TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLPlace2 Leo Montalvo McAllen Place 5 Carol Loughlin...

2018

* 2019

TMLIRP

ANNUAL

REPORT

2018-19 ANNUAL REPORT

TEXAS MUNICIPAL LEAGUEINTERGOVERNMENTAL RISK POOL

Houston Office14340 Torrey Chase Blvd, #320Houston, Texas 77014281-893-7110Toll Free: 800-762-1818

Corpus Christi Office400 Mann St. # 708Corpus Christi, TX 78401361-814-1722Toll Free: 800-327-2780

Harlingen Office1901 North Ed Carey, #201Harlingen, Texas 78550956-412-1919Toll Free: 800-327-2857

Dallas Area Office18601 LBJ Freeway, #210Mesquite, Texas 75150972-613-1754Toll Free: 877-478-5031

Lubbock Office4601 50th Street, #205Lubbock, Texas 79414806-793-0807Toll Free: 800-709-2667

Finance & Accounting: 512-491-2316Executive: 512-491-3324Member Services: 512-491-2311Legal: 512-491-3326Liability & Property Claims: [email protected]

Loss Prevention: 512-491-2388Information Technology: 512-491-3319Human Resources: 512-491-3330Underwriting: 512-491-2404Workers’ Comp Claims: [email protected]

AustinHeadquarters1821 Rutherford LaneFirst FloorAustin, Texas 78754512-491-2300Toll Free: 800-537-6655

San Antonio Office4203 Woodcock Drive, #255San Antonio, Texas 78228210-732-8899Toll Free: 800-327-2660

Austin Fax Numbers / E-Mail











TABLE OF CONTENTS

1………………………………….WHO WE SERVE

2………………….….FINANCIAL HIGHLIGHTS

3…………………….……BOARD OF TRUSTEES

4……………………LETTER FROM THE CHAIR

5……………...AUDITOR’S OPINION LETTER

7………..MANAGEMENT’S DISCUSSION & ANALYSIS

23…………….……GASB 31 EXPLANATIONS

27………………………………….REINSURANCE

28…………….……FINANCIAL STATEMENTS

70………………..ORGANIZATIONAL CHART

71………………….……..POOL MEMBERSHIP

WHO WE SERVE

The Pool is an intergovernmental, risk-sharing partnership, formed in 1974 by the members of the Texas Municipal League for the purpose of offering workers’ compensation, liability, and property protection to Texas political subdivisions including:

Cities • Housing Authorities • Municipal Utility Districts • Water & Irrigation Districts • Tax Appraisal Districts • Fire Districts/Emergency Service Districts • Hospital Districts • Transit Authorities • Councils of Government • 911 Districts • Drainage Districts • Flood Control Districts • Navigation Districts & Authorities • Public Utility Boards • River Authorities • Airports • Downtown Management & Improvement Districts • Conservation & Reclamations Districts • MHMR Districts • Toll Road Authorities • Library Districts

GOVERNANCEThe Pool’s mission, objectives, and overall policy governance is set by the Board of Trustees, who are elected and appointed officials that represent the membership.

CORE VALUESThe Pool adheres to the following four core values to fulfill its mission:

• Fiscal Responsibility• Integrity• Operational Excellence• Public Service

Cities, 77.2%

ESD & 911 Districts, 1.1%

Appraisal Districts, 1.0%

Housing Authorities, 5.7%

Water Districts & MUDs, 6.7%

Councils of Government, 1.1% Hospital & Health,

1.2%

Transit Authorities, 2.3%Other, 3.7%

Contributions $202,106,423 at September 30, 2019

Total Members - 2,814

1

MISSION STATEMENT

The Mission of the Texas Municipal League Intergovernmental Risk Pool is to offer and provide Texas municipalities and other units of local government with a stable and economic source of risk financing and loss prevention services.

OBJECTIVES• Educate members about avoiding and reducing risks• Control losses with effective legal defense and claims handling• Anticipate emerging risks• Be aware of and anticipate emerging state and national trends• Provide appropriate coverages that meet the needs of the Pool’s members• Serve as an expert source of information on risk management for cities, other units of local government, and the

Texas Municipal League• Develop, train, and retain highly qualified staff

9/30/19 9/30/18 Amount Percent

Revenues

Total Contributions (gross of reinsurance expense) 202,106,423$ 190,092,657$ 12,013,766$ 6.3%

Investment Income* 22,014,196 20,907,902 1,106,294 5.3%

Other Income 316,514 368,265 (51,751) -14.1%

Total Revenues 224,437,133$ 211,368,824$ 13,068,309$ 6.2%

Expenses

Total Claim Losses 154,233,289$ 145,068,267$ 9,165,022$ 6.3%

Reinsurance Expense 11,583,666 10,458,978 1,124,688 10.8%

Pension and OPEB Expenses 5,549,986 3,192,866 2,357,120 73.8%

Administrative Expenses & Contract Service Fees 40,098,980 39,953,715 145,265 0.4%

Total Expenses 211,465,921$ 198,673,826$ 12,792,095$ 6.4%

Revenues Over (Under) Expenses 12,971,212$ 12,694,998$ 276,214$ 2.2%

Total Assets and Deferred Outflows** 732,414,087$ 696,985,851$ 35,428,236$ 5.1%

Total Liabilities (362,770,720) (340,313,698) (22,457,022) 6.6%

Total Net Position** 369,643,367$ 356,672,153$ 12,971,214$ 3.6%

restricted net position of $18,509,944 and $13,820,225 for 2018-19 and 2017-18, respectively.

Financial HighlightsYear Ended Change

*Excludes Changes in Unrealized Gains/Losses of $37,734,381 and ($25,765,069) for 2018-19 and 2017-18, respectively.**Excludes Cumulative Unrealized Gains/(Losses) of $18,989,613 and ($18,744,767) for 2018-19 and 2017-18, respectively. Includes

2

BOARD OF TRUSTEES

J.W. (Buzz) Fullen, Chair

Henderson

Place 2

Leo Montalvo McAllen

Place 5

Carol Loughlin

Dallas

Place 10

Bennett Sandlin

Austin

TML Representative

Randy Criswell, Vice Chair

Mineral Wells

Place 11

Mary Gauer

Central Texas COG

Place 6

Bert Lumbreras

San Marcos

Place 12

Henry Wilson Hurst

TML Representative

Robert T. Herrera

Cibolo

Place 1

Mary M. Dennis

Live Oak

Place 7

Byron Black Johnson

County CAD

Place 13

Michael Smith

Jacksboro

TML Health Benefits

Representative

Jeffrey Snyder

Plainview

Place 3

Larry Melton

Odessa HA

Place 8

David Harris Balcones Heights

Place 14

Rob Hauck

Tomball

Place 4

Andres Garza, Jr.

Wharton

Place 9

Rickey Childers

Lancaster

Place 15

3

LETTER FROM THE CHAIRMembers,

2018-19 was an outstanding year for the Pool and one filled with exceptional progress. Several positive events occurred this year that improved the Pool’s operations, created new investment opportunities, and provided significant cost savings. Claims activity was higher than average throughout the year and each of the main operating funds experienced higher losses, but as a result of strong contributions and investment returns, the Pool strengthened its financial position by increasing its equity by $13.0 million.

