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LTC 506-2025 Positive Trends in Liability and Workers' Compensation Case Reserves and Estimated Outstanding LossesMIAMI BEACH OFFICE OF THE CITY ATTORNEY L TC No. _______ _ LETTER TO COMMISSION TO: Mayor Steven Meiner and Members of the City Commission FROM: Ricardo J. Dopico, City Attorney,.___�� Eric Carpenter, City Manager DATE: SUBJECT: December 2, 2025 Positive Trends in Liability and Workers' Compensation Case Reserves and Estimated Outstanding Losses This Letter to Commission is to advise you of significant, positive trends in the City's self-insured liability and workers' compensation case reserves as of September 30, 2025. These results reflect the combined efforts of the City Attorney's Office litigation team and the City's Risk Management and Human Resources staff in reducing the City's exposure on existing claims. Between September 30, 2024, and September 30, 2025, total case reserves across all major self­ insured lines decreased from $22,241,300 to $17,224,461, a reduction of $5,016,839, or 22.6%. The most notable improvements were in two historically high-exposure areas: -Law enforcement liability case reserves decreased by $1,974,500 (-67.6%); and -General liability case reserves decreased by $2,753,430 (-56.0%). These reductions reflect successful defense results, dismissals, summary judgments, favorable settlements, as well as disciplined reserve setting and claim closure by the City's Risk Management and Litigation teams. Case reserves for workers' compensation also improved, decreasing by $1,208,287 (-9.1 %) over the same period. At the same time, the City's total estimated outstanding losses (the combined measure of expected future claim costs on all past incidents) declined from $56,126,028 on September 30, 2024, to $51,486,344 on September 30, 2025-a reduction of $4,639,684, or 8.3%. Within that total, estimated outstanding losses for law enforcement liability decreased by 31.7%, and general liability by 38.0%, confirming the substantial improvement in the City's overall liability profile. These favorable results are the product of close coordination among the City Attorney's Office and the City's Risk Management and Human Resources professionals. On the legal side, the litigation team is led by Chief Deputy City Attorney Robert Rosenwald, Deputy City Attorney Henry J.Hunnefeld, First Assistant City Attorney Freddi Mack, and Assistant City Attorney II Benjamin Braun. On the Risk Management and Human Resources side, Senior Risk Officer Marc Chevalier, Assistant Risk Officer Robert Aragon, and Senior Human Resource Specialist Jennifer Sanchez have played central roles in improving claim outcomes and tightening reserve practices. Should you have any questions or require further clarification, please do not hesitate to contact us. RJD/EC/HJH/ag 506-2025