CAFR 2017

3. Reconciliation of Claims Liability Changes in the City’s claims liability balance during Fiscal Years 2017 and 2016 are as follows:

Employee

General

Risk

Risk

Total

Total

Retention

Retention

2016-17

2015-16

Balance-July 1

$

9,628,392

7,456,958 $

17,085,350 $

12,371,391 $

Add: Incurred Claims (including)

IBNR's and Changes in Estimates

40,663,105 (39,933,600)

1,841,852 (4,578,724)

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

46,949,047 (42,235,088)

Deduct: Claims Payments

Balance - June 30

$

10,357,897

4,720,086 $

15,077,982 $

17,085,350 $

B. Subsequent Events The City has evaluated subsequent events through November 21, 2017 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. On July 26, 2017 the City sold the Series 2017A revenue bonds of approximately $70.5 million with an average fixed interest cost of 3.27% over their 30-year term this included refunding the $50 million revenue bond anticipation note and $20 million of new money. The City also sold $31.6 million of Series 2017B revenue refunding bonds which refunded the 2009A revenue bonds from 2009 with an average fixed interest cost of 2.16% over their remaining 14-year term. The bonds were rated AAA, Aa1, and AAA by Fitch Ratings, Moody’s Investors Service, and S&P Global, respectively. In order to improve efficiency, the City has invested in the expansion of the TZO Wastewater Reclamation Facility. With the expansion and consolidation of operations, the City plans to decommission the North Buffalo Wastewater Reclamation Facility on January 1, 2018. The sight will still serve as a sewage lift station. In order to improve efficiency, the City has invested in the expansion of the TZO Wastewater Reclamation Facility. With the expansion and consolidation of operations, the City has discontinued water treatment operations at the North Buffalo Wastewater Reclamation Facility as of October 31, 2017. The site will still serve as a pump and equalization station and house certain administrative functions.

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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