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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 /> i 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 11) 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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