City of Coral Springs, Florida Notes to Financial Statements Note 11.
Restricted Net Position
Restricted net position in the government-wide governmental activities statements include $3,155,192 for fire safety protection, $2,856,260 for charter school operations, $2,781,753 related to forfeited confiscated property proceeds restricted for law enforcement activity, $1,236,843 for preservation and protection of public arts, $760,984 for tree preservation, $572,610 for affordable housing programs, and $17,773,878 for pension benefits. Restricted net position in the Water and Sewer Fund of $1,661,782 are unspent impact fees restricted for capital improvements. Restricted net position for the Community Redevelopment Agency (CRA) of $882,533 are unspent tax increment financing revenues restricted for capital projects. Note 12.
Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to and destruction of assets; errors and omissions; injuries to employees; employee health and natural disasters. The City’s Self-Insurance Internal Service Fund is used to account for and finance both uninsured and insured risks of loss. Coverage is provided as follows:
Type Auto Liability Health
Self-Insured Retention $ 25,000 325,000
Aggregate Stop Loss $ 3,000,000 16,966,059
Property General Liability
Self-Insured Retention $ 100,000 25,000
Deductible Stop Loss $ 1,806,319
Workers’ Compensation
As specified by applicable Federal and Florida Statutes
Settled claims have not exceeded the City’s aggregate excess coverage in force for the last three years. All operating funds of the City participate in the program and make payments to the Self-Insurance Internal Service Fund based on estimates of the amounts needed to pay prior and current claims. The estimated liability on pending claims on September 30, 2021 of $5,954,040, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicated that it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Changes in the balances of claims payable for 2021 and 2020, are as follows:
Claims payable, beginning of the year Incurred claims and changes in estimates (including IBNRs) Payments on claims Claims payable, end of the year 68
2021 5,291,373 21,810,083 (21,147,416) $ 5,954,040 $
2020 4,926,075 15,890,218 (15,524,920) $ 5,291,373 $
