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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2012
<br />NOTE 22 - RISK MANAGEMENT - Continued
<br />General Liability, Property, Worker's Compensation and Medical - Continued
<br />Changes in the fund's claim liability amount during the current and prior three fiscal years are as
<br />follows:
<br />Balance at Claims Balance
<br />Fiscal Year and Changes Claim at Fiscal
<br />Beginning in Estimates Payments Year End
<br />2008-2009 $ 6,895,000 $ 15,637,406 $ (14,657,406) $ 7,875,000
<br />2009-2010 7,875,000 13,940,099 (13,916,099) 7,899,000
<br />2010-2011 7,899,000 12,901,425 (12,923,425) 7,877,000
<br />2011-2012 7,877,000 13,967,831 (13,770,831) 8,074,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined and at September 30, 2012, unreserved net position of $24,330,918 has been designated for
<br />this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
<br />liability excluding non -incremental claims adjustment expenses. At September 30, 2012, the
<br />undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was
<br />2.5 percent.
<br />NOTE 23 - COMMITMENTS AND CONTINGENCIES
<br />A. Litigation
<br />Various suits and claims are currently pending against the County. It is impossible for the County to
<br />accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
<br />punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
<br />vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
<br />The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
<br />course of its operations. In the opinion of management and based on the advice of legal counsel, the
<br />ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
<br />County.
<br />B. Contracts and Other Commitments
<br />The County has various contracts and commitments outstanding at September 30, 2012. In the General
<br />Fund, contracts are for janitorial services, beach park landscape and custodial maintenance and external
<br />auditing services. In the Special Revenue Funds, contracts are for the construction of Fire Station 13 in
<br />the southern part of the County on 4th Street and 43rd Avenue, Oslo Road Widening from 43rd Avenue
<br />to 27th Avenue (Phase II) and from 58th Avenue to 43rd Avenue (Phase III), 66th Avenue Roadway
<br />Improvements from 16th Street to 4th Street, 27th Avenue Milling and Resurfacing, as well as a variety
<br />of other road paving and drainage projects. In the Capital Projects Fund, contracts are for the South
<br />County Regional Park Intergenerational Recreation Facility, PC South Algal Turf Scrubber Nutrient
<br />Recovery System and several sidewalk and road improvement projects throughout the County.
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