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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2022
<br />NOTE 11 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
<br />A.Fund Deficits
<br />At June 30, 2022, the Measure BB Special Revenue Fund, Special Grants Special Revenue Fund, and the
<br />Storm Water Utility Enterprise Fund had a net position deficits of $2,117,873, $710,443 and $1,951,395,
<br />respectively.
<br />B.Expenditures in Excess of Appropriations
<br />Excess of expenditures over appropriations approved by the City Council occurred in individual funds
<br />during the fiscal year 2021-22 as follows:
<br />Fund/Department Expenditure Appropriation Excess
<br />Special Revenue Funds
<br />Cherrywood Maintenance District 459$ 452$ (7)$
<br />NOTE 12 – INSURANCE
<br />The City provides workers’ compensation benefits under self-insurance programs. Claims outstanding,
<br />including claims incurred but not reported, are estimated and recorded as liabilities in the Self Insurance
<br />Internal Service Fund. The City’s self-insured retention limit for workers’ compensation is $250,000 per
<br />claim. The City is a member of the Local Agency Workers’ Compensation Excess Joint Powers
<br />Authority (LAWCX). This coverage includes a limit of $45 million for excess workers compensation, $5
<br />million for employer’s liability, and a statutory excess layer of $50 million.
<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 $500,000 for liability losses. The City has had no settlements that exceed the self-insured
<br />retention coverage in the last five fiscal years.
<br />The City’s deposits in the CJPRMA equal the ratio of the City’s payroll to the total payrolls of all entities
<br />participating in the same layer of each program in each program year. Actual surpluses or losses are
<br />shared according to a formula developed from overall loss costs and spread to member entities on a
<br />percentage basis after a retrospective rating. Estimated claims liabilities, as shown below, are presented
<br />on a basis of actuarial value as determined by the City’s actuary, who determines the expected value of
<br />the overall claim based upon certain criteria of the claim.
<br />The following provides a reconciliation of claims and judgments:
<br />Current Year Claims for
<br />Liability Claims and Payments in Liability Liability
<br />Balance Changes in Current and Prior Balance Due in
<br />July 1 Estimates Fiscal Years June 30 One Year
<br />2019-2020 6,825,696$ 3,302,409$ (2,464,858)$ 7,663,247$ 1,170,645$
<br />2020-2021 7,663,247 1,304,621 (1,916,234) 7,051,634 4,233,746
<br />2021-2022 7,051,634 2,241,399 (2,223,164) 7,069,869 4,251,981
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