Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Actuarial topic
No spam. Unsubscribe anytime.
Council accepts actuarial report estimating $2.3M in reserves and $7.5M loss forecast
Summary
Select Actuarial Services presented the city's annual reserve analysis and loss forecast covering claims through June 30, 2025. Council accepted the report and staff will use the figures for budgeting.
Betsy Southworth of Select Actuarial Services presented the City of Moore's annual actuarial study at the Oct. 6 council meeting and summarized outstanding liabilities and a budget forecast for claims costs.
The report estimated total outstanding insurance reserves of about $2,300,000 for liabilities arising through June 30, 2025, and recommended a loss forecast (budget accrual) for the 2025-26 fiscal year of roughly $7,500,000. Southworth told the council health benefits make up the largest portion of the forecast (approximately $6.9 million for the 2025-26 year) while workers' compensation accounted for about $1.25 million of the outstanding reserves.
Southworth explained the study serves two main purposes: a reserve analysis (a backward-looking estimate of outstanding liabilities to carry on the city's balance sheet) and a loss forecast for budgeting (the expected cost of claims occurring in the upcoming fiscal year). She described methodology including historical claim data back to 1999 and adjustments for expected claim inflation; the firm projects modest medical-cost inflation of about 3% into the 2026-27 fiscal year.
On workers'compensation, Southworth noted a recent large city claim from May 2025 contributed to a small increase in the workers'compensation reserve compared with the prior year. Liability (auto and general) reserves are much smaller by comparison and are relatively flat year to year.
Council moved to accept the report; the motion carried on a unanimous roll-call vote. Finance and risk-management staff will use the actuarial figures in the city's FY budgeting and reserves planning.
"We've been able to collect a lot of data over those years, and it all helps us do a better job in what we're trying to accomplish," Southworth said during her presentation, describing the firm's 20-year relationship with the city.
Council did not alter the report's numbers at the meeting; staff flagged follow-up tasks to incorporate the projections into upcoming budget work.