Nine years ago, the Pool began the process of replacing all its major business applications. In October 2018, the Finance & Human Resources/Payroll systems went live. In April 2019, the Policy Center (underwriting) and Billing Center (member billing process) applications went live, and in June 2019, a new Medical Bill Review system became operational. In addition to these new systems, the Pool introduced an updated, member-friendly website. Through enhanced data analysis & reporting and increased efficiencies, the Pool and its members are already realizing the benefits and value from these investments.

The Pool worked closely with the legislature, the Texas Association of Firefighters, and emergency medical technicians to develop legislation that would clearly define the types of cancers presumed to have resulted from these first responders’ scope of employment. As part of the enacted legislation, governmental self-insurance pools were given the authority to invest a specific portion of its assets in an expanded range of investments that are beyond those authorized under the Texas Public Funds Investment Act. Going forward, this action will provide the Pool a means to generate a significant amount of additional investment income over the life of its death and lifetime income benefit claims.

Some of the other major accomplishments this year include:

Member Protection - The Pool strengthened its coverages by ending property coverage on a mono-line basis. This action ensures that more than one line of coverage is required when property coverage is placed, thus greatly reducing the ability of competitors to cherry-pick coverages for potential clients.

Member Savings - By entering into an Interlocal Cooperation Agreement with the Political Subdivision Workers’ Compensation Alliance (Alliance) for the Pool to handle the Alliance’s management and operations, the Alliance was able to save its participants an estimated $440,000 per year.

Property Valuation Reviews - Expanding the Property Valuation Review program for utility systems and other large properties identified millions of dollars of under or non-reported properties that will generate additional revenue as they are added to the Pool’s covered assets, and ensure that members have adequate coverage for their properties.

Strengthening Reinsurance Structure - The Pool added a seventh layer, $50M X $250M, to its property reinsurance program. This action had a positive impact on the amount of capital required to meet the 1-in-250 funding target minimum for the Pool on an overall basis.

In the Workers’ Compensation program, the Pool once again received the “High Performer” designation from the Texas Department of Workers’ Compensation. This designation means that the Pool consistently initiates indemnity benefits and pays medical bills within the timeframes prescribed by statute. The Alliance again received the highest or second highest ratings among every category as measured by the Texas Department of Insurance. These scores indicate that the Alliance continues to provide the highest quality of health care to the Pool’s members’ employees and that these initiatives to aid injured employees in their recovery are successful.

Based on the Pool’s financial and operational results, the Pool continues to meet its mission of providing its members with a long-term, stable and economic source of risk financing and loss prevention services.

It is with pride that the Board of Trustees and staff present the 2018-19 annual financial report.

John (Buzz) Fullen

Chair, Board of Trustees Texas Municipal League Intergovernmental Risk Pool

4

Report of Independent Auditors

Board of Trustees Texas Municipal League Intergovernmental Risk Pool

We have audited the accompanying financial statements of each major fund of the Texas Municipal League Intergovernmental Risk Pool (the Pool), which comprise the statements of net position as of September 30, 2019 and 2018 and the related statements of operations and changes in net position and cash flows for the years then ended and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Pool’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Pool’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial positions of each major fund of the Pool as of September 30, 2019 and 2018, and the respective results of operations and cash flows thereof for the years then ended in conformity with accounting principles generally accepted in the United States of America.

5

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion & Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming an opinion on the financial statements of the Pool’s major funds. The ten-year claims development information, schedule of the changes in net pension liability and related ratios and the schedule of employer pension contributions are presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. The required supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

December 13, 2019

6

MANAGEMENT'S DISCUSSION AND ANALYSIS

7

Management’s Discussion and Analysis

The Texas Municipal League Intergovernmental Risk Pool (Pool) provides this narrative overview

and analysis of the financial activities of the Pool for the fiscal year ended September 30, 2019.

Information presented herein should be considered in conjunction with additional information

provided in the Financial Statements & Required Supplementary Information section, which is

found on page 28 of this report.

PURPOSE AND CORE STRATEGY

The Pool’s purpose is to provide its members with a stable and economic source of financing for

their workers’ compensation, liability, and property risks, and provide meaningful loss prevention

services. To accomplish these goals, the Pool builds enduring partnerships with municipalities

and other units of local government throughout the state. The Pool’s core strategy includes

providing excellent public service based on integrity, assisting members with implementing

programs that avoid or reduce risk, providing exceptional professional claims handling and legal

services once losses occur, and maintaining financial strength through strong underwriting,

appropriate reserving, a stable investment program, and the application of sound financial

practices.

FINANCIAL STATEMENT PRESENTATION

This report presents financial information in two ways. The audited financial statements

presented in this annual report comply with the Governmental Accounting Standards Board

(GASB) Statement 31, which requires the Pool to report unrealized investment gains and losses

as part of the Pool’s financial results. The Pool makes all of its management decisions without

considering unrealized gains or losses. Unrealized gains and losses are “paper” gains and losses

caused by fluctuations in the market price of securities. Since the Pool generally has the intent

and ability to hold investments until maturity, unrealized gains and losses do not impact the

financial position of the Pool. To provide a clear understanding of the Pool’s financial operational

position, this report also includes a section titled GASB 31 Explanations. This section provides a

comparison of the Financial Statements with and without GASB 31. In the analysis below,

italicized sentences indicate amounts that are exclusive of unrealized gains or losses, otherwise,

unless so indicated, amounts recorded include unrealized gains and losses.

FINANCIAL HIGHLIGHTS AS OF SEPTEMBER 30, 2019

• The Pool’s net position was $388.6 million compared to $337.9 million at September 30, 2018,

an increase of $50.7 million. At September 30, 2018, net position decreased $13.7 million from

the September 30, 2017 level of $351.6 million. The reduction in net position during 2017-18

was primarily a result of development of Hurricane Harvey and unrealized losses resulting from

a rising interest rate environment. The improvement in net position during 2018-19 was

primarily due to unrealized gains resulting from a declining interest rate environment;

however, the period did incur higher than normal property losses in 2018-19 and an increase

8

in severe workers’ compensation medical claims. Other factors affecting net position included

clarity by the Texas Legislature on the cancer presumption workers’ compensation statutes,

positive changes in the Pool’s property coverages that limit the Pool’s exposure to flood, and

the inclusion of property values that were previously not reported or under reported.

• This year, gross earned contributions increased by $12.0 million to $202.1 million. Gross earned

contributions were $190.1 million and $179.9 million in 2018 and 2017, respectively. During

2019, the Pool experienced unrealized investment gains of $37.7 million, which caused total

revenues to increase (compared to unrealized losses of $25.8 million and $19.2 in 2018 and

2017, respectively). Without the effects of unrealized investment gains/losses, the positive

trend of total revenues that is primarily driven by the increase in gross earned contributions is

more apparent. Total revenues without unrealized gains/losses for 2019, 2018 and 2017 were

$224.4 million, $211.4 million, and $200.6 million, respectively.

