ended June 30, 2007, 2006 and 2005 totaled $356,691, $394,028 and $413,200, respectively,
13) Contingenciesand Commitments
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
collected, may constitute a liability of the applicable funds. The amount, which may be disallowed by the grantor, cannot be determined at this time.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinate, it is the opinion of the City's legal counsel that the resolution of these matters will not have a material adverse effect on the financial condition of the City.
14) Risk ManagementObligations
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. The City established a limited risk management program for workers' compensation in fiscal year 1996. Premiums are paid into the internal service fund by the general and public utility funds and are available to pay claims, claim reserves, reinsurance premiums and administrative costs of the program. The surplus retained earnings resulting from charges for anticipated future catastrophic losses have been designated.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000 with an aggregate claim limit of $1,000,000. Liabilities include an amount for claims that have been incurred but not reported (IBNRs) . Claim liabilities are calculated considering recent claims settlement trends including frequency and amount of pay-outs and other economic and social factors.
The liability (current) for claims and judgments is reported in the internal service fund because it is expected to be liquidated with expendable available financial resources. Changes in the balances of claims liabilities during the past year are as follows:
Unpaid claims, beginning of fiscal year Incurred claims (including IBNRs) Claim payments Unpaid claims, end of fiscal year
255,930 288,993 (228.695> 261T758
15) Council Members Compensation
Each council member receives monthly compensation. The following is a list of council members and their compensation for the fiscal year ended June 30,2007: