21.
22.
liability as these respective employees are included only in the City’s plan that does not
have assets held in a trust for future OPEB liabilities.
Self-Insurance
The City self-insures against claims for workers compensation, general liability, property,
long-term disability, and employee health coverage. Annual estimated requirements for
claims are provided in the City’s annual operating budget.
Health Insurance
The City contracts with insurance carriers for claims processing. Under the terms of the
insurance coverage, the employee is only liable for the cost sharing premiums and co-pays.
The City retains the risk to $350,000 and maintains excess insurance for claims that exceed
$350,000. The claims liability represents an estimate of claims incurred but unpaid at year-
end, based on past historical costs and claims paid subsequent to year-end.
General Liability/Workers’ Compensation
The City is self-administered for claims processing of the City’s workers’ compensation,
property, and casualty programs. The workers’ compensation, property, and casualty liabilities
represent an estimate of future costs based on historical analysis of similar claims.
Changes in the aggregate lability for claims for the year ended June 30, 202] are as
follows:
Year Ended Year Ended
June 30, 2021 June 30, 2020
Claims liability, beginning of year $ 8,788,358 $ 7,219,284
Claims incurred/recognized 52,509,713 48,776,314
Claims paid (52,734,131) (47,207,240)
Claims liability, end of year $ 8,563,940 * $ 8,788,358 *
* This liability is considered to be all current.
The $8,563,940 estimated liability for claims incurred, but not reported, includes only an
estimate for known loss events expected to later be presented as claims. The City is unable
to estimate the amount of unknown loss events expected to become claims and expected
future developments on claims already reported.
Commitments and Contingencies
Outstanding Legal Issues
On an ongoing basis, there are typically pending legal issues in which the City is involved.
The City’s management is of the opinion that the potential future settlement of these issues
would not materially affect its financial statements taken as a whole.
95
