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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2006
<br />NOTE 18 - RISK MANAGEMENT —Continued
<br />General Liability, Property, Worker's Compensation and Medical — Continued
<br />aChanges in the fund's claim liability amount during the current and prior three fiscal years are as
<br />follows:
<br />Balance at
<br />Claims
<br />Balance
<br />Fiscal Year
<br />and Changes
<br />Claim
<br />at Fiscal
<br />Beginning
<br />in Estimates
<br />Payments
<br />Year End
<br />2002-2003 $ 4,261,000
<br />$ 9,440,074
<br />$ (9,120,074)
<br />$ 4,581,000
<br />2003-2004 4,581,000
<br />11,597,947
<br />(10,847,947)
<br />5,331,000
<br />2004-2005 5,331,000
<br />10,657,797
<br />(10,658,797)
<br />5,330,000
<br />2005-2006 5,330,000
<br />13,026,906
<br />(12,490,906)
<br />5,866,000
<br />r Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />LJ determined and at September 30, 2006, unreserved net assets of $8,992,655 has been designated for this
<br />purpose. The County has elected to accrue the larger of the discounted liability or undiscounted liability.
<br />At September 30, 2006, the undiscounted liability was the greater of the two amounts. The discount rate
<br />used in the calculation was 2.5 percent.
<br />NOTE 19 - COMMITMENTS AND CONTINGENCIES
<br />A. Litigation
<br />J Various suits and claims are currently pending against the County. It is impossible for the County to
<br />naccurately quantify the exposure involved given the jury's latitude in assessing compensatory and
<br />LJ 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, 2006. In the General
<br />Fund, contracts are for custodial services, maintenance of the 800 Mhz radio system, Indian River
<br />County Code Review and various other general services. In the Special Revenue Funds, contracts are
<br />for the Beach Preservation Plan, Dune Restoration Project, Pelican Island Upland Restoration Project,
<br />Jungle Trail Shoreline Stabilization, renovation of several Fire/EMS stations, numerous environmental
<br />protection services and a variety of road paving and drainage projects. In the Capital Projects Funds,
<br />contracts are for the North County Regional Park, New County Administration Building, 43rd Avenue
<br />OSub -Complex, Indian River County Jail Expansion and several stormwater projects throughout the
<br />County.
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