2024 Annual Comprehensive Report

Debt obligations recorded in the Coliseum Enterprise Fund, not contemplated to be repaid with the Fund’s own resources, are reported as general government debt for financial reporting purposes, according to guidance in NCGAS Statement No. 1.

Ending Balance

Internal Service Funds: Other Liabilities: Lease Liabilities

$ 11,589,771

IT Subscription Financing Agreements

7,234,627 1,351,229 15,480,499

Compensated Absences

Pension & OPEB

Internal Service Fund Long-Term Liability

$ 35,656,126

V. Other Information

A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City protects itself from potential loss through a combination of purchased commercial insurance for primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are primarily for health, employee workers’ compensation, general, professional, law enforcement, vehicle and underground storage tank liabilities. The City purchases Flood Insurance coverage through the Blanket Property insurance policy with an annual aggregate flood limit of $50,000,000 with deductibles ranging from $100,000 to $500,000 per location depending on the size and location of the facility. One location is covered solely by the City’s self-funded insurance plan. The City has not had a flood loss in the past 40 plus years that amounted to more than $100,000. Bonding in the following amounts is held for City employees involved in financial transactions: Finance Officer, $1,000,000, Tax Collector, $100,000, and Employee Blanket Bond, $100,000. All operating funds of the City participate in the risk management program and make payments to the Employee Risk Retention Fund and the General Risk Retention Fund based on the funds’ historical claims experience. Payments are for prior and current year claims and to establish a reserve for catastrophic losses. Claims liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but are not reported (IBNR’s), based on actuarial computations. Settled claims have not exceeded self–retained or purchased insurance coverage in any of the past three fiscal years. 1. Employee Risk Retention The City provides for health, dental, life and workers’ compensation benefits in its Employee Risk Retention Fund. The City’s health plan currently offers two plan options through a self-funded program, and a dental plan and vision plan is administered for employees and their covered dependents, supplemented by employee contributions. Term life insurance for employees is provided by the City for the term of employment, at no cost to the employee. The amount of coverage is based on salary. For those dependents covered by the health plan, the City also provides a reduced coverage term life insurance policy at no cost to the employee. For the life plan, the City pays its contribution directly to the insurer. The City is self-funded for workers’ compensation for claims up to $1,250,000 per occurrence. Claims in excess of the retention are covered through a combination of purchased insurance and self-funding participation, with $1,140,382 held in the Local Government Excess Liability Fund, Inc. (ELF) for that purpose at June 30, 2024.

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