As of June 30, 2025, the City had 10 active subscriptions. The subscriptions have payments that range from $8,350 to $59,577 and interest rates that range from 2.0240% to 3.7640%. As of June 30, 2025 the total combined value of the subscription liability is $212,731 and the total combined value of the short-term subscription liability is $147,505. The combined value of the right to use asset, as of June 30, 2025 was $779,482 with accumulated amortization of $371,722. The subscriptions had no variable payments and no other payments, not included in the subscription liability, within the fiscal year.
The principal and interest payments that are expected to maturity are as follows:
Governmental Activities
June 30 Principal Interest Total Payments
2026 $ 147,505 $ 6,149 $ 153,654
2027 65,226 1,623 66,849
Totals $ 212,731 $ 7,772 $ 220,503
The City of Palm Desert is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/.