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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2 0 0 3 NOTE 5 -OTHER INFORMATION (Continued) A. Risk management (Continued) Enterprise fund charges and the property tax levy are based on a management estimate of claims history and the amount necessary to maintain catastrophic reserves. The reserves as of December 31,2003, were $2,072,332 and $ 841,063 for the Workers' Compensation Fund and Risk Management Fund, respectively. The claims liability of $82,386 and $95,196, respectively, reported in both funds at December 31, 2003 are based on the requirements of Governmental Accounting Standards Board Statement No. 10. This statement requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated (IBNR). Changes in the funds' claims liability amount in fiscal 2002 and 2003 were: 2002 2003 2002 NCO B. Contingent liabilities Workers' Compensation Fund Beginning of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability in Estimates Payments Liability 54,1657 $ 411.599 S 401.246 5 56,000 56,6N ]04}413 78,027 82,3X6 Risk Management Fund Beginning of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability in Estimates Payments Liability 14'000 205525 s 20}5 25 S 141. 4.W0 97 647 1 6x451 951.196 The City had the usual and customary types of miscellaneous claims pending at year end mostly of a minor nature, and usually all covered by insurance carried for that purpose or the City has reserved funds for settlement. The City also carries personal injury insurance against suits for false arrest, libel, slander, violation of privacy, wrongful entry, etc. which can arise from enforcement of the city code and general laws. 65