12/27/2022
1 RiversideCA.gov1
RiversideCA.gov
City CouncilJanuary 10, 2023FINANCIAL OVERVIEW OF THE CITY’S SELF-INSURANCE TRUST FUNDSFinance Department RiversideCA.gov2
1. Worker’s Compensation Fund– Administered byHuman Resources2. General Liability Fund– Risk Management Division ofthe Finance Department has responsibility for theoversight of the program, and the City Attorney’sOffice is responsible for administering all third-partyclaims submitted to the City.OVERVIEW 12/27/2022
2 RiversideCA.gov3
1. General Liability – Policy Aggregate Limit of $25,000,000a) Self-Insured at $3,000,000 per occurrence2. Worker’s Compensation – Policy Limit Aggregate of$25,000,000a) Self-Insured at $3,000,000 per occurrence3. Two tort liability claims settled in the last ten yearsexceeded the City's $3M self-insured retentionINSURANCE COVERAGE AND EXPOSURE RiversideCA.gov4
1. Large Cash Outlaysa) Claim Paymentsb) Legal Fees2. Worker’s Compensationa) Claim Payments 5-year average $4,300,000b) Legal Fees 5-year average $244,0003. General Liability a) Claim Payments 5-year average $3,600,000b) Legal Fees 5-year average $2,100,000FINANCIAL OVERVIEW 12/27/2022
3 RiversideCA.gov5
FINANCIAL OVERVIEW - REVENUE
RiversideCA.gov6
FINANCIAL OVERVIEW - EXPENDITURES
12/27/2022
4 RiversideCA.gov7
FINANCIAL OVERVIEW - FUND BALANCE
RiversideCA.gov8
1. Combined cash on hand is approximately $23.2 million2. Fund Balance at a deficita) Reflects long-term nature of many claimsb) 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 12/27/2022
5 RiversideCA.gov9
CASH POSITION AND FUND BALANCE (CONT.)
FY18FY19FY20FY21Unaudited FY22($30,850)($24,630)($25,020)($32,132)($34,655)$16,180 $24,823 $29,922 $21,602 $23,216 ThousandsCash Position and Fund Balance Fund Balance
Cash Position
RiversideCA.gov10
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; andd) Cash on hand not required to service total liability today.CLAIMS AND JUDGMENT LIABILITY BY FUND 12/27/2022
6 RiversideCA.gov11
CLAIMS AND JUDGMENT LIABILITY BY FUND (CONT.)
FY18 FY19FY20FY21Unaudited 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 ThousandsClaims and Judgment Liability By Fund Worker's Compensation
General Liability
Total Claims Liability
RiversideCA.gov12
Strategic Priority No. 5 –High Performing GovernmentGoal No. 5.3 - Enhance communication and collaboration with community members to improve transparency, build public trust and encourage shared decision making.Cross-Cutting ThreadsSTRATEGIC PLAN ALIGNMENT Community Trust EquityInnovation
Fiscal ResponsibilitySustainability and Resiliency
12/27/2022
7 RiversideCA.gov13
That the City Council approve the financial overviewof the City’s Self-Insurance Trust Funds for Fiscal Year2021-22.RECOMMENDATIONS