Riverside City Council
January 27, 2026

1/14/2026
1 RiversideCA.gov1
RiversideCA.govFinancial Review of the City’s Self-Insurance Trust Funds City CouncilJanuary 27, 2026Finance Department
RiversideCA.gov2
•Workers’ 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 1/14/2026
2 RiversideCA.gov3
INSURANCE COVERAGE AND EXPOSUREGeneral Liability & Workers' Compensation Policy StructureWorkers' Compensation (WC)General Liability Safety National Excess WC $25,000,000 AggregateAllied World National Assurance Excess Layer #2$10,000,000 per Occurrence$10,000,000 AggregateHomesite/KinsaleExcess Layer #1$10,000,000 per Occurrence $10,000,000 Aggregate Safety National Lead Layer$5,000,000 per Occurrence$5,000,000 AggregateSelf-Insured Retention $3,000,000Self-Insured Retention $4,000,000 RiversideCA.gov4
•Large Cash Outlays–Claim Payments–Legal Fees•Workers’ Compensation–Claim Payments 5-year average $4,666,074–Legal Fees 5-year average $130,158•General Liability –Claim Payments 5-year average $4,047,378–Legal Fees 5-year average $1,792,301FINANCIAL OVERVIEW 1/14/2026
3 RiversideCA.gov5
FINANCIAL OVERVIEW - REVENUESelf Insurance Trust Funds Analysis (Workers' compensation and General Liability)Fund Activity (Thousands) UnauditedProjectedFY21 FY22 FY23 FY24 FY25 FY26Beginning Fund Balance (25,020)$ (32,132)$ (34,654)$ (24,423)$ (31,763)$ (37,438)$ Charges for Services-WC5,029 9,235 9,697 10,040 9,000 9,000 Charges for Services-GL8,235 8,793 11,154 13,385 13,115 13,534 Interest Income-WC(13) (525) 245 904 1,479 - Interest Income-GL(39) (476) 570 162 332 130 Other Income-WC2 3 102 2 7 - Other Income-GL416 130 43 1,892 5 - General Fund Contribution-GL- 2,500 - - - - Total Revenue 13,629 19,660 21,810 26,385 23,938 22,664 Audited Data RiversideCA.gov6
FINANCIAL OVERVIEW - EXPENDITURESFund Activity (Thousands) UnauditedProjectedFY21 FY22 FY23 FY24 FY25 FY26 Direct Personnel-WC370 365 543 665 775 690 Direct Personnel-GL737 366 510 774 1,514 1,389 Prof.Serv & Other Non-Personnel-WC112 102 101 186 225 212 Prof.Serv & Other Non-Personnel-GL311 253 1,052 446 226 344 Indirect Charges-WC1,242 1,092 1,076 1,209 1,242 1,287 Indirect Charges-GL3,429 3,751 3,824 3,991 4,017 4,255 Claims & Judgments-WC3,713 4,825 4,549 5,191 5,052 5,080 Claims & Judgments-GL7,557 2,796 3,139 5,882 862 3,200 Legal Fees-WC201 109 146 128 67 468 Legal Fees-GL2,783 2,154 1,016 1,463 1,545 1,988 Premiums-WC563 552 624 743 697 906 Premiums-GL708 1,106 1,480 1,876 2,828 2,561 Actuarial Adjustment-WC1,278 1,789 (3,179) 2,054 2,811 2,664 Actuarial Adjustment-GL(2,506) 2,666 (3,807) 8,707 7,390 (1,282) Misc. Expense-WC241 253 502 407 360 463 Misc. Expense-GL2 3 2 2 2 8 Total Expense 20,741 22,183 11,578 33,726 29,613 24,233 Audited Data 1/14/2026
4 RiversideCA.gov7
FINANCIAL OVERVIEW - FUND BALANCE•17% ($10.2M) increase in Estimated Claims & Judgements•Projected FY 2024/25 reserve 44%; actual 48%•Projected FY 2025/26 reserve 47%Fund Activity (Thousands) UnauditedProjectedFY21 FY22 FY23 FY24 FY25 FY26Ending Fund Balance (32,132)$ (34,654)$ (24,423)$ (31,763)$ (37,438)$ (39,007)$ Cash Position$21,602 $23,216 $26,420 $29,303 $34,016 $33,829 Estimated Claims & Judgments$52,433 $56,888 $49,902 $60,664 $70,865 $72,247Cash Balance as a % of Total Liability 41% 41% 53% 48% 48% 47%Audited Data RiversideCA.gov8
•Combined cash on hand is approximately $34 million•Fund Balance at a deficit–Reflects long-term nature of many claims–Actuarial Adjustments have significant impact on fund balance.–Sufficient cash on hand to cover 48% of long-term liabilities.•Rates will be adjusted in future budgets to regain the 50% policy reserve requirement within 3 years.CASH POSITION AND FUND BALANCE 1/14/2026
5 RiversideCA.gov9
CASH POSITION AND FUND BALANCE (CONT.)
FY21FY22FY23FY24FY25$(32,132)$(34,655)$(24,423)$(31,763)$(37,438)$21,602 $23,216 $26,420 $29,303 $34,016 ThousandsCash Position and Fund BalanceFund BalanceCash Position RiversideCA.gov10
•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 1/14/2026
6 RiversideCA.gov11
CLAIMS AND JUDGMENT LIABILITY BY FUND (CONT.)
FY21FY22FY23FY24FY25$37,108 $38,897 $35,718 $37,772 $40,584 $15,325 $17,991 $14,184 $22,891 $30,281 $52,433 $56,888 $49,902 $60,663 $70,865 (In Thousands)Claims and Judgment Liability By FundWorker's CompensationGeneral LiabilityTotal Claims Liability RiversideCA.gov12
That the City Council approve the annual financial review ofthe City’s Self-Insurance Trust Funds for Fiscal Year 2024/25.RECOMMENDATION