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Financial Performance and Budget Committee
October 14, 2022
FINANCIAL OVERVIEW OF THE CITY’S
SELF-INSURANCE TRUST FUNDS
Finance Department
RiversideCA.gov
2 1. Worker’s Compensation Fund – Administered by
Human Resources
2. General Liability Fund – Risk Management Division of the Finance Department has responsibility for the
oversight of the program, and the City Attorney’s
Office is responsible for administering all third-party claims submitted to the City.
OVERVIEW
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3 1. General Liability – Policy Aggregate Limit of $25,000,000 a) Self-Insured at $3,000,000 per occurrence
2. Worker’s Compensation – Policy Limit Aggregate of
$25,000,000
a) Self-Insured at $3,000,000 per occurrence
3. Two tort liability claims settled in the last ten years exceeded the City's $3M self-insured retention
INSURANCE COVERAGE AND EXPOSURE
RiversideCA.gov
4 1. Large Cash Outlays
a) Claim Payments
b) Legal Fees
2. Worker’s Compensation
a) Claim Payments 5-year average $4,300,000
b) Legal Fees 5-year average $244,000
3. General Liability
a) Claim Payments 5-year average $3,600,000
b) Legal Fees 5-year average $2,100,000
FINANCIAL OVERVIEW
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5 FINANCIAL OVERVIEW - REVENUE
RiversideCA.gov
6 FINANCIAL OVERVIEW - EXPENDITURES
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7 FINANCIAL OVERVIEW - FUND BALANCE
RiversideCA.gov
8 1. Combined cash on hand is approximately $23.2
million
2. Fund Balance at a deficit
a) Reflects long-term nature of many claims
b) Sufficient cash on hand to cover 41% of long-term liabilities.
Projected to increase to 46% in fiscal year 2022-23.
c) Actuarial Adjustments have significant impact on fund balance.
CASH POSITION AND FUND BALANCE
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9 CASH POSITION AND FUND BALANCE (CONT.)
FY18
FY19
FY20
FY21
Unaudited FY22
($30,850)
($24,630)
($25,020)
($32,132)
($34,655)
$16,180
$24,823
$29,922
$21,602
$23,216
Thousands
Cash Position and Fund Balance
Fund Balance
Cash Position
RiversideCA.gov
10 1. Claims liabilities are estimates of long-term liabilities:
a) Basis for determining appropriate level of reserves; b) Actuarial valuation based on historical data;
c) Claims often resolved for less than potential liability; and d) Cash on hand not required to service total liability today.
CLAIMS AND JUDGMENT LIABILITY BY FUND
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11 CLAIMS AND JUDGMENT LIABILITY BY FUND (CONT.)
FY18
FY19
FY20
FY21
Unaudited FY22
$29,148
$31,362
$35,830
$37,108
$38,897
$16,915
$16,932
$17,831
$15,325
$17,991
$46,063
$48,294
$53,661
$52,433
$56,888
Thousands
Claims and Judgment Liability By Fund
Worker's Compensation
General Liability
Total Claims Liability
RiversideCA.gov
12 Strategic Priority No. 5 – High Performing Government Goal No. 5.3 - Enhance communication and collaboration with community members to improve transparency, build public trust and encourage shared decision making.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
Community Trust Equity Innovation
Fiscal
Responsibility
Sustainability and
Resiliency
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13 That the Financial Performance and Budget
Committee receive, provide input on, and forward to
the City Council for approval, an annual financial
review of the City’s Self-Insurance Trust Funds for Fiscal Year 2021-22.
RECOMMENDATIONS
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