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1 RiversideCA.gov
1 RiversideCA.gov
Financial Overview of the
City’s Self-Insurance Trust
Funds
City Council
February 25, 2025
Finance Department
RiversideCA.gov
2 • Worker’s Compensation Fund – Administered by Human
Resources
• General Liability Fund
– Program Oversight: Finance/Risk Management Division
– Claims Administration: City Attorney’s Office is responsible for administering all third-party claims submitted to the City.
OVERVIEW
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2 RiversideCA.gov
3 INSURANCE COVERAGE AND EXPOSURE
General Liability & Workers' Compensation Policy Structure Workers' Compensation (WC)General Liability
Safety National Excess WC
$25,000,000 Aggregate
Allied World National Assurance
Excess Layer #2
$10,000,000 per Occurrence
$10,000,000 Aggregate
Homesite/Kinsale
Excess Layer #1
$10,000,000 per Occurrence
$10,000,000 Aggregate
Safety National
Lead Layer
$5,000,000 per Occurrence
$5,000,000 Aggregate
Self-Insured Retention
$3,000,000
Self-Insured Retention
$3,000,000
RiversideCA.gov
4 • Large Cash Outlays
– Claim Payments
– Legal Fees
• Worker’s Compensation
– Claim Payments 5-year average $4,386,608
– Legal Fees 5-year average $157,320
• General Liability
– Claim Payments 5-year average $4,103,137
– Legal Fees 5-year average $1,839,777
FINANCIAL OVERVIEW
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3 RiversideCA.gov
5 FINANCIAL OVERVIEW - REVENUE
RiversideCA.gov
6 FINANCIAL OVERVIEW - EXPENDITURES
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4 RiversideCA.gov
7 FINANCIAL OVERVIEW - FUND BALANCE
• 22% ($10.8M) increase in Estimated Claims & Judgements • Projected FY 2023/24 reserve 59%; actual 48%
• Projected FY 2024/25 reserve 59%; updated projection 44% RiversideCA.gov
8 • Combined cash on hand is approximately $29.3 million • Fund Balance at a deficit
– Reflects long-term nature of many claims
– Actuarial Adjustments have significant impact on fund balance.
– Sufficient cash on hand to cover 48% of long-term liabilities. •Rates will be adjusted in future budgets to regain the 50% policy reserve requirement within 3 years.
CASH POSITION AND FUND BALANCE
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9 CASH POSITION AND FUND BALANCE (CONT.)
FY20
FY21
FY22
FY23
FY24
$(25,020)
$(32,132)
$(34,655)
$(24,423)
$(31,763)
$29,922
$21,602
$23,216
$26,420
$29,303
(In Thousands)
Cash Position and Fund Balance
Fund Balance Cash Position
RiversideCA.gov
10 • Claims liabilities are estimates of long-term liabilities:
– Basis for determining appropriate level of reserves;
– Actuarial valuation based on historical data;
– Claims often resolved for less than potential liability; and – 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.)
FY20
FY21
FY22
FY23
FY24
$35,830
$37,108
$38,897
$35,718
$37,772
$17,831
$15,325
$17,991
$14,184
$22,891
$53,661
$52,433
$56,888
$49,902
$60,663
(In Thousands)
Claims and Judgment Liability By Fund
Worker's Compensation General Liability Total Claims Liability RiversideCA.gov
12 STRATEGIC PLAN ALIGNMENT
HIGH PERFORMING GOVERNMENT
CROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal
Responsibility
Sustainability
and Resiliency
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7 RiversideCA.gov
13 That the City Council approve the financial overview of the City’s Self-Insurance Trust Funds for Fiscal Year 2023/24.
RECOMMENDATION
13