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City of Redwood City
<br />Notes to the Basic Financial Statements (Continued)
<br />For the Year Ended June 30, 2025
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<br />Note 11 – Risk Management
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<br />A. Workers’ Compensation
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<br />The City is self-insured for workers’ compensation for the first $350,000 per occurrence and has a commercial
<br />insurance policy that covers the City’s exposure above the retained limits up to the statutory limits required by the
<br />State of California. The City paid $739,520 during FY 2024-25 for the coverage.
<br />
<br />The City’s workers’ compensation policy includes coverage for the Port of Redwood City. The Port carries property
<br />and liability insurance policies with limits of $15,000,000 and $150,000,000, respectively.
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<br />B. General Liability, Automobile, and Property Insurance
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<br />The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is an insurance pool
<br />consisting of 21 San Francisco Bay Area government agencies, which the City uses for general liability, property
<br />insurance, and auto liability coverage. In FY 2024-25 the City maintained a $350,000 self-insured retention with
<br />coverage from $350,000 to $1,000,000 through the BCJPIA. The purpose of the pool is to provide certain levels of
<br />liability coverage, claims administration, and loss control support to member agencies. Annually, each agency pays
<br />an actuarially-determined premium based upon a formula which takes into account loss experience, annual payroll,
<br />and population. This premium pays for administrative costs and funds liability reserves. The total premium paid in
<br />FY 2024-25 was $4,924,136.
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<br />The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br />liability pool comprised of the BCJPIA and four other local government insurance pools. CARMA provides
<br />coverage for an amount in excess of $1,000,000.
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<br />The City also carries all risk coverage on buildings and their contents at replacement cost value.
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<br />Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1750 Creekside
<br />Oaks Drive, Suite 200, Sacramento, CA 95833.
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<br />C. Self-Insurance Fund
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<br />The City maintains a self-insurance internal service fund for its workers’ compensation and general liability self-
<br />insurance programs. This fund accounts for revenues from departmental charges and operating expenses, including
<br />settlements within the City’s self-insured retentions. Reserves for incurred but not reported claims are maintained
<br />within this fund. These reserves are based on an actuarial analysis performed by Bickmore Actuarial in accordance
<br />with GASB 10.
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<br />A summary of the changes in claims liabilities for the past two fiscal years follows:
<br />
<br />Claims Incurred/Due in
<br />Fiscal Year Beginning Changes to Prior Claim Ending Due Within More than
<br />Ended June 30, Balance Year Estimates Payments Balance One Year One Year
<br />Workers Compensation:
<br />2025 27,179,834$ 3,245,224$ (3,023,678)$ 27,401,380$ 4,400,004$ 23,001,376$
<br />2024 28,929,116 1,380,033 (3,129,315) 27,179,834 5,550,765 21,629,069
<br />General Liability:
<br />2025 3,027,000$ 2,278,066$ (2,187,718)$ 3,117,348$ 1,320,875$ 1,796,473$
<br />2024 3,141,000 2,809,239 (2,923,239) 3,027,000 1,276,000 1,751,000
<br />Total:
<br />2025 30,206,834$ 5,523,290$ (5,211,396)$ 30,518,728$ 5,720,879$ 24,797,849$
<br />2024 32,070,116 4,189,272 (6,052,554) 30,206,834 6,826,765 23,380,069
<br />Settlements have not exceeded coverage for each of the past two fiscal years.
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