2003.
Per the Code of Iowa, disbursements may not
During the year ended
business type budgeted.
legally exceed budgeted appropriations at the December 31, 2003, disbursements in the City of Villisca budget exceeded the amount
The Power Plant is exposed to various risks of loss related to torts; theft, damage to and
destruction of assets; errors and omission; injuries to employees; and natural disasters.
These risks are assumes liability
covered for any
by the purchase of commercial insurance.
The Power Plant
deductibles and claims in excess of coverage limitations.
from these risks have December 31, 2003.
At December 31, 2003, the Power Plant had remaining commitments totaling $33,750 for the installation of two new generators. The balance will be paid as work on the project progresses.