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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2014
<br />NOTE 12 — INSURANCE (Continued)
<br />The City is a member of California Joint Powers Risk Management Authority (CJPRMA), which
<br />provides annual general liability coverage in an aggregate up to $40 million. The City is self-insured for
<br />the first $500,000 in property and liability losses. The City has had no settlements which exceed
<br />insurance coverage in the last five fiscal years, and no changes in insurance coverage from the prior year.
<br />The City's deposits in the CJPRMA equal the ratio of the City's payroll to the total payrolls of all entities
<br />participating in the same layer of each program in each program year. Actual surpluses or losses are
<br />shared according to a formula developed from overall loss costs and spread to member entities on a
<br />percentage basis after a retrospective rating. Estimated claims liabilities, as shown below, are presented
<br />on a basis of actuarial value as determined by the City's actuary, who determines the expected value of
<br />the overall claim based upon certain criteria of the claim.
<br />The following provides a reconciliation of claims and judgments:
<br />NOTE 13 - COMMITMENTS AND CONTINGENCIES
<br />The City participates in several Federal and State grant programs. These programs have been audited by
<br />the City's independent accountants in accordance with the provisions of the Federal Single Audit Act as
<br />amended and applicable State requirements. No cost disallowances were proposed as a result of these
<br />audits. However, these programs are still subject to further examination by the grantors and the amount, if
<br />any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time.
<br />The City expects such amounts, if any, to be immaterial.
<br />The City is a defendant in a number of lawsuits which have arisen in the normal course of business.
<br />While substantial damages are alleged in some of these actions, their outcome cannot be predicted with
<br />certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a
<br />material adverse effect on the financial position of the City. As discussed in Note 12 to the Financial
<br />Statement, the City maintains a Self Insurance Fund which has reserves of $1,163,801 at the end of June
<br />30, 2014. These reserves are available to satisfy any future liability.
<br />NOTE 14 - EMPLOYEE RETIREMENT PLANS
<br />A. California Public Employees' Retirement System
<br />Plan Description - The City of San Leandro Miscellaneous Plan is an agent multiple -employer public
<br />employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -
<br />of -living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common
<br />investment and administrative agent for participating public entities within the State of California.
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<br />Current Year
<br />Claims for
<br />Liability
<br />Claims and
<br />Payments in
<br />Liability
<br />Balance
<br />Changes in
<br />Current and Prior
<br />Balance
<br />July 1
<br />Estimates
<br />Fiscal Years
<br />June 30
<br />2011-2012 $ 7,931,093
<br />$ 1,219,327
<br />$ (2,079,197)
<br />$ 7,071,223
<br />2012-2013 7,071,223
<br />4,316,045
<br />(4,689,144)
<br />6,698,124
<br />2013-2014 6,698,124
<br />3,376,112
<br />(3,401,337)
<br />6,672,899
<br />NOTE 13 - COMMITMENTS AND CONTINGENCIES
<br />The City participates in several Federal and State grant programs. These programs have been audited by
<br />the City's independent accountants in accordance with the provisions of the Federal Single Audit Act as
<br />amended and applicable State requirements. No cost disallowances were proposed as a result of these
<br />audits. However, these programs are still subject to further examination by the grantors and the amount, if
<br />any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time.
<br />The City expects such amounts, if any, to be immaterial.
<br />The City is a defendant in a number of lawsuits which have arisen in the normal course of business.
<br />While substantial damages are alleged in some of these actions, their outcome cannot be predicted with
<br />certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a
<br />material adverse effect on the financial position of the City. As discussed in Note 12 to the Financial
<br />Statement, the City maintains a Self Insurance Fund which has reserves of $1,163,801 at the end of June
<br />30, 2014. These reserves are available to satisfy any future liability.
<br />NOTE 14 - EMPLOYEE RETIREMENT PLANS
<br />A. California Public Employees' Retirement System
<br />Plan Description - The City of San Leandro Miscellaneous Plan is an agent multiple -employer public
<br />employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -
<br />of -living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common
<br />investment and administrative agent for participating public entities within the State of California.
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