Investment interest income increased to $25.4 million compared to $24.3 million and $24.1

million in 2018 and 2017, respectively. Interest rates declined during 2019 causing the fair

value of the Pool’s investments to increase. The investment income (change in fair value,

including amortization and net realized gains) was $34.3 million compared to ($29.1) million

and ($22.8) million in 2018 and 2017, respectively. Combining interest income and the change

in fair value, total investment income was $59.7 million in 2019, compared to ($4.9) million and

$1.3 million in 2018 and 2017, respectively.

• The Pool maintained a strong investment base even after paying claims for Hurricane Harvey,

the Pool’s largest loss ever. Cash, investments and accrued investment income was $712.3

million, $645.5 million, and $686.9 million in 2019, 2018 and 2017, respectively.

• Total net incurred losses and loss adjustment expenses, excluding independent adjuster fees,

were $152.7 million, an increase of $7.6 million or 5.3% over the previous year (net incurred

losses were $145.1 million in 2018 and $168.8 million in 2017). Losses in the Workers’

Compensation Fund increased by $3.7 million. The Pool maintained the reserve redundancy of

$8.0 million it set in 2018 due to the significant flat long development tail and the risk of open

medical claims in older accident years.

Losses in the Liability Fund were $2.0 million higher than the previous year and, as a result, the

Pool released $1.1 million in reserve redundancy to offset the increase.

Losses, excluding independent adjuster fees, in the Property Fund were $19.2 million higher

than the previous year. Losses in the Reinsurance Fund decreased by $17.8 million, from $15.5

million in 2018 to ($2.3) million in 2019. Total property losses (net of outside reinsurance and

excluding independent adjuster fees) in 2019 were $54.6 million compared to $53.5 million in

2018, an increase of $1.1 million or 2.0% from the previous year. Losses over the past three

years have been impacted by more frequent and severe weather-related storm occurrences

and a large liability loss. The pure loss ratio (total losses/net contributions) for the current year

for all funds was 80.2% compared to 80.8% and 99.3% in the previous two years.

9

OVERVIEW OF THE FINANCIAL STATEMENTS

The discussion and analysis provided herein is to serve as an introduction to the Pool’s financial

statements. The Pool’s financial statements consist of three components: 1) basic financial

statements, 2) notes to financial statements, and 3) required supplementary information. The

supplementary information is intended to furnish additional detail to support the basic financial

statements themselves. The combined financial statements are designed to provide readers with

a broad overview of the Pool’s finances.

Fund Accounting and Financial Statements. The Pool has six operating funds that are accounted

for as self-sustaining business-like activities or enterprise funds. The Pool's six funds are the

Workers' Compensation, Liability, Property, Coastal Storm, Reinsurance, and Stability Funds that

by policy are classified as major funds. Each fund is presented separately with comparative data

from the previous year.

A fund is a grouping of related accounts that is used to maintain control over resources that have

been segregated for specific activities or objectives. The Pool, like other state and local

governments, uses fund accounting to ensure and demonstrate compliance with finance-related

legal requirements.

The Workers ' Compensation, Liability, Property and Coastal Storm Funds are the only funds that

receive contributions from participating members. The Pool's other two funds primarily serve

special operational functions that include excess loss coverage, large loss frequency and high

severity coverage through the Reinsurance Fund, and a reserve for unallocated loss adjustment

expenses and pension liability items through the Stability Fund. All funds incur a monthly

allocation of administrative expenses.

The Pool adopts an annual appropriated budget for each fund that is aggregated to comprise the

combined fund budget. A budgetary comparison statement has been provided for the combined

fund to demonstrate compliance with this budget.

The Statement of Net Position presents financial information on all of the Pool’s assets, liabilities,

and deferred inflows/outflows of pension resources, with the difference reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of the financial

position of the Pool.

The Statement of Operations and Changes in Net Position shows how the Pool's Net Position has

changed during the two most recent fiscal years. All changes in Net Position are reported as soon

as the underlying event giving rise to the change occurs, regardless of the timing of related cash

flows. Thus, revenues and expenses are reported for some items that will result in cash flows in

future fiscal periods (for example, accrued investment income and contract service fees payable).

All interrelated balances and transactions have been eliminated and are presented in a separate

column.

10

The Statement of Cash Flows, utilizing the direct method, shows actual cash received and used

by the Pool during the year and presents a reconciliation of revenues over expenses to net cash

provided by operating activities.

The Pool-wide financial statements can be found on pages 28 of this report.

FINANCIAL ANALYSIS FOR THE POOL

Assets & Deferred Charges and Liabilities. Along with assets and liabilities on the Statement of

Net Position, the Pool reports deferred charges (Deferred Outflows of Pension Resources) in

accordance with GASB 68, Accounting and Financial Reporting for Pensions. Total assets and

deferred outflows were $751.4 million, $678.2 million and $714.1 million in 2019, 2018, and

2017, respectively. The percentage of cash, investments and accrued investment income to total

assets and deferred charges remained relatively consistent at 94.8%, in 2019, 95.2% in 2018, and

96.2% in 2017. Throughout 2019, the types of securities that the Pool invested in was limited by

state law. Those investment instruments, and other management reporting and training

requirements are specifically addressed in the State of Texas Public Funds Investment Act (see

Note 4) and are included in the Pool’s Investment Policy.

On June 10, 2019 the Governor of Texas signed into law Senate Bill 2551, which expanded the

authority for investing assets related to death and lifetime income benefits claims. This Act allows

governmental self-insurance pools to establish an account for death and lifetime income benefit

losses, and utilizing the “prudent person” rule, invest in an expanded range of asset class

investments that are beyond those investment instruments authorized under the Texas Public

Funds Investment Act. Though this expanded investment authority was authorized by the state

in June 2019, the Board will consider changes to the investment policy, allocation of asset classes,

and this program’s performance guidelines and benchmark at the January 2020 Board meeting.

Due to unfavorable investment results at the Texas Municipal Retirement System (TMRS), the

Pool reported a Net Pension Liability of $8.8 million in 2019, compared to a Net Pension Asset of

$5.0 million in 2018 and a Net Pension Liability of $3.8 million in 2017.

Total liabilities increased to $362.8 million from $340.3 million in 2018 ($362.5 million in 2017).

Total liabilities were higher in 2019 due primarily to increases in loss reserves and the net pension

liability. Loss reserves constitute the majority of the Pool’s liabilities. Reserves for estimated

ultimate net unpaid losses and loss adjustment expenses (loss reserves), were $326.9 million,

$315.3 million, and $319.2 million for 2019, 2018, and 2017, respectively (accounting for 90.1%,

92.7%, and 88.0% of total liabilities, respectively). Other items impacting loss reserves were an

increase in the Unallocated Loss Adjustment Expense (ULAE) Reserve and the normalizing of the

discount rates for certain workers’ compensation reserves.

11

Net Position. Over the past three fiscal years, the growth trend of net position has been impacted by an extraordinary amount of weather‐related losses, including Hurricane Harvey in August of 2017, the uncertainty of the impact of possible legislative or judicial changes to workers’ compensation statutes related to cancer presumption, a change in fair value of investments, and changes in the fair value of the Pool’s assets held for investment by the Texas Municipal Retirement System. At the end of the current fiscal year, the Pool reported a combined net position of $388.6 million compared to $337.9 million and $351.6 million in 2018 and 2017, respectively.

