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('ITY OF ROSEVILLE
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31 1997
<br />Nnre IS - Ri�k Manap,�ment - continued
<br />The Risk Ma[ragemetu Furd provides comprehensive gereral liability and comprehensive automotive liability up to Ihe stamcory maximwn
<br />of $600,000. The Ciry retai� the risk of the firsi $50,000 of each a currence with an annual ma�cimwn exposure of $100,000. The Ciry
<br />purchases commercial insurarre for claims in excess of coverage provided by the Risk Management Fund and for all other risks of loss.
<br />Setded clauns have rot exceeded this wmmercia( coverage in any of the past three fiscal years. There were no significant reductions in
<br />the City's insurarce coverage in 1997.
<br />Whi(e all fiuds participare in the program, only enterprise funds make direct paytvents ro the Workers' Compensation Fund and Risk
<br />Mamgemerx Furd. An anraial ta�c is levied for atl other operating funds. Enterprise fund charges and the property tax Ievy are based on
<br />a management estimate of claims history and the amount recessary to maintain catastrophe reserves. The reserves as of December 31,
<br />1997, were $I,7A1,465 ard $1,025,436 for the Workers' Compensation Furd ard Risk Management Fund rzspectively. The claims liabiliry
<br />of $42,391 ar�d $4,000 respeccively reported in both funds at December 31, 1997, are based on [he requirements of Goverrunentai
<br />Accounting Stardards Board Statement No. 10. This statement requires that a liability tor claims be reported if infonnation prior to die
<br />issuance of the finarcial starements indicates it is probable thai a liabiliry has been incurred at die date ot the financial swtements and the
<br />a�nount of the loss can be reasonably estimared. Changes in the funds' claims liabiliry a�nount in fiscal 1995, 1996 and 1997 were:
<br />..,
<br />1997
<br />Beginning of Fiscal
<br />Year Liabilitv
<br />$ 33,370
<br />30,457
<br />45,471
<br />Beginning of Fiscal
<br />Year Liabilitv
<br />1995 5 4,000
<br />1996 4,000
<br />1997 4,000
<br />Note 16 - LitiFation
<br />Worker's Conmensation Fund
<br />Current Year Gaims and
<br />�gei in Estimates Claims PaNnents
<br />S 48,048 S SQ961
<br />91,9� 76,910
<br />48,892 51,972
<br />Risk n4anaeement Fund
<br />Current Year Claims and
<br />Changes in Estimates
<br />S 100,162
<br />86,990
<br />155,417
<br />Gaims Pavments
<br />S 100,162
<br />86,990
<br />155,417
<br />Balance at
<br />Fiscal Year End
<br />S 30,457
<br />45,471
<br />42,391
<br />Salance at
<br />Fiscal Year E�d
<br />$ 4,000
<br />4,000
<br />4,000
<br />The City had the ucual and eusromary types of miscellaneous claims pending a[ year end, mos[ly of a minor natwe, and ucually all
<br />covered by insurance carried for that purpose or thz City has reserved funds for se[deinent. The Ciry also carries persorul injury
<br />inswance against suics for false arrest, libel, slander, viola[ion of privacy, wrongful en�ry, etc. which can arise from enfbrcement of
<br />the city code and general laws.
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