Notes to Financial Statements

The self-insured retention is summarized as follows:

The City has purchased commercial insurance for claims in excess of these amounts. Settled claims resulting from the risks described above have not exceeded commercial insurance coverage for the past five years. The City insurance program did not have a significant reduction in insurance coverages compared to prior years. All funds of the City participate in the program except for liability coverage for the Airport Fund, which is insured under a separate policy purchased from an outside insurance carrier. Amounts to be provided for funding of the self-insured retention are based on actuarial estimates of the amounts necessary to pay and current year claims, prior year claims, and to establish a reserve for catastrophic losses. A liability in the amount of $3,654 was actuarially determined using a discount rate of 2% to cover reported and unreported insurance claims payable at September 30, 2022. It is estimated that $453 and $1,376 of the liability is current and due within one year for liability and workers compensation, respectively. The remaining amount will be due in future years.

The following schedule represents the changes in claims liability for the past two fiscal years for the City’s selfinsurance program:

7) Commitments and Contingencies Construction Commitments

Construction-in-progress in the governmental funds as of September 30, 2022 was $11,895 . Capital related commitments of $35,343 were assigned in the Capital Improvement Fund at fiscal year-end. Of this latter amount, $16,599 is attributable to budgeting capital projects whereas $18,744 is associated with encumbrances. See Note 1 for City commitments that are included in fund balance designations. Construction-in-progress in the proprietary funds as of September 30, 2022 was $119,297. The estimated cost to complete proprietary construction projects was approximately $100,223, of which approximately $46,000 will be funded by State and/or Federal grants and passenger facility charges as included in the budget for the year ended September 30, 2022.

Grants

All expenditures financed by Federal and State grants are subject to audit by the granting agencies to determine if such expenditures comply with conditions of the grant. Management believes that no material liability will arise from any such audits.

Claims and Lawsuits

The City is involved in several claims and is a defendant in pending and threatened litigation. While it is not feasible to predict or determine the ultimate outcome of all these matters, in management’s opinion, they will not have a material adverse effect upon the accompanying financial statements.