1. SCORE Funding Calculations
For The liability and workers’ compensation programs
FY 2017/18
SCORE Board Meeting Presentation, October 26, 2017

2. Purpose Explain how the General and Auto Liability (GL)
And Workers’ Compensation (WC)
funding is calculated per the
Master Plan Documents
for each Program

3. Outline Exposure Base – “Projected Payroll”
Experience Base – “Experience Modification Factor” (EMF)
GL - Funding Calculations
WC – Funding Calculations

4. Exposure Base For BOTH Programs = Projected Payroll
SCORE has traditionally used the DE9 payroll
for the most recent calendar year and
added an inflation factor of 3%.
For FY 2017/18 payroll we use
2016 Calendar Year Payroll adjusted
3% for inflation = Projected Payroll (PP).
See Column B in Both Funding Spreadsheets A B
Formula/Allocation
CY 2016 x 3% Inflation Factor
MEMBER ENTITY
Projected Payroll (PP)
Rate/Amount
1.03
Biggs
$398,466
Colfax
$664,432
Dunsmuir
$655,259
Etna
$376,289
Fort Jones
$311,071
Isleton
$200,376

5. BOTH Programs Use Experience Modification Factors to Adjust Projected Payroll
Ex-Mod Adjusted Payroll (ExP) is used for the remaining loss funding calculations A B C D
Formula/Allocation
CY 2016 Payroll x 3% Inflation Factor
Relative Loss Rate x Credibility Factor
Projected Payroll x Ex Mod
MEMBER ENTITY
Projected Payroll (PP)
Ex Mod
Ex-Mod Adjusted Payroll (ExP)
Rate Per $100 or Amount
1.03
Calc
Biggs
$398,466
0.96
$384,101
Colfax
$664,432
0.89
$590,566
Dunsmuir
$655,259
1.57
$1,025,854

6. Liability Funding – Ex Mod Calculation
Divide member losses for last five complete years,
capped at $50,000, by the corresponding member payroll to
obtain the Member’s Loss Rate (LR).
Divide the Member Loss Rate by the total SCORE Loss Rate ($1.82)
to obtain the Relative Loss Rate (RLR) for member.
Multiply the Relative Loss Rate
by a Credibility Factor - See next page
(Total Member Losses/ Total Member Payroll)
X 100
Member LR/
Total Pool LR
Member Loss Rate
Per $100 Payroll (LR)
Relative Loss Rate (RLR)
MEMBER ENTITY
Biggs
$0.56
0.31
Colfax
$1.10
0.61
Grand Total SCORE
$1.82
$1.00

7. Liability Funding – Credibility Factor
Multiply the Relative Loss Rate by a
Credibility Factor
Credibility Factor = Member Payroll/
(Member Payroll + Largest member Payroll)
Susanville at $3,784,518 payroll is largest
Ex Mod = Member Relative Loss Rate x Member Credibility Factor + (One - Member Credibility Factor) Q R S T
Member LR/Total Pool LR
CY 2016 x 1.03 Inflation Factor
PP/PP +
Largest Member Projected Payroll)
Member RLR x Member Cred +
(1- Member Cred)
MEMBER ENTITY
Relative Loss Rate (RLR)
Projected Payroll(PP)
Credibility Factor (Cred)
Ex Mod
Biggs
0.31
$391,965
9.39%
0.93
Colfax
0.61
$458,398
10.80%
0.96
Susanville
0.57
$3,784,518
50.0%
0.78
Grand Total
$1.00
$20,569,511
1.00

8. Liability Funding- Banking Layer ($0 to $25,000)
Banking Layer – we divide the
Ex Mod Adjusted Payroll (ExP) by 100
and multiply x the Rate per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($1.37 for FY 17/18).
See Column E in the Funding Spreadsheet –
(ExP/$100) x Rate A B C D E
Formula/Allocation
CY 2016 Payroll x 3% Inflation Factor
Relative Loss Rate x Credibility Factor
Projected Payroll x Ex Mod
(ExP/$100) x Rate
MEMBER ENTITY
Projected Payroll (PP)
Ex Mod
Ex-Mod Adjusted Payroll (ExP)
BANKING LAYER at 70% CL $0 to $25,000
Rate Per $100 or Amount
1.03
Calc
$1.37
Biggs
$398,466
0.96
$384,101
$5,334
Colfax
$664,432
0.89
$590,566
$8,202
Dunsmuir
$655,259
1.57
$1,025,854
$14,247

