1. SCORE Liability Rating Plan What is it? How does it work? Presented By Jackie Parker

2. Today’s Outline  Members in Liability  What is the Rating Plan?  SCORE’s Liability Program  CJPRMA Layer  Shared Risk Layer  Banking Layer  SCORE Administrative Costs  Breakdown of SCORE Liability Layers

3. Who’s in the Liability Program?

4. What is the Rating Plan? The Rating Plan is a method for equitably allocating premium amongst SCORE member cities for:   Bodily Injury   Property Damage   Public Officials Errors & Omissions The Rating Plan uses risk sharing concepts and techniques. The Rating Plan allocates all program costs to members.

5. A Look at the SCORE Liability Program California Joint Powers Risk Management Authority (CJPRMA) $500,000 to $40,000,000 per occurrence SCORE Shared Risk Layer $25,000 to $500,000 per occurrence SCORE Banking Layer $25,000 per occurrence

6. Total “Voting” Members = 22 Total City Members = 93 05/06 Member Contrib. = $16,397,844 CJPRMA member since 1987 22% of Total City Members 05/06 SCORE Contrib. = $211,712 (1.3% of CJPRMA Total Contributions) CJPRMA $500,000 to $40,000,000 per occurrence SCORE

7. Fort Jones$3,511Loomis$18,208 Dorris$3,950Ione$20,616 Loyalton$4,672Live Oak$22,833 Montague$6,864Williams$26,863 Isleton$9,643Weed$41,089 Biggs$9,814Mt. Shasta$45,055 Etna$10,252Crescent City$66,717 Colfax$12,785Yreka$82,064 Portola$13,908Susanville$90,472 Rio Dell$14,202Shasta Lake$99,814 Dunsmuir$14,939TOTAL:$618,271 SCORE Shared Risk Layer $25,000 to $500,000 per occurrence Member Contributions (FY 05/06)

8. SCORE Shared Risk Layer $25,000 to $500,000 per occurrence Actuarial Funding Rates FY 2005-2006 Recommended Range Expected70% CL75% CL80% CL85% CL90% CL $1.99$2.42$2.65$2.95$3.31$3.80

9. SCORE Shared Risk Layer $25,000 to $500,000 per occurrence Deposit Premium = Actuarial Rate @ 80%* Confidence Level x Member Estimated Payroll Adjusted by their Experience Modification Factor Experience Modification Factor = Relative Loss Rate x Credibility Factor Relative Loss Rate = Individual Member Loss Rate ÷ by Total Loss Rate for all members * Minimum Governing Documents Require. Recommendation of 85% Confidence Level for 2007/2008 Budget.

10. SCORE Shared Risk Layer $25,000 to $500,000 per occurrence Credibility Factor = Individual Members Payroll divided by (Total Members Payroll + Constant) The Credibility Factor is applied to members payroll to create a more equitable distribution of payrolls. Loss Rate = Individual Member Losses Past Five Years (2001-2006) ÷ Individual Member Payroll Past Five Years (2001-2006)

11. Isleton$6,736Fort Jones$14,828 Biggs$7,422Ione$15,062 Etna$8,003Live Oak$16,193 Colfax$8,788Williams$17,569 Montague$9,590Mt. Shasta$33,613 Rio Dell$9,606Weed$33,947 Portola$10,155Crescent City$42,431 Dunsmuir$12,032Susanville$58,553 Loyalton$12,995Yreka$61,131 Loomis$13,320Shasta Lake$84,671 Dorris$14,245TOTAL:$490,889 SCORE Banking Layer $0 to $25,000 per occurrence Member Contributions (FY 05/06)

12. SCORE Banking Layer $0 to $25,000 per occurrence Member Contributions (FY 05/06) Actuarial Funding Rates FY 2005-2006 Recommended Range Expected70% CL75% CL80% CL85% CL90% CL $1.65$1.98$2.14$2.32$2.56$2.88

13. Deposit Premium = Actuarial Rate @ 80%* Confidence Level x Member Estimated Payroll Adjusted by their Experience Modification   Minimum deposit premium of $20,000 3 member cities currently pay the minimum   Maximum deposit premium of $250,000. 2 member cities are close to paying the maximum Experience Modification = Relative Loss Rate x Credibility Factor SCORE Banking Layer (Same as Shared Layer) $0 to $25,000 per occurrence * Minimum Governing Documents Require. Recommendation of 85% Confidence Level for 2007/2008 Budget.

14. Credibility Factor =Individual Members Payroll divided by (Total Members Payroll + Constant) The Credibility Factor is applied to members payroll to create a more equitable distribution of payrolls. Loss Rate = Individual Member Losses Past Five Years (2001-2006) ÷ Individual Member Payroll Past Five Years (2001-2006) Relative Loss Rate = Individual Member Loss Rate ÷ by Total Loss Rate for all members SCORE Banking Layer (Same as Shared Layer) $0 to $25,000 per occurrence

15. Member Entity DE6 Payroll InflatedPercentage of Total Expense Allocated By Payroll Cost Allocated Equally Liability Admin Costs Biggs$284,1201.35%$1,619$5,691$7,310 Colfax$460,9642.20%$2,627$5,691$8,318 Crescent City$2,708,36412.91%$15,433$5,691$21,124 Dorris$127,5510.61%$727$5,691$6,418 Dunsmuir$390,9961.86%$2,228$5,691$7,919 Etna$276,8021.32%$1,577$5,691$7,268 Fort Jones$118,8320.57%$677$5,691$6,368 Ione$691,8313.30%$3,942$5,691$9,633 Isleton$327,4381.56%$1,866$5,691$7,557 Live Oak$813,9383.88%$4,638$5,691$10,329 Loomis$604,3962.88%$3,444$5,691$9,135 Loyalton$159,3770.76%$908$5,691$6,599 Montague$232,5891.11%$1,325$5,691$7,016 Mt. Shasta$1,502,8277.17%$8,564$5,691$14,255 Portola$452,9512.16%$2,581$5,691$8,272 Rio Dell$530,5982.53%$3,024$5,691$8,715 Shasta Lake$2,486,18011.85%$14,167$5,691$19,858 Susanville$3,848,29218.35%$21,929$5,691$27,620 Weed$1,077,2605.14%$6,139$5,691$11,830 Williams$1,095,5995.22%$6,243$5,691$11,934 Yreka$2,781,60913.26%$15,851$5,691$21,542 Total:$20,972,515100.00%$119,509$119,511$239,020

16. Breakdown of SCORE Liability Layers CJPRMA $40 Million Limit 21 Participating Cities $211,712 Premium (05/06 FY) >2% of Program Costs SCORE Shared Layer $150,000 Limit $913, 328 Premium (05/06 FY) >3% of Program Costs SCORE Banking Layer $25,000 Limit $649, 401 Premium (05/06 FY) >17% of Program Costs