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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 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, 2012, were $ 1,474,274 and $ 1,3 09,276 for the Workers' Compensation Fund and Risk Management Fund, respectively. The claims liability of $ 99,305 and $16,030, respectively, reported in both funds at December 31, 2012 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 2011 and 2012 were: 2011 2012 2011 2012 Workers' Compensation Fund Beginning of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability 109,23 5 11 7, 044 Beginning of Fiscal Year Liability B. Subsequent events 71,354 221000 in Estimates 186,446 133,821 Current Year Claims and Changes in Estimates (45,767) 37,863 Payments Liability 178,637 117,044 151,560 99,305 Ending of Claims Fiscal Year Payments Liability 3,587 221000 43,833 16,030 On April 11, 2013, the City issued $3,980,000 of G.O. Municipal Building Bonds with an interest rate of .7990 %. The proceeds were used to advance refund $4,750,000 of outstanding G.O. Building Bonds, Series 2003A which had interest rates of 3.750% to 4.125% . The net proceeds were deposited into a Crossover Escrow Fund with an escrow agent to provide payment of the principal maturities and interest of the refunded bonds through the call date of March 1, 2014. The refunding resulted in a net present value savings of $317,634. 65