2019 2018 2017 2016 $ Change % Change $ Change % Change $ Change % ChangeASSETS AND DEFERRED OUTFLOWS

Cash, investments and accrued interest $712,277 $645,472 $686,902 $689,242 $66,804 10.3% $(41,430) ‐6.0% (2,340) ‐0.3%Capital assets 13,445 11,158 7,162 5,814 $2,287 20.5% $3,996 55.8% 1,348 23.2%

Other assets 15,058 16,842 11,076 9,211 $(1,783) ‐10.6% $5,766 52.1% 1,865 20.2%

Net pension asset 0 5,006 ‐ ‐ $(5,006) ‐100.0% $5,006 ‐ ‐ ‐Deferred outflows of pension resources 10,624 (236) 8,948 10,266 $10,861 ‐4594.1% $(9,184) ‐102.6% (1,319) ‐12.8%

TOTAL ASSETS AND DEFERRED OUTFLOWS 751,404 678,241 714,088 714,533 $73,163 10.8% $(35,847) ‐5.0% (446) ‐0.1%

LIABILITIES

Estimated ultimate unpaid losses & loss adjustment expenses (net) 326,949 315,256 319,210 284,628 $11,693 3.7% (3,954) ‐1.2% 34,582 12.1%

Payables 1,546 1,600 4,331 13,618 $(54) ‐3.4% (2,731) ‐63.0% (9,287) ‐68.2%Other liabilities 25,499 23,458 35,232 20,836 $2,041 8.7% (11,774) ‐33.4% 14,396 69.1%

Net pension liability 8,777 0 3,762 2,587 $8,777 ‐ (3,762) ‐100.0% 1,176 45.5%

TOTAL LIABILITIES 362,771 340,314 362,535 321,668 $22,457 6.6% (22,221) ‐6.1% 40,867 12.7%

NET POSITION

Invested in capital assets 13,445 11,158 7,162 5,814 $2,287 20.5% 3,996 55.8% 1,348 23.2%

Restricted 18,510 13,820 13,648 12,380 $4,690 33.9% 172 1.3% 1,268 10.2%

Unrestricted 356,678 312,949 330,743 374,672 $43,729 14.0% (17,794) ‐5.4% (43,929) ‐11.7%TOTAL NET POSITION $388,633 $337,927 $351,553 $392,865 $50,706 15.0% (13,625) ‐3.9% $(41,312) ‐10.5%

2019 2018 2017 2016 $ Change % Change $ Change % Change $ Change % ChangeREVENUES

Earned contributions $202,106 $190,093 $179,896 $169,338 $12,014 6.3% $10,197 5.7% $10,558 6.2%

Reinsurance expense (11,584) (10,459) (9,944) (6,741) (1,125) 10.8% (515) 5.2% (3,203) 47.5%

Investment income (w/unrealized gains/(losses)) 59,749 (4,857) 1,315 27,860 64,606 ‐1330.1% (6,172) ‐469.4% (26,546) ‐95.3%Other revenues 317 368 182 52 (52) ‐14.1% 186 102.1% 130 249.1%

TOTAL REVENUES 250,588 175,145 171,449 190,510 75,443 43.1% 3,695 2.2% (19,061) ‐10.0%

EXPENSES

Net losses and loss adjustment expenses 154,233 145,068 168,755 167,671 9,165 6.3% (23,686) ‐14.0% 1,084 0.6%

G&A, Pension and Contract Service Fees 45,649 43,147 44,007 44,607 2,502 5.8% (861) ‐2.0% (600) ‐1.3%TOTAL EXPENSES 199,882 188,215 212,762 212,278 11,667 6.2% (24,547) ‐11.5% 484 0.2%

Return of net position (equity) ‐ ‐ ‐ 18 ‐ ‐ ‐ ‐ (18) ‐TMRS Contribution ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

CHANGE IN NET POSITION 50,706 (13,070) (41,312) (21,750) 63,776 ‐488.0% 28,242 ‐68.4% (19,562) 89.9%

Prior period adjustment ‐ OPEB ‐ (555) ‐ ‐ 555 ‐100.0% ‐ ‐ ‐ ‐Net Position

BEGINNING OF YEAR 337,927 351,553 392,865 414,615 (13,625) ‐3.9% (41,312) ‐10.5% (21,750) ‐5.2%END OF YEAR $388,633 $337,927 $351,553 $392,865 $50,706 15.0% $(13,625) ‐3.9% $(41,313) ‐10.5%

2019‐2018 2018‐2017 2017‐2016

2019 2018 2017 2016 $ Change % Change $ Change % Change $ Change % Change36,094 (5,485) $28,782 $5,137 $41,579 758.0% $(34,267) ‐119.1% $23,644 460.2%Net cash provided by (used for) operating activities*

Net cash provided by (used for) capital and related activities (3,759) (4,768) (2,088) (323) 1,009 21.2% (2,680) ‐128.3% (1,765) ‐546.4%Net cash provided by (used for) for investing activities (36,083) 2,770 (25,718) (8,433) (38,853) ‐1402.6% 28,488 110.8% (17,285) ‐205.0%Net (decrease) increase in cash and cash equivalents (3,748) (7,483) 976 (3,618) 3,735 49.9% (8,459) ‐866.5% 4,595 127.0%

Cash and cash equivalents (beginning of year) 23,127 30,610 29,634 33,252 (7,483) ‐24.4% 976 3.3% (3,618) ‐10.9%Cash and cash equivalents (end of year) $19,379 $23,127 $30,610 $29,634 ‐3,747 ‐16.2% $(7,483) ‐24.4% $976 3.3%

* Includes investment interest received of $25,286,714, $24,602,015, $23,717,056, and $23,770,635 for the years ended September 30, 2019 2018 2017 and 2016, respectively.

AS OF SEPTEMBER 30, 2019, 2018, 2017, AND 2016 (In Thousands)

2017‐2016

AS OF SEPTEMBER 30, 2019, 2018, 2017, AND 2016 (In Thousands) 2019‐2018 2018‐2017 2017‐2016

SUMMARY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN NET POSITION

SUMMARY COMPARATIVE STATEMENTS OF NET POSITION

AS OF SEPTEMBER 30, 2019, 2018, 2017, AND 2016 (In Thousands) 2019‐2018 2018‐2017

SUMMARY COMPARATIVE STATEMENTS OF CASH FLOWS

12

In 2019, each fund’s equity position increased. On a combined basis in 2019, the Pool gained

$50.7 million of net position. In 2018 and 2017, the Pool used $13.6 million and $41.3 million of

net position, respectively. When excluding unrealized investment gains and losses, the change in

net position was $13.0 million, $12.7 million, and ($22.1) million for 2019, 2018, and 2017,

respectively. For 2019, as a result of a higher level of losses, when unrealized gains are not

considered, both Liability and Property Funds used net position in 2019.

