MEMO
To: Honorable City Council
From: City Clerk Lisa Roos
Date: July 11, 2023
Subject: CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT ASSOCIATION
RETROSPECTIVE ADJUSTMENT INVOICE
RECOMMENDED ACTION:
Approve the invoice for $36,928.00 payable to Central San Joaquin Valley Risk Management Authority for the 2022 Liability Retrospective Adjustment.
DISCUSSION/ANALYSIS:
The City of Ripon is a member of the Central San Joaquin Valley Risk Management Association, which is a self-insured pool of nearly 50 cities that share in the risk for liability and worker’s compensation claims.
Each program year is maintained as a separate entity for which an independent set of financial records is prepared. Therefore, each program year in which your city has participated will have a separate set of interim transactions and will show the incurred losses and other expenses which have been paid on behalf of Ripon through June 30, 2022.
Each program year is “Retrospectively Adjusted” five years after the end of the program year and annually thereafter. Program years remain “open” until the last claim incurred during the program year is closed and the actuary has determined there is no longer a need for any incurred but not reported (IBNR) reserves. If any claims remain open and/or there is still a reserve for IBNR, a program year will continue to be reported and retrospectively adjusted, if applicable.
For the most recent liability program year that was retrospectively adjusted, the expenses incurred because of Ripon’s actual claims during that year resulted in a deficit, requiring an additional payment of $36,928.00.
FISCAL IMPACT:
The fiscal impact is $36,928.00 to the General Fund.
City Council
259 N. Wilma Avenue
Ripon, CA, 95366