9. Liability Funding – Shared Layer ($25,001 to $500,000)
Shared Layer – we multiply the Ex-Mod Adjusted
Payroll (ExP)/100 times the Rate
per $100 of payroll
at the 70% Confidence Level (CL) as
calculated by the actuary ($2.12 for FY 17/18)
to obtain the Shared Layer Funding.
See columns D & F A D F
Formula/Allocation
Projected Payroll x Ex Mod
(ExP/$100) x Rate
MEMBER ENTITY
Ex-Mod Adjusted Payroll (ExP)
SHARED LAYER at 70% CL $25,000 to $500,000
Rate/Amount
$2.12
Biggs
$384,101
$8,211
Colfax
$590,566
$12,624
Dunsmuir
$1,025,854
$21,929

10. Liability Funding – Excess Layer ($500,001 to $40 million) CJPRMA Premium
Excess Layer – we multiply the Ex-Mod Adjusted
Payroll (ExP)/100 times the Rate
per $100 of payroll
as calculated by the CJPRMA actuary
($0.63 for FY 17/18)
to obtain the Excess Layer Funding.
See column G D G
Formula/Allocation
Projected Payroll x Ex Mod
(ExP/$100) x Rate
MEMBER ENTITY
Ex-Mod Adjusted Payroll (ExP)
EXCESS LAYER $500k TO $40M CJPRMA PREMIUM
Rate/Amount
$0.62
Biggs
$384,101
$2,426
Colfax
$590,566
$3,731

11. CSAC/CPIEA Pollution Coverage
We multiply the Projected Payroll (PP) times the Rate per $100 of payroll
Total CSAC/CPIE Premium = $6,614
Total participating member payroll = $16,699,057
Premium converted to rate per $100 of payroll
($6,614/$16,699,057) x 100 = $
Charged to members based on Projected Payroll x Rate (J) L
Formula/Allocation
(PP/100) x Rate
MEMBER ENTITY
CSAC/CPIEA Pollution Coverage
Rate/Amount $
Biggs
$146
Colfax
$244

12. Liability Funding – Administrative Expenses
Multiply fifty (50) percent of the Admin Expenses
by Member projected payroll divided by
the total projected payroll of all Members, Column N;
plus
A share of the remaining “Administrative Expenses”
that is equal among all the members. Column M
18 total members
Total Admin is shown in Column O M N O U
Formula/Allocation
(Total Admin/2)/ Number of Members
(Total Admin/2)/ %PP
(M) + (N)
Member PP/ Total PP
MEMBER ENTITY
50% ADMIN EQUAL SHARES
50% ADMIN % PAYROLL
Proposed FY Admin Total
% Payroll (%PP)
Rate/Amount
$238,368
Biggs
$13,243
$4,310
1.81%
Colfax
$7,187
3.02%

13. Liability Funding – Total & Comparison
Banking, Shared, Excess, Pollution
and Admin Expenses are totaled
in Column P
Comparison to FY funding
In Columns (Q), (R) and (S) P Q R S
Formula or Allocation
Loss Funding + Refund + Pollution + Admin
MEMBER ENTITY
Proposed FY TOTAL FINAL DEPOSIT
FY TOTAL DEPOSIT
$ Change Overall
% Change Overall
Rate or Amount
70% CL
Biggs
$32,949
$33,168
(219)
-0.7%
Colfax
$44,028
$37,054
6,974
18.8%
Dunsmuir
$62,041
$50,678
11,364
22.4%

14. WC Funding – Mini-Cities Pool
For purposes of Loss Funding, such “Mini-Cities” pool shall be
treated as if it were a single “Participating Member”.
“Deposit Premiums” for the “Mini-Cities” pool shall be
distributed to its members in the proportion the member’s payroll is to
the total payroll of all the members of the “Mini-Cities” pool.
See Column (U) for Member % of Total Payroll
See Column (V) For Mini-Cities Members % of Mini-Cities Pool Total Payroll

