FY2022

RISK MANAGEMENT FUND The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988, the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. Funds pay annual premiums to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior and current-year claims and to establish a reserve for catastrophic losses. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. All other funds participate in the Loss Reserve Fund. Nearly 93% of the Risk Management Fund’s revenue is from internal service charges to the other funds for annual premiums. For the year ending June 30, 2021 the City has purchased property, liability, and workers’ compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $500,000 self-insured retention on workers’ compensation losses. Liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $12.0 million annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past five fiscal years. The City will seek bids to renew or replace its insurance coverage this spring for fiscal year 2022. The fiscal year 2021 revised fund balance is $4,136,545 million which is $22,950 or .56% higher than the fiscal year 2020 ending fund balance. The budgeted ending fund balance for fiscal year 2022 is $4,116,014, which is lower than the 2021 revised fund balance by .50%. The fund balance is expected to remain stable and relatively flat over the next two years.

629