Notes to financial statements 37

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 Aggregate

Retention Stop Loss $ 25,000 $ 3,000,000 325,000 16,966,059

Property General Liability

Workers’ Compensation Self-Insured Deductible

Retention Stop Loss $ 100,000 -$ 25,000 1,806,319

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 2021 2020

$ 5,291,373 $

4,926,075 21,810,083 15,890,218 (21,147,416) (15,524,920) $ 5,954,040 $ 5,291,373