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<br />NOTE 13 - RISK MANAGEMENT AND SELF-INSURANCE FUND ( CONTINUED)
<br />
<br />The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an
<br />excess liability pool comprised of the BCJPIA and five other local government insurance pools.
<br />CARMA provides coverage from $1,000,001 to $15,000,000. A layer from $1,000,001 to $4,000,000 is
<br />self-insured by CARMA, the layer from $4,000,001 to $10,000,000 is reinsured through an agreement
<br />with a commercial insurer, and the layer from $10,000,001 to $15,000,000 is self-insured by CARMA.
<br />
<br />The City also carries all risk coverage on buildings and their contents at current appraised value.
<br />
<br />Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1020
<br />19th Street, Sacramento, California 95814. The following is the BCJPIA condensed audited financial
<br />results for the year ended June 30, 2004:
<br />
<br />Assets
<br />Reserves for Claims
<br />Liabilities 1
<br />Retained Earnings
<br />Member Contributions
<br />Other Income
<br />Provisions for Claims and Claim Adjustment Expenses
<br />Operating Expenses 2
<br />Net Income (Loss)
<br />
<br />1 Including reserves for claims
<br />2 Excluding provisions for claims
<br />
<br />c.
<br />
<br />Self-Insurance Fund
<br />
<br />$ 13,736,774
<br />4,595,654
<br />8,985,817
<br />4,750,957
<br />8,147,316
<br />36,531
<br />2,597,602
<br />4,824,037
<br />762,208
<br />
<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 analysis
<br />performed by Richard E. Sherman & Associates, Inc. in accordance with GASB 10.
<br />
<br />Changes in the self-insurance fund's claims payable liability for fiscal years ended 2002, 2003, and 2004
<br />were:
<br />
<br />Beginning
<br />Balance
<br />
<br />Current Year C laims/
<br />Changes in Estimates
<br />
<br />Claim
<br />Payments
<br />
<br />2001/02
<br />2002/03
<br />2003/04
<br />
<br />$6,183,890
<br />6,219,790
<br />7,010,972
<br />
<br />($952,894)
<br />(1,804,723)
<br />(1,469,094)
<br />
<br />$988,794
<br />2,595,905
<br />1,586,436
<br />
<br />Ending
<br />Balance
<br />
<br />$6,219,790
<br />7,010,972
<br />7,128,314
<br />
<br />During the fiscal year there were no settlements exceeding the insurance coverages.
<br />
<br />NOTE 14 - REDWOOD CITY REDEVELOPMENT AGENCY
<br />
<br />The Agency has purchased parcels of land for redevelopment in order to develop or redevelop blighted
<br />properties within the city limits of Redwood City. Such land parcels are accounted for at the lower of
<br />cost, estimated net realizable value, or agreed-upon sales price if a disposition agreement has been made
<br />with a developer.
<br />
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