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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2010
<br />NOTE 22 - RISK MANAGEMENT - Continued
<br />Changes in the fund's claim liability amount during the current and prior three fiscal years are as
<br />follows:
<br />Claims
<br />and Changes
<br />in Estimates
<br />$ 14,282,793
<br />14,209,397
<br />15,637,406
<br />13,940,099
<br />Claim
<br />Pavments
<br />$ (13,589,793)
<br />(13,873,397)
<br />(14,657,406)
<br />(13,916,099)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 6,559,000
<br />6,895,000
<br />7,875,000
<br />7,899,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined and at September 30, 2010, unreserved net assets of $21,164,759 have 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, 2010, 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, 2010. In the General
<br />Fund, contracts are for custodial services and external auditing services. In the Special Revenue Funds,
<br />contracts are for Sector 3 beach restoration, Old Dixie Highway bridge replacement, 43rd Avenue and
<br />66th Avenue roadway expansions as well as a variety of other road paving and drainage projects. In the
<br />Capital Projects Fund, contracts are for the expansion of the 800 Mhz radio system, South County Park
<br />Phase III improvements, 53rd Street roadway improvements, and several sidewalk and road
<br />improvement projects throughout the County. In the Enterprise Funds, contracts are for the North
<br />County Reverse Osmosis Plant raw water transmission system, Spoonbill Marsh Wetlands, Utility
<br />software implementation and various other water and sewer projects.
<br />W.
<br />Balance at
<br />Fiscal Year
<br />Beginning_
<br />2006-2007
<br />$ 5,866,000
<br />2007-2008
<br />6,559,000
<br />2008-2009
<br />6,895,000
<br />2009-2010
<br />7,875,000
<br />Claims
<br />and Changes
<br />in Estimates
<br />$ 14,282,793
<br />14,209,397
<br />15,637,406
<br />13,940,099
<br />Claim
<br />Pavments
<br />$ (13,589,793)
<br />(13,873,397)
<br />(14,657,406)
<br />(13,916,099)
<br />Balance
<br />at Fiscal
<br />Year End
<br />$ 6,559,000
<br />6,895,000
<br />7,875,000
<br />7,899,000
<br />Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
<br />determined and at September 30, 2010, unreserved net assets of $21,164,759 have 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, 2010, 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, 2010. In the General
<br />Fund, contracts are for custodial services and external auditing services. In the Special Revenue Funds,
<br />contracts are for Sector 3 beach restoration, Old Dixie Highway bridge replacement, 43rd Avenue and
<br />66th Avenue roadway expansions as well as a variety of other road paving and drainage projects. In the
<br />Capital Projects Fund, contracts are for the expansion of the 800 Mhz radio system, South County Park
<br />Phase III improvements, 53rd Street roadway improvements, and several sidewalk and road
<br />improvement projects throughout the County. In the Enterprise Funds, contracts are for the North
<br />County Reverse Osmosis Plant raw water transmission system, Spoonbill Marsh Wetlands, Utility
<br />software implementation and various other water and sewer projects.
<br />W.
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