Board Of Aldermen - Minutes - 10/25/2021 - P5
Special Board of Aldermen 10-25-2021 Page 5
Jennifer Deshaies, Risk Manager
Correct.
Alderman Klee
So that’s what you meant by the life of the person not necessarily that the person was out of work forever.
Jennifer Deshaies, Risk Manager
Right, not the life of the claim. So the claim may close. We may not see any other activity for the life of that person
or, you know, five years down the road they may come back due to a failed surgery or something like that. It could
happen.
Alderman Klee
Thank you for the clarification.
Kim Kleiner, Administrative Services Director
Thank you Chair. | just wanted to say that when we book this incurred but not received amount, which this year is
over $541,000 that goes against the fund and into a reserve. So as this is being trended out by our actuaries, the
money that they feel that the city needs to have should these claims reach the levels that they have reserved for it,
that money is there. That’s over $4 million at this point. That’s what happens. It gets booked against the fund so our
property and casualty fund in this case goes down. It has in some years gone up and it’s booked to a reserve so that
the money to pay the claims is there for the city.
Alderman Klee
May | ask one quick question? Thank you. Pardon me and I’m going to refer to myself as pardon my ignorance here
but when I’m looking at that very first sheet that you gave us, you talked about total revenue. Is the revenue interest
that’s made from us just having the money in the bank or what is the revenue from?
Kim Kleiner, Administrative Services Director
So the revenue includes what’s transferred from the General Fund each year. There’s interest and then there’s also a
transfer from the wastewater budget to cover the claims of property, automobile, and not just workman’s comp., and
many different things. Then there’s also the wonderful work that our Risk Department does in recoveries. So getting
money from third parties that are responsible.
Alderman Klee
Perfect. Thank you so much.
Alderwoman Lu
What does IBNR stand for?
Jennifer Deshaies, Risk Manager
Incurred but not reported.
Alderwoman Lu
Thank you. And one other question. | noticed that the automobile costs have doubled since last year, | think, or
doubled at some point. Do we have more automobiles on the road right now than we did in 2020 that are insured
through this plan or are they just getting in twice as many accidents?
Jennifer Deshaies, Risk Manager
| don’t necessarily think they're getting in twice as many accidents. It could be for just the reason of it’s a more