15. Projected Payroll (PP) Ex-Mod Adjusted Payroll (ExP)
BOTH Programs Use Experience Modification Factors to Adjust Projected Payroll
Ex-Mod Adjusted Payroll (ExP) is used for the remaining loss funding calculations A B C D
Formula/Allocation
CY 2015 Payroll + 3% Inflation Factor
Relative Loss Rate x Credibility Factor
(Projected Payroll x Ex Mod)/ExP Adjustment Factor
MEMBER ENTITY
Projected Payroll (PP)
EX MOD
Ex-Mod Adjusted Payroll (ExP)
Rate/Amount
1.03
Calc
Dunsmuir
$501,483
$500,254
Subtotal Members
$15,457,669
0.92
$14,420,575
Biggs
$391,965
1.25
$475,000
Subtotal Mini Cities
$4,895,573
$5,932,667
Grand Total
$20,353,242

16. WC Funding – Ex Mod Calculation
Divide member losses for last four complete years, less salary continuation, capped at $50,000, by the corresponding member payroll to obtain the Member’s Loss Rate. (Column N)
Divide the Member Loss Rate by the total SCORE Loss Rate = Relative Loss Rate for member (Column O)
Multiply the Relative Loss Rate (O) by a
Credibility Factor – See next page N O
FORMULA
Total Member losses/Total Member Payroll
Member LR/Total Pool LR
MEMBER ENTITY
Loss Rate Per $100 (LR)
Relative Loss Rate Per $100 (RLR)
Dunsmuir
$2.36
$1.05
Yreka
$2.12
$0.94
Subtotal Members
$1.96
$0.87
Biggs
$0.04
$0.02
Colfax
$0.07
$0.03
Subtotal Mini Cities
$3.23
$1.43
Grand Total
$2.26
$1.00

17. WC Funding – Credibility Factor
Multiply the Relative Loss Rate (O)
by a Credibility Factor (Q)
Credibility Factor = Member Payroll/
(Member Payroll + Largest member Payroll)
Susanville at $4,091,391 payroll is largest
Ex Mod = Member Relative Loss Rate x
Member Credibility Factor +
(One - Member Credibility Factor)
See Column R

18. WC Funding- Banking Layer ($0 to $25,000)
Banking Layer – we multiply the Ex Mod Adjusted
Payroll (ExP)/$100 times the Rate per $100 of payroll
at the 75% Confidence Level (CL) as
calculated by the actuary ($1.73 for FY 17/18).
See Column E in the Funding Spreadsheet –
(ExP/$100) x Rate D E
(Projected Payroll x Ex Mod)/ExP Adjustment Factor
(ExP/$100) x Rate
MEMBER ENTITY
Ex-Mod Adjusted Payroll (ExP)
BANKING LAYER % CL
$0 to $25K
Rate/Amount
$1.73
Colfax
$500,254
$8,504

19. WC Funding – Shared Layer ($25,001 to $250,000)
Shared Layer – we multiply the Ex Mod Adjusted
Payroll (ExP)/$100 times the Rate per $100 of payroll
at the 75% Confidence Level (CL) as
calculated by the actuary ($4.03 for FY 17/18).
See Column F in the Funding Spreadsheet –
(ExP/$100) x Rate A F
Formula/Allocation
(ExP/$100) x Rate
MEMBER ENTITY
SHARED LAYER 75% CL
$25K to $250K
Rate/Amount
$4.03
Yreka
$134,554
Subtotal Members
$814,401
Biggs
$15,552
Subtotal Mini Cities
$73,699
Grand Total
$888,101

20. WC Funding – Excess Layer ($250,000 to Statutory Limit) LAWCX Premium
Excess Layer – we multiply the Ex Mod Adjusted
Payroll (ExP)/$100 times the Rate per $100 of payroll
as calculated by the LAWCX actuary
($1.27 for FY 17/18).
See Column G in the Funding Spreadsheet –
(ExP/$100) x Rate A G
Formula/Allocation
(ExP/$100) x Rate
MEMBER ENTITY
EXCESS LAYER $250K TO STATUTORY LAWCX PREMIUM
Rate/Amount
$1.27
Dunsmuir
$8,589
Yreka
$41,738
Subtotal Members
$252,623
Biggs
$4,824
Tulelake
$4,425
Subtotal Mini Cities
$23,519
Grand Total
$276,000