In 2014, the Pool established policies for determining net position adequacy levels on both a

combined and individual fund basis for the Workers’ Compensation, Liability and Property Funds

(see Note 2). In April 2018, with the inclusion of the Pool’s new reinsurance structure, the Board

adopted the 50/50 target equity blended approach as outlined in PricewaterhouseCoopers’ 2017

Target Fund Balance Review. As part of their review, PricewaterhouseCoopers provided a

template so the Pool can annually update its minimum and maximum range. Utilizing this

template and incorporating the new reinsurance structure, in July 2019 the minimum of the

combined fund target equity range was $315.3 million, and the maximum was $471.5 million.

The Pool ended the 2019 fiscal year with $388.6 million, which is above the target equity

minimum on a combined fund basis.

Contributions. The Pool receives contributions from eight different major types of local

government, with cities providing 77.2% of the funds. Contributions are received from members

to provide coverages for various risks. Coverages are rated for each individual member based on

established rates and adjusted by experience modifiers to reflect the actual loss experience of

the member. Member contribution ratings are accomplished by the Pool's Underwriting

Department which assigns each member to one of its staff underwriters. Required contributions

are billed and subsequently collected through the Pool's Finance Department. Members receive

a 2% discount on their contributions when they pay annually.

$60.3$64.7

$67.8 $68.3 $69.5

$47.6 $46.7 $48.0 $49.7 $49.9

$54.8$57.2

$63.7

$71.8

$82.4

$0.8 $0.7 $0.4 $0.2 $0.3

14-15 15-16 16-17 17-18 18-19

GROSS EARNED CONTRIBUTIONS

Workers' Compensation Liability Property Coastal Storm

Millions

13

For the fiscal year ended September 30, 2019, the Pool reported gross earned contributions of

$202.1 million. From the previous year, gross earned contributions increased by $1.1 million in

the Workers' Compensation Fund, increased by $200,000 in the Liability Fund, increased by $10.6

million in the Property Fund, and increased by $47,000 in the Coastal Storm Fund.

The contribution increases in the Property Fund were due primarily to exposure growth, changes

in rates, and new policies that cap exposures based on member declared property values that

led to valuation increases by the members. There was little change for overall workers’

compensation rates with some rate modifications for various class codes and a slight technical

change in the experience modification formula. Payroll exposure increased by $98.5 million to

$5.5 billion. Workers’ Compensation audits added $708,943 as compared to $1.5 million in the

prior year. In the Liability Fund there was a moderate increase in contributions.

Investment income. Investing is a primary, ongoing operation of the Pool, and it is the Pool's

policy to consider investment income as an important component of operating income. Interest

earnings from governmental bonds are the Pool's chief source of investment income. From time

to time, some gains from the sale of investments may be realized due to the Pool or one of its

contracted investment managers adjusting investments to market conditions. The Pool's policy

is to hold investments until maturity. The Pool does not engage in the practice of buying or selling

investments to produce income from realized gains. The Pool complies with the provisions of

GASB 31 by reporting unrealized gains or losses on investments as an income item.

The Pool's position is that unrealized gains or losses are not actual funds received or lost, and

therefore, the Pool considers the unrealized gain or loss separately.

The two components of investment

income are (1) interest income and (2)

change in fair value. The Pool earned

$25.4 million in interest income for

2018-19, compared to $24.3 million

and $24.1 million in 2018 and 2017,

respectively. Investment income

(change in fair value) contains the

unrealized portion of the fair value

change, any realized gains and losses

experienced during the year, and

amortization of discounts/premiums.

Due to fair value volatility, the Pool

makes financial decisions based on

investment income excluding

unrealized gains and losses.

$23.9 $24.0 $24.1 $24.3$25.4

14-15 15-16 16-17 17-18 18-19

INVESTMENT INTERESTINCOME

Millions

14

Investment income, excluding unrealized gains, was $22.0 million, which was $1.0 million more

than the previous year. Net realized gains were $339,592 and unrealized gains were $37.7

million for 2019.

Claim payments and reserves. The

Pool processes claims and pays for

covered losses experienced by its

members in-house. Outside claims

adjusters, attorneys, medical experts,

and other professionals are contracted

on an as needed basis. Between the

time a claim is reported and the time it

is resolved, reserves are established

for the estimated amount that will

have to be paid at some future date to

settle the loss.

In the Workers' Compensation, Liability, Property and Reinsurance Funds, reserves are also

established for claim losses that have occurred but are unknown and not yet reported to the

Pool. These reserves known as IBNR (incurred but not reported) also include future development

of reported or known losses based on historical development patterns. Reserves are also

$258.6$284.6

$319.2 $315.3$326.9

14-15 15-16 16-17 17-18 18-19

COMBINED RESERVES

Millions

Investment Income Reconciliation (millions)2019 2018

Investment Income (Interest Income) 25.4$ 24.3$

Investment Income (Change in Fair Value)

Unrealized investment gains (losses) 37.7 (25.8)

Amortization Expense (3.7) (4.0)

Realized Gains 0.3 0.7

Investment Income (Change in Fair Value) 34.3 (29.1)

Net Investment Income 59.7$ (4.8)$

Investment Income (Interest Income) 25.4$ 24.3$

Amortization Expense (3.7) (4.0)

Realized Gains 0.3 0.7

Investment Income w/o unrealized gains (losses) 22.0$ 21.0$

Unrealized investment gains (losses) 37.7 (25.8)

Net Investment Income 59.7$ (4.8)$

15

maintained in the Coastal Storm Fund for reported losses, in the Workers’ Compensation Fund

(previously reported in the Lifetime Benefits Fund) for the annuity type payments associated with

workers' compensation fatality claims, and in the Stability Fund, which maintains reserves for

unallocated loss adjustment expenses.

The reserve for unallocated loss adjustment expenses are costs that would be included for the

continued administration of claims in the event that the Pool would cease to provide coverage.

Initiating, and the subsequent adjusting of reserves, allows a matching process of current-year

expenses with current-year revenues. The target for the reserve for unallocated loss adjustment

expense was increased during 2018 by $3.6 million to $8.9 million. $1.2 million of the increase

was reported in both 2018 and 2019, and the remaining $1.2 million increase will be recognized

in 2020. In addition, based on the annual actuarial analysis of the ULAE, in October 2019, the

Board approved increasing the ULAE by $500,000. The reserve was $8.2 million for fiscal year

ending 2019, $6.5 million for fiscal year ending 2018 and $5.3 million for 2017.

OPERATING RESULTS – BY FUND

Workers’ Compensation Fund. This fund produced revenues of $90.4 million and had losses and

expenses of $72.9 million, of which, $50.5 million were from losses. Revenues over expenses

increased by $20.7 million over the results in 2017-18. This was primarily as a result of unrealized

gains. Losses were $3.7 million higher than 2017-18, primarily as a result of higher severe medical

losses. This fund began the fiscal year with $91.9 million in net position and ended the year with

$106.7 million. Without cumulative unrealized investment gains, the fund began the year with

$99.1 million and ended the year with $99.4 million.

