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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2012
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<br />NOTE 12 - INSURANCE
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<br />The City provides workers’ compensation benefits under self-insurance programs. Claims outstanding, including
<br />claims incurred but not reported, are estimated and recorded as liabilities in the Self Insurance Internal Service Fund.
<br />The City’s self-insured retention limit for workers’ compensation is $250,000 per claim. The City is a member of the
<br />Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX). This coverage includes a limit of
<br />$25 million for excess workers compensation and $4.75 million for employer’s liability.
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<br />The City is a member of California Joint Powers Risk Management Authority (CJPRMA), which provides annual
<br />general liability coverage in an aggregate up to $40 million. The City is self -insured for the first $1,000,000 in
<br />property and liability losses. The City has had no settlements which exceed insurance coverage in the last five fiscal
<br />years, and no changes in insurance coverage from the prior year.
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<br />The City’s deposits in the CJPRMA equal the ratio of the City’s payroll to the total payrolls of all entities participating
<br />in the same layer of each program in each program year. Actual surpluses or losses are shared according to a formula
<br />developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
<br />Estimated claims liabilities, as shown below, are presented on a basis of actuarial value as determined by the City’s
<br />actuary, who determines the expected value of the overall claim based upon certain criteria of the claim.
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<br />The following provides a reconciliation of claims and judgments:
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<br />Current Year Claims for
<br />Liability Claims and Payments in Liability
<br />Balance Changes in Current and Prior Balance
<br />July 1 Estimates Fiscal Years June 30
<br />2009-10 6,091,683$ 3,182,637$ (3,704,468)$ 5,569,852$
<br />2010-11 5,569,852 5,339,930 (2,978,689) 7,931,093
<br />2011-12 7,931,093 1,219,327 (2,079,197) 7,071,223
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<br />Financial statements may be obtained from CJPRMA, 6410 Stoneridge Mall Road, Suite 380, Pleasanton, CA 94596.
<br />CJPRMA’s audited condensed financial information for the year ended June 30, 2012, is presented below:
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<br /> Total Assets 97,281,326$
<br />Total Liabilities (54,603,177)
<br />Equity 42,678,149$
<br />Total Revenue 20,709,224$
<br />Total Expenses (14,722,343)
<br />Refunds to Member (4,845,850)
<br />Net Increase (Decrease) in Equity 1,141,031$
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