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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2010
<br />NOTE 11- INSURANCE
<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 $2 million for employer's liability.
<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.
<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.
<br />The following provides a reconciliation of claims and judgments:
<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 />2007-08 $ 7,330,743
<br />$ 1,947,197
<br />$ (2,759,678)
<br />$ 6,518,262
<br />2008-09 6,518,262
<br />1,333,273
<br />(1,759,852)
<br />6,091,683
<br />2009-10 6,091,683
<br />3,182,637
<br />(3,704,468)
<br />5,569,852
<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, 2010, is presented below:
<br />Total Assets $ 100,046,718
<br />Total Liabilities (51,093,038)
<br />Equity $ 48,953,680
<br />Total Revenue $ 21,788,468
<br />Total Expenses (15,148,514)
<br />Refunds to Member (4,966,179)
<br />Net Increase (Decrease) in Equity $ 1,673,775
<br />75
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