Annual_Report_1989_001 - Laserfiche WebLink

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1989 did show an higher interest banking agr2ement increase in interest earnings due primarilp to rates, larger cash balances and a favorable which went into effect in 1989. The following is a history of earnings by year: Year 1983 1984 1985 1986 1987 1988 1989 Risk ffianagement Internal Service Funds Earninas $1,223,593 1,485,822 1,483,921 2,522,613 2,021,941 2,140,566 2,743,623 The Workers' Compensation Self-Insurance Fund was established to service workers' compensation insurance claims. All awards of compensation, legal fees, administrative costs and the premium for excess coverage are paid from this fund. The Workers' Compensation Reinsurance Association provided excess coverage for all claims in 1989 in excess of $190,000, with no limits. The program has proven to be very successful since it was established in 1980. No property taxes have been levied for the worker's compensation program in 1986, 1987, 1988, and 1989. The City, in 1987, established a new internal service fund for General Risk Management. A transfer of $500,000 was made from the General Fund, which previously had been reserved for emergency and natural disasters, to the new Risk Management Fund. Through a process of outstanding claim experience, continuing risk management reviews by management, and the increasing of the deductible on general liability and property damage, the City has been lowering its insurance cost. As part of a long range plan of cost-effective risk management, the City intends to move toward further self-insurance. The establishment of a risk man- agement fund will enable the program to develop in an actuarially sound manner. The City currentl of $100,000. In general liability Other Independent ?�udit y has a$50,000 deductible with an annual limit addition, State Law does �imit the C.ity's to $600,000. State law provides that the City may arrange for examination of its books by a certified public accountant or the State Auditor. 16