AgdaPkt 2007-12-17 - Laserfiche WebLink

Browse Search

NOTE 13—RISK MANAGEMENT AND SELF-INSURANCE FUND�CONTINUED� C. Self-Insurance Fund The City maintains a self-insurance internal service fund for its workers' compensation and general liability self-insurance programs. This fund accounts for revenues from departmental charges and operating expenses, including settlements within the City's self-insured retentions. Reserves for incurred but not reported claims are maintained within this fund. These reserves are based on an actuarial analysis performed by Richard E. Sherman&Associates, Inc. in accordance with GASB 10. Changes in the self-insurance fund's claims payable liability for fiscal years ended 2005, 2006, and 2007 were: Beginning Current Year Claims/ Claim Ending Balance Changes in Estimates Payments Balance 2004/OS 7,128,314 3,258,276 (1,432,870) 8,953,720 2005/06 8,953,720 1,714,189 (1,767,687) 8,900,222 2006/07 8,900,222 2,104,378 (1,347,760) 9,656,840 Settlements have not exceeded coverage for each of the past three fiscal years. NOTE 14—REDWOOD CITY REDEVELOPMENT AGENCY The Agency has purchased parcels of land for redevelopment in order to develop or redevelop blighted properties within the city limits of Redwood City. Such land parcels are accounted for at the lower of cost, estimated net realizable value, or agreed-upon sales price if a disposition agreement has been made with a developer. The Agency has entered into agreements with developers and other government entities for the purpose of ensuring the redevelopment of properties in its area. The Agency's agreements with developers, termed disposition and development agreements or owner participation agreements, generally require the Agency to assist in financing land acquisition or operating costs of a specific project, but are based on the developer's performance on that project as measured by increases in property taxes and sales taxes generated by the project or to provide affordable housing to the community. The increases in these taxes are the only source of Agency assistance for the project. The Agency has agreements termed pass-throughs with government entities. These agreements require the Agency to pass through to these entities a portion of the property tax increases it collects, representing the increases these entities would have expected to collect if the Agency had not been formed. NOTE 1 S—LITIGATION AND CONTINGENT LIABILITIES The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determinable in amount. There are lawsuits pending in which the City is a party. In the opinion of the City Attorney,the City has adequate legal defenses and/or reserves to cover such liability if it does arise. 58