Liability Fund. The Liability Fund began the 2018-19 fiscal year with $92.4 million in net position,

produced $66.1 million in revenue and had operating losses and expenses of $55.8 million. Claim

losses were $45.2 million. This was an increase of $2.4 million over the amount of losses in the

previous year. This fund ended the fiscal year with $101.6 million in net position. Without

cumulative unrealized investment gains, the fund began the year with a net position of $97.9

million and ended the year with $96.2 million.

Property Fund. The Property Fund produced revenues of $69.7 million and recorded operating

losses and expenses of $67.5 million. Including unrealized investment gains and losses, the fund

gained $2.2 million of net position. Through the Pool's hybrid reinsurance structure, some of the

losses were allocated to the Reinsurance Fund while others were recoverable from the

reinsurers. The fund’s financial results include the amount transferred for reinsurance

reinstatement premiums to the reinsurers and the Reinsurance Fund. The reinstatement

premiums reflects little change for 2018-19 compared to $1.8 million in 2017-18. The fund began

the year with $54.4 million and ended the year with $56.0 million. Without cumulative unrealized

investment gains, the fund began the year with $56.3 million in net position and ended the year

with $53.8 million.

16

Coastal Storm Fund. There were no major storms that affected the Coastal Storm Fund. The fund

produced revenues over expenses of $1.1 million and net position at the end of the 2018-19 fiscal

year was $12.7 million. Without cumulative unrealized investment gains, the fund began the year

with $11.9 million in net position and ended the year with $12.4 million.

Reinsurance Fund. There were no major property loss occurrences that affected the Reinsurance

Fund, and as a result, this fund was able to increase its net position. Revenues were $20.6 million,

and total losses and expenses were ($1.1) million. Whereas the Reinsurance Fund had provided

coverage for any retained losses in excess of $1.25 million per occurrence, which in aggregate

were more than $4.0 million, beginning October 1st the aggregate coverage was eliminated and

the Reinsurance Fund and Property Fund began quota sharing losses over $4.0 million to $10.0

million on a 50/50 % basis. As a result, the Reinsurance Fund experienced favorable loss

development, which produced negative loss results. This fund ended the 2018-19 fiscal year with

$87.0 million in net position. Without cumulative unrealized investment gains, the fund began

the year with $68.4 million in net position and ended the year with $84.0 million.

Total Property Losses. Total property losses (without IBNR and excluding independent adjuster

fees) in 2018-19 were $54.8 million. Total property losses were $101.9 million and $106.6 million

in 2017-18 and 2016-17, respectively. In 2018-19, the Pool incurred 10 property loss occurrences

(property loss or group of property losses that equal or exceed $1 million); eight flood, hail, and

wind occurrences, a tropical storm, and a mobile crane loss. These occurrences spanned the

entire state. The Pool incurred seven occurrences in both 2017-18 and 2016-17. At September

30, 2019, the total loss (paid and reserve) for Hurricane Harvey was $114.1 million. This was the

largest loss the Pool has ever experienced.

Stability Fund. The Stability Fund began the fiscal year with $22.3 million in net position.

Expenses exceeded revenues by $2.1 million. The fund’s negative results were primarily due to

the pension expense and the increase in the ULAE reserve. However, the deficit was offset by

net position transfers from the other funds of $2.7 million for the pension expense and $1.7

million for the ULAE reserve increase. The ending net position balance was $24.7 million. Without

cumulative unrealized investment gains, the fund began the year with $23.1 million and ended

the year with $23.8 million. In 2018, the Pool implemented Governmental Accounting Standards

Board (GASB) Statement No. 75 Accounting and Financial Reporting of Postemployment Benefits

Other Than Pensions (other postemployment benefits or OPEB) (see Note 11). The Pool provides

a defined benefit group-term life insurance through TMRS for active employees and retirees. The

OPEB liability of $668,120 and expense of $53,370 are accounted for in the Stability Fund.

17

Administrative expenses and contract service fees. The Pool incurs administrative expenses and

contract service fees which are budgeted and monitored on a monthly basis for compliance with

budgetary limits. In 2018-19, 70.6% of all administrative expenses were personnel related, such

as salaries, wages, and benefits. The remaining 29.4% includes depreciation, office supplies,

postage, phone service, utilities, and similar costs. Contract service fees include workers'

compensation medical containment fees, and contracted claims management software

maintenance.

In total, the General and Administrative (G&A) expenses and pension expenses were $43.9

million (compared to $39.5 million last year). Administrative expenses (excluding pension and

contract services) were $38.4 million, a moderate increase of 5.4% over the previous year.

Contract service fees were $1.7 million compared to $3.6 million last year. The decrease in

contract services was primarily due to the reclassification of $1.5 million in independent adjuster

fees to claim costs. Pension expense was $5.5 million compared to $3.1 million last year due to

positive investment results at TMRS.

Capital assets. As of September 30, 2019, the Pool’s investment in capital assets was $13.4

million. This is net of accumulated depreciation. The Pool's investment in capital assets includes

land, building, property improvements, computer systems, vehicles, and office furniture and

equipment. The notes to the financial statements contain a more detailed description of the

capital assets and the Pool’s capitalization policy.

$36.9

$41.6

$40.7

$39.5

$43.9

$3.4

$3.0

$3.3

$3.6

$1.7

2014-15

2015-16

2016-17

2017-18

2018-19

ADMINISTRATIVE EXPENSES & CONTRACT SERVICE FEES

G&A and Pension Expense Contract Services

In Millions

18

The Pool had no existing or pending long-term or short-term debt financing activities for the current or preceding fiscal year. The Pool could, if needed, utilize debt financing; however, in its 44-year history, the Pool has not used debt financing to fund any portion of the Pool's initial orongoing operations.

Budget comparison. In the preceding sections, the Pool addressed the operating results of the 2018-19 fiscal year. Below is a chart comparing the budget to actual expenses. The budget and actual results exclude the effects of the change in unrealized gains and losses.

Financial Statements and Notes to the Financial Statements. The financial statements of the Pool have been prepared using the accrual basis of accounting in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental entities. The notes, beginning on page 37, provide additional information that is integral to a full understanding of the financial information presented in the financial statements.

Required supplementary information. In addition to the basic financial statements and accompanying notes, this report presents information regarding the Pool’s ten-year claims development history. Setting member contribution rates to cover the assumed risk of possible future loss occurrences are largely guided by historical claims development. Analysis of trends in claims development indicates whether losses are increasing, decreasing or static. Also included in the required supplementary information section, are the schedules of change in net pension liability, and employer pension contributions. Required Supplementary Information is located on page 62.

Budget ComparisonBudget

2018-19Actual

2018-19 Difference

Earned Contributions 199,036,000$ 202,106,423$ 3,070,423$

Service Fee and Other Income 160,000 316,514 156,514

Investment Income 21,700,000 22,014,197 314,197

Total Revenues 220,896,000 224,437,134 3,541,134

Total Losses and Loss Adjustment Expenses 150,800,000 152,715,379 1,915,379

Reinsurance Expenses 10,559,800 11,583,666 1,023,866

Pension Expenses (incl. OPEB expenses) 1,400,000 5,549,986 4,149,986

Independent Adjuster Fees 2,027,000 1,517,910 (509,090)

Contract Service Fees 1,542,000 1,734,121 192,121

Administrative Expenses 42,929,200 38,364,859 (4,564,341)

Total Expenses 209,258,000 211,465,921 2,207,921 Revenues Over/(Under) Expenses Before Return of Equity Adjustment 11,638,000 12,971,213 1,333,213 Revenues Over/(Under) Expenses After Return of Equity Adjustment 11,638,000$ 12,971,213$ * 1,333,213$

* Excludes the effects of the change in net unrealized gains of $37,734,381.

