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City of Redwood City
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2017
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<br />NOTE 13 – RISK MANAGEMENT AND SELF‐INSURANCE FUND (CONTINUED)
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<br />The City also carries all risk coverage on buildings and their contents at replacement cost value.
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<br />Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1750
<br />Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. The following is the BCJPIA condensed audited
<br />financial results for the year ended June 30, 2017:
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<br />Assets 35,252,474$
<br />Reserves for Claims 20,100,376
<br />Liabilities(1)3,924,302
<br />Net Position Unrestricted 11,227,796
<br />Member Contributions 13,223,178
<br />Other Income 716,027
<br />Claims and Claim Adjustment Expenses (2)6,544,436
<br />Operating Expenses(3)6,934,541
<br />Change in Net Position 460,228
<br />(1)Excluding claims liabilities
<br />(2)Including change in unpaid claims
<br />(3)Excluding claims and claim adjustment expenses
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<br />C. Self‐Insurance Fund
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<br />The City maintains a self‐insurance internal service fund for its workers’ compensation and general
<br />liability self‐insurance programs. This fund accounts for revenues from departmental charges and
<br />operating expenses, including settlements within the City’s self‐insured retentions. Reserves for incurred
<br />but not reported claims are maintained within this fund. These reserves are based on an actuarial
<br />analysis performed by Richard E. Sherman & Associates, Inc. in accordance with GASB 10.
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<br />Changes in the self‐insurance fund’s claims payable liability for fiscal years ended 2015, 2016, and 2017
<br />were:
<br /> Beginning Balance
<br /> Current Year
<br />Claims/Changes in
<br />Estimates
<br /> Claim Payments Ending Balance
<br />$$$$
<br />2014‐15 18,454,723 6,671,124 (4,222,289) 20,903,558
<br />2015‐16 20,903,558 7,782,145 (5,568,861) 23,116,842
<br />2016‐17 23,116,842 4,486,534 (3,822,883) 23,770,493
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<br />Settlements have not exceeded coverage for each of the past three fiscal years.
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<br />6.1.E. - Page 103
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