COG Comprehensive Annual Financial Report

3. Reconciliation of Claims Liability Changes in the City’s claims liability balance during Fiscal Years 2018 and 2017 are as follows:

Employee

General

Risk

Risk

Total

Total

Retention

Retention

2017-18

2016-17

Balance-July 1

$

10,357,897 $ 4,720,086 $ 15,077,983 $ 17,085,350

Add: Incurred Claims (including)

IBNR's and Changes in Estimates

40,713,486 (40,174,288)

2,800,248 (2,275,580)

43,513,734 (42,449,868)

42,504,957 (44,512,325)

Deduct: Claims Payments

Balance - June 30

$

10,897,095 $ 5,244,754 $ 16,141,849 $ 15,077,982

B. Subsequent Events The City has evaluated subsequent events through October 29, 2018 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. On September 25, 2018 the City sold $10.4 million Series 2018A taxable GO bonds to support housing projects. The bonds have average fixed interest rate of 2.81% with a final maturity of October 1, 2020. In addition to new projects, the proceeds will be used to retire the taxable Public Improvement Series 2018B Bond Anticipation Note. The City also issued Series 2018B tax- exempt GO bonds of approximately $135.4 million at an average fixed interest rate of 3.16% over their 20-year term. The proceeds will be used to retire the outstanding Public Improvement Series 2017A Bond Anticipation Note and the Public Improvement Series 2018A Bond Anticipation Note, as well additional Streets, Parks and Recreation, Natural Science Center, and Community and Economic Development projects authorized in the 2008, 2009, and 2016 bond referendums. On October 17, 2018 the City sold $20.6 million Series 2018A tax-exempt Limited Obligation Bonds (LOBs) to support improvements at the Coliseum Complex. The bonds have average fixed interest rate of 4.10% with a final maturity of April 1, 2044. In addition to new projects, the proceeds will be used to retire the outstanding 2016 tax-exempt Limited Obligation Note. The City also issued Series 2018B taxable LOBs of approximately $11.5 million at an average fixed interest rate of 4.23% with a final maturity of April 1, 2031. The proceeds will be used to retire the outstanding 2016 taxable Limited Obligation Note and the Coliseum Project Series 2010A Taxable Certificates of Participation (COPs). The retirement of the COPs will yield a net present value savings of $72,439 as well as additional administrative savings. C. Commitments and Contingencies 1. Legalities The City is party to a number of civil lawsuits and other legal actions. Most of these lawsuits involve construction contracts, public right of way management, and personnel issues. In the opinion of the City’s Attorney and management, the ultimate outcome of these suits is not expected to have significant impact upon the City’s financial position.

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