19

SIGNIFICANT EVENTS DURING 2018-19

Replacement of business operations software and Post-Implementation Review. The Pool

completed the installation of the Finance & Human Resources/Payroll systems in August 2018

and went live with the systems on October 1, 2018. In addition, in 2019, the Pool began using

Concur, a travel and credit card expense management software, which increased the efficiency

of submitting and processing expense statements.

Throughout the period of 2017 through 2019, significant progress was made on the Policy Center

(Underwriting), Billing Center (member billing), and Medical Bill Review software applications.

As a result, the Policy Center and Billing Center applications went live in April 2019. The Medical

Bill Review application became operational in June 2019.

As part of business application implementation process, once a system goes live or is near going

live, the Pool has an independent auditing firm conduct a review of each applications’ internal

controls. This review is for the purpose of helping the Pool identify and quickly remediate

weaknesses in new workflow and processes that are implemented with new business

applications. The Pool contracted with Holtzman Partners, an auditing firm that specializes in

performing Information Technology reviews and audits to conduct a post-implementation review

of the Finance & Human Resources/Payroll, Policy Center, Billing Center and Medical Bill Review

applications.

The auditing firm identified seven Test Exceptions and made eight Leading Practice

Recommendations. All Test Exceptions were remediated before issuance of this Annual Report.

The auditors noted that, “Based on our experience with similar clients, our findings are consistent

with common issues identified after a major system implementation. The organization’s controls

over the change management process are generally consistent with leading practices at other

organizations.”

Provided members with additional property coverage. In April 2019, the Board authorized the

Pool to provide an additional $50 million in reinsurance property coverage. 50% of this coverage

is provided by the Property Fund and 50% from the Reinsurance Fund. As a result of that action,

the Pool now provides $300 million in property reinsurance coverage.

Ending Property Coverage on Monoline Basis. To ensure that property coverage is not

selectively and exclusively acquired, the Pool adopted a new policy that implements a restriction

on property coverages whereby new Real and Personal Property coverage will not be written

on a monoline basis without the member also purchasing from the Pool either Workers’

Compensation or General Liability, Errors and Omissions Liability and Law Enforcement Liability

(if Law Enforcement Liability is applicable); new Automobile Physical Damage and/or

Automobile Catastrophe coverages will not be written on a monoline basis without the member

also purchasing from the Pool either Automobile Liability or Workers’ Compensation; and

Property coverage will not be written for any current member who moves all other lines of

coverage other than Property to another provider. Monoline Real and Personal Property,

20

Automobile Physical Damage or Automobile Catastrophe coverage will continue to be

supported for members who currently only have that coverage for a maximum of three years

to allow the member to purchase other required lines of coverage or withdraw from the Pool

(i.e. these members are “grandfathered” until the 2022-23 Fund Year).

These restrictions shall not apply to members that obtain only a small line of property coverage

(e.g. animal mortality, crime, mobile equipment or Real & Personal Property) from the Pool of

less than 10% of the member’s entire real and personal property, as long as this line of coverage

does not have a higher potential for loss than the member’s remaining real and personal

property portfolio not covered by the Pool.

Property Valuation program. In 2018, the Pool initiated a utility property valuation program.

The Pool contracted with four firms to conduct expert property valuations on complicated

properties such as water and sewer plants, utility plants, and other large high value, high risk

buildings. This program assists members in accurately recording the value of their facilities for

reporting and repair/replacement purposes and the Pool in determining the accurate amount of

contribution for those properties. Through this program, over the past the year, the Pool has

identified millions of dollars of property that was under reported or not reported for coverage

purposes.

Interlocal Cooperation Agreement with the Political Subdivision Workers’ Compensation

Alliance (Alliance). The Alliance is composed of five risk pools, the Texas Municipal League

Intergovernmental Risk Pool, Texas Association of School Boards Risk Management Fund, Texas

Association of Counties Risk Management Fund, Texas Water Conservation Association Risk

Management Fund, and the Texas Council Risk Management Fund for the purpose of providing a

network of medical providers for workers’ compensation claims. To increase administrative

efficiencies and reduce administrative costs, the Pool entered into a multi-year agreement with

the Alliance for the Pool to provide the administrative and operational services for the Alliance

for an annual fee. Under this Interlocal Cooperation Agreement, Alliance employees were hired

as Pool employees and the Pool agreed to provide the day-to-day operations and management

of the Alliance.

Senate Bill 2551 – Specified cancers presumed to be employment related and expanded

investment authority. The Act, previously mentioned, which authorizes risk pools and other

political subdivisions that self-insure to invest certain assets (death benefits and lifetime income

benefits) in investment asset classes other than those authorized under Texas Public Funds

Investment Act also specified eleven types of cancer that are presumed to have developed during

the course and scope of employment (presumption losses) as a firefighter or emergency medical

technician. This Act resolves most of the legislative and judicial uncertainties going forward

concerning what are determined to be presumption losses and provides the Pool a means to

offset some of the long-term costs associated with presumption losses by expanding the

investment authority for the investment of assets reserved for current and future beneficiaries.

21

Segregation of Duties Analysis. In September 2019, the Pool entered into a contract with

Holtzman Partners to conduct a segregation of duties analysis related to the key business

processes and the Guidewire (Policy Center, Billing Center, Claim Center), OneSolution (Finance

& Human Resources/Payroll), and Mitchell Medical Bill Review applications. After the analysis is

completed, to assist the Pool in maintaining appropriate and adequate internal controls,

Holtzman Partners will provide the Pool with a template that will be used for evaluating rolls and

permissions authorities and requests. This analysis is to be conducted in June 2020.

Hurricane Harvey Update. On August 25, 2017, Hurricane Harvey made landfall. There were

442 hurricane related claims submitted by 350 Members. Thirty-six, or 8% of the claims remain

open and 406, or 92% have been closed. At September 30, 2019, the estimated gross loss was

$114.1 million with the Pool retaining $37.6 million and the reinsurers retaining $76.5 million.

Through September 30, 2019, the Pool has paid $92.1 million for these losses or 80.7% of the

amount reserved.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the Pool's finances. Questions

concerning the information provided in this report, or requests for additional financial

information, should be addressed to the Chief Financial Officer, Texas Municipal League

Intergovernmental Risk Pool, P.O. Box 149194, Austin, Texas 78714-9194.