21. WC Funding – Administrative Expenses
Multiply seventy percent (70%) of the Admin
Expenses by Member projected payroll divided by
the total projected payroll of all Members, Column M;
plus
A share of the remaining “Administrative Expenses”
(30%) that is equal among all the members. Column L
Total Admin is shown in Column M A L M N
Formula/Allocation
(Total Admin x .3)/ Number of Members
(Total Admin x .7)/ %PP
(L) + (M)
MEMBER ENTITY
30% ADMIN FIXED EXPENSE
70% ADMIN % PAYROLL
Proposed Admin Total FY 17-18
Rate/Amount
$109,794
$256,187
$365,981
Dunsmuir
$6,458
$7,698
$14,157
Yreka
$36,137
$42,595
Subtotal Members
$71,043
$234,003
$305,047
Biggs
$4,681
$11,140
Colfax
$4,421
$10,879
Subtotal Mini Cities
$38,751
$22,183
$60,934
Grand Total

22. WC Funding – Total & Comparison
Banking, Shared, Excess, and
Admin Expenses are totaled in Column (Q)
Comparison to FY funding
In Columns (R) and (S) A Q R S T
Formula/Allocation
(H) + (K) + (N)
MEMBER ENTITY
Proposed FY TOTAL DEPOSIT
Prior Year FY DEPOSIT
$ Change Overall
% Change Overall
Rate/Amount
75% CL
70% CL
Dunsmuir
$60,425
$62,262
($1,837)
3.2%
Subtotal Members
$1,259,294
$1,292,610
($33,316)
36.8%
Biggs
$38,207
$37,503
$704
1.9%
Tulelake
$35,578
$34,613
$966
2.8%
Subtotal Mini Cities
$189,857
$462,801
($272,944)
-59.0%
Grand Total
$1,912,268
$1,722,095
$190,172
11.0%

23. Comments & Questions?

24. Liability Funding – Adjusted Shared Layer
Shared Layer x Ex Mod = Unadjusted Shared Layer. Column F
Total unadjusted funding does not balance with
original funding total ($427,475 v. $448,415).
To balance the amount the Unadjusted Shared Layer
is divided by a Weighted Ex Mod
Weighted Ex Mod = unadjusted shared layer/shared layer =
Adjusted Shared Layer = SL x Ex Mod/Total Weighted Ex Mod. Column G
Adjusted Shared Layer balances with the original funding amount per actuary A F G
Formula/Allocation
Shared Layer x Ex Mod
SL x EX Mod/ (Tot. Weighted Ex Mod)
MEMBER ENTITY
UNADJUSTED SHARED LAYER
ADJUSTED SHARED LAYER*
Rate/Amount
Calculation
Biggs
$7,989
$8,380
Colfax
$9,570
$10,039
Dunsmuir
$16,037
$16,823
Grand Total
$427,475
$448,415

25. WC Funding – Adjusted Shared Layer
Shared Layer x Ex Mod = Unadjusted Shared Layer. Column F
Total unadjusted funding does not balance with
original funding total ($723,468 v. $719,284).
To balance the amount the Unadjusted Shared Layer
is divided by a Weighted Ex Mod
Weighted Ex Mod = unadjusted shared layer/shared layer =
Adjusted Shared Layer = SL x Ex Mod/Total Weighted Ex Mod. Column G
Adjusted Shared Layer balances with the original funding amount per actuary A F G
Formula/Allocation
Shared Layer x Ex Mod
SL x EX Mod/ Total Weighted Ex Mod
MEMBER ENTITY
UNADJUSTED SHARED LAYER
ADJUSTED SHARED LAYER*
Rate/Amount
Calculation
Dunsmuir
$17,798
$17,695
Subtotal Members
$513,053
$510,086
Biggs
$16,847
$16,749
Subtotal Mini Cities
$210,415
$209,198
Grand Total
$723,468
$719,284