2024 Annual Comprehensive Report

The City’s contributions toward employee costs are accounted for as expenditures when the funds are contributed to the Employee Risk Retention Fund. 2. General Risk Retention The City’s General Risk Retention (Fund) includes funds in the ELF to self-fund certain types of liability claims. Up until December 31, 1999, the ELF was structured to provide varying tiers of funding, with pre-determined contribution rates, limits of coverage, repayment schedules and certain levels of transfer of risk from the five local governments and school members originally represented by the ELF. Effective January 1, 2000, the ELF was reorganized and the resulting structure provides for no transfer of risk from any of the member units to the ELF. Fund balances are segregated by member and in the event of loss, those amounts are available for claims payment by the respective member. The new structure of the ELF is considered to be similar to a claims-servicing arrangement. The aggregate amount available in the ELF for the City to pay claims is $9,877,616 as of June 30, 2024. The City purchases property insurance with a $100,000 deductible for most losses. Property losses up to $100,000 per occurrence are paid by the Fund after application of a $10,000 deductible requirement. Property insurance coverage above the annual retention provides for up to 100% replacement cost, limited to $600,000,000 per occurrence. At June 30, 2024, the City held $972,542 in the Fund to pay property-related claims.

3. Reconciliation of Claims Liability

Employee

General

Risk

Risk

Total

Total

Retention

2023-24

2022-23

Retention

Balance - July 1

$ 11,811,743 $ 5,138,726 $ 16,950,469 $ 18,247,333

Add: Incurred Claims (including)

IBNR's and Changes in Estimates

56,044,802 (54,080,561)

2,750,442 (752,160)

58,795,244 (54,832,721)

47,429,818 (48,726,682)

Deduct: Claims Payments

Balance - June 30

$ 13,775,984 $ 7,137,008 $ 20,912,992 $ 16,950,469

Balance of Claims Liability is included with Accounts Payable. B. Subsequent Events The City has evaluated subsequent events through October 31, 2024 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. Effective July 1, 2024, the City transitioned management of its Coliseum Complex and Tanger Performing Arts Center to a private management company. The terms of the agreement specify that the City will pay a management fee and certain incentive arrangements over a seven year term. Selected staff of the operations will remain City employees for varying periods through June 30, 2025. On August 7, 2024 the City sold $40,580,000 Series 2024 Limited Obligation bonds to support the construction of an Equipment Services Garage, the purchase of yard carts, and fund miscellaneous projects. The bonds have average fixed interest rate of 4.91% with a final maturity of October 1, 2044.

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