ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 96
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 7 - Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all City employees, permits
them to defer a portion of their salary until future years. The deferred compensation is not
available to employees until termination, retirement, death, or unforeseeable emergency.
Plan amendments have been made so that the plan is in compliance with IRC Section 457,
as amended by the 1996 changes to the tax code. The assets are held in various custodial
accounts. All amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable to those amounts, property, or
rights are solely the property and rights of the various participants of the plan
Note 8 - Risk Management
Property, Casualty, Liability and Workers’ Compensation
The City is exposed to a variety of claims and losses including property damage, liability
and workers' compensation for which it participates in an insurance pool with other State of
Florida cities. Premiums are determined based on each city's loss ratio for the previous
year. The pool, although largely self-insured, purchases excess coverage from commercial
carriers.
During the last five years the experience rate as it relates to the loss fund set up by the
City’s insurance provider is as follows:
Loss Fund Analysis Vaulation as of September 30
Year
2020
2019
2018
2017
2016
Loss Fund
756,650
651,560
627,707
604,727
525,941
Experience
48,518
168,672
472,676
522,759
169,977
Percentage Use
of Loss Fund
6.41%
25.89%
75.30%
86.45%
32.32%
The City property and auto coverage has a $1,000 deductible. An additional 2% deductible
is applied to any named windstorm. Property located within a flood zone must maintain
separate coverage. Automatic coverage for increases in property values for the remainder
of policy term, up to $5,000,000 in total insurable values at no additional premium. General
liability is set at $1,800,000 per member with an aggregate of $5,400,000. Workers’
compensation group limits are set at $350,000 with retention of $650,000. In addition to all
coverage, the city has elected to carry excess liability insurance in the amount of
$3,000,000. Terrorism is excluded for buildings valued in excess of $50,000,000, which
does not affect our city.
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