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City of Redwood City 6.1.D. - Page 105
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<br />NOTE 13 — RISK MANAGEMENT AND SELF-INSURANCE FUND (CONTINUED)
<br />C. Self -Insurance Fund
<br />The City maintains a self-insurance internal service fund for its workers' compensation and general liability
<br />self-insurance programs. This fund accounts for revenues from departmental charges and operating
<br />expenses, including settlements within the City's self-insured retentions. Reserves for incurred but not
<br />reported claims are maintained within this fund. These reserves are based on an actuarial analysis
<br />performed by Richard E. Sherman & Associates, Inc. in accordance with GASB 10.
<br />Changes in the self-insurance fund's claims payable liability for fiscal years ended 2014, 2015, and 2016
<br />were:
<br />Current Year
<br />Beginning Balance Claims/Changes in Claim Payments
<br />Estimates
<br />2013-14 13,400,352 7,617,770 (2,563,399)
<br />2014-15 18,454,723 6,671,124 (4,222,289)
<br />2015-16 20,903,558 7,782,145 (5,568,861)
<br />Settlements have not exceeded coverage for each of the past three fiscal years.
<br />NOTE 14 — DISSOLUTION OF THE REDWOOD CITY REDEVELOPMENT AGENCY
<br />Ending Balance
<br />18,454,723
<br />20,903,558
<br />23,116, 842
<br />As part of the FY 2011-12 State Budget package, and in an effort to help solve the State's budget problems,
<br />the California legislature enacted and the Governor signed two companion bills addressing
<br />redevelopment, AB X1 26 (Dissolution Act) and AB X1 27 (Voluntary Program Act), which took effect on
<br />June 29, 2011.
<br />The Dissolution Act immediately suspended all new redevelopment activities and incurrence of
<br />indebtedness, and eliminated redevelopment agencies as of October 1, 2011.
<br />The Voluntary Program Act allows the community that created the redevelopment agency to avoid
<br />dissolution by opting to pay a substantial community remittance beginning FY 2011-12 and each year
<br />thereafter.
<br />On July 18, 2011, the California Redevelopment Association, the League of California Cities, and others
<br />filed a Petition for Writ of Mandate in the Supreme Court of the State of California (California
<br />Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861), challenging the
<br />constitutionality of the companion bills, the Dissolution Act, and the Voluntary Program Act, on behalf of
<br />cities, counties, and redevelopment agencies, and requesting a stay of their enforcement.
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