22

COMBINED

Net Position Change in Net Position

September 30, 2019 For the year ended September 30, 2019

(With) (Without) (With) (Without)

GASB 31 GASB 31 GASB 31 GASB 31

Total Assets 732,414,087$ 732,414,087$ Contributions and Other Income 202,422,937$ 202,422,937$

Total Liabilities (362,770,720) (362,770,720) Investment Income 22,014,197 22,014,197

Net Position Before GASB 31 369,643,367 369,643,367

Unrealized 2018 - 19 Gains

(GASB 31 adjustment) 37,734,381 -

Unrestricted Net Position 351,133,423 351,133,423 Revenues 262,171,515 224,437,134

Restricted Net Position* 18,509,944 18,509,944 Losses and Expenses (211,465,921) (211,465,921)

Net Position Before GASB 31 369,643,367 369,643,367 Change in Net Position 50,705,594$ 12,971,213$

GASB 31 Adjustment 18,989,613 -

Net Position After GASB 31 388,632,980$ 369,643,367$

* Restricted Net Position included $6.7 million for the Subsequent

Injury Fund obligation, $10.6 million for Deferred Outflow of

Pension Resources and $1.2 million for ULAE.

WORKERS' COMPENSATION

Net Position Change in Net Position







Unrealized 2018-19 Gains


Unrestricted Net Position 97,572,231 97,572,231 Net Revenues 92,586,128 78,105,904

Restricted Net Position - Pension & ULAE 1,805,383 1,805,383 Losses and Expenses (75,098,751) (75,098,751)

Net Position Before GASB 31 99,377,613 99,377,613 Revenues over Expenses 17,487,377 3,007,153

GASB 31 Adjustment 7,285,522 - Transfer of Equity - Pension & ULAE (2,710,177) (2,710,177)

Net Position After GASB 31 106,663,135$ 99,377,613$ Change in Net Position 14,777,200$ 296,976$

GASB 31 EXPLANATIONS

23

LIABILITYNet Position Change in Net Position










Restricted Net Position - Pension & ULAE 669,702 669,702 Losses and Expenses (56,919,968) (56,919,968)

Net Position Before GASB 31 96,215,869 96,215,869 Revenues over Expenses 10,281,923 (644,040)

GASB 31 Adjustment 5,418,660 - Transfer of Equity - Pension & ULAE (1,033,344) (1,033,344)

Net Position After GASB 31 101,634,529$ 96,215,869$ Change in Net Position 9,248,579$ (1,677,384)$

PROPERTYNet Position Change in Net Position










Restricted Net Position - Pension & ULAE 665,780 665,780 Losses and Expenses (87,256,412) (87,256,412)

Net Position Before GASB 31 53,804,857 53,804,857 Revenues over/(under) Expenses 2,169,767 (1,857,901)

GASB 31 Adjustment 2,170,849 - Transfer of Equity - Pension & ULAE (633,517) (633,517)

Net Position After GASB 31 55,975,706$ 53,804,857$ Change in Net Position 1,536,250$ (2,491,418)$

24

REINSURANCENet Position Change in Net Position




Total Assets 107,794,672$ 107,794,672$ Reinsurance Revenues 11,491,480$ 11,491,480$






Restricted Net Position - Pension & SIF 6,745,973 6,745,973 Losses and Expenses 1,136,109 1,136,109

Net Position Before GASB 31 84,067,568 84,067,568 Revenues over Expenses 21,769,514 15,760,575

GASB 31 Adjustment 2,936,489 - Transfer of Equity - Pension (62,423) (62,423)

Net Position After GASB 31 87,004,057$ 84,067,568$ Change in Net Position 21,707,091$ 15,698,152$

COASTAL STORMNet Position Change in Net Position




Total Assets 12,430,431$ 12,430,431$ Contributions 289,248$ 289,248$

Total Liabilities (21,064) (21,064) Investment Income 361,428 361,428



(GASB 31 adjustment) 617,788 -

Unrestricted Net Position 12,403,371 12,403,371 Net Revenues 1,268,464 650,676

Restricted Net Position - Pension 5,996 5,996 Losses and Expenses (154,720) (154,720)

Net Position Before GASB 31 12,409,367 12,409,367 Revenues over Expenses 1,113,744 495,956

GASB 31 Adjustment 282,052 - Transfer of Equity - Pension (8,473) (8,473)

Net Position After GASB 31 12,691,419$ 12,409,367$ Change in Net Position 1,105,271$ 487,483$

25

STABILITYNet Position Change in Net Position




Total Assets 41,412,924$ 41,412,924$ Investment Income 873,130$ 873,130$

Total Liabilities (17,644,831) (17,644,831)



Net Position Before GASB 31 23,768,093 23,768,093 Net Revenues 2,546,928 873,130

Unrestricted Net Position 15,150,983 15,150,983 Losses and Expenses (4,663,659) (4,663,659)

Restricted Net Position - Pension 8,617,110 8,617,110 Revenues under Expenses (2,116,731) (3,790,529)

Net Position Before GASB 31 23,768,093 23,768,093 Transfer of Equity - Pension & ULAE 4,447,934 4,447,934

GASB 31 Adjustment 896,041 - Change in Net Position 2,331,203$ 657,405$

Net Position After GASB 31 24,664,134$ 23,768,093$

26

REINSURANCE

Property & Auto Physical Damage

*A.M. Best Rating applies only to Lloyd’s of London, Bermuda &Domestic, and Beazley.

Liability

Cyber Liability & Data Breach

**or up to member’s chosen limit if higher than $1 million

Workers’ Compensation

Lloyd’s of London; Everest Reinsurance Co.; Endurance Specialty Reinsurance; American

Agricultural Insurance Co.; Partner Reinsurance Company Ltd.; Chubb Tempest Reinsurance; Hiscox Insurance Ltd.; Allied World Assurance Co., Ltd.; Da Vinci Re, Renaissance Reinsurance Ltd.; Lancashire Insurance Co.,Ltd.; Arch Reinsurance Ltd.; Fidelis

Insurance Bermuda Ltd.; Nautical Management Ltd. (Nephila); Neon Underwriting Bermuda Ltd.;

Vermeer Reinsurance Ltd.; and TMLIRP

Lloyd’s of London, NLC Mutual Insurance Company, & TMLIRP

$15 million per occurrence in excess of $10 million

*A.M. Best Rating A‐ & Above

Pool Retention

$10 million per occurrence in excess of member deductibles

TMLIRP Up to $10 million

Third Party Liability*

75% Quota Share of $50,000 – Beazley

25% Quota Share of $50,000 – TMLIRP

100% Quota Share of $1M** excess $50,000 – TMLIRP

First Party Liability

75% Quota Share of $1 million – Beazley

25% Quota Share of $1 million ‐ TMLIRP

TMLIRP statutory limits

27

FINANCIAL STATEMENTS & REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2019 & 2018

28

Texas Municipal League Intergovernmental Risk Pool

TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLSTATEMENTS OF NET POSITIONAS OF SEPTEMBER 30, 2019 AND 2018

ASSETS

Current Assets 2019 2018 2019 2018 2019 2018 2019 2018Cash and cash equivalents 7,379,060$ 8,876,786$ 5,529,902$ 6,794,879$ 2,215,420$ 2,290,938$ 343,877$ 414,228$ Short-term investments 4,912,080 2,810,636 3,681,137 2,151,447 1,474,758 725,374 228,912 131,156 Long-term fixed income investments 257,724,364 234,904,332 193,139,873 179,811,308 77,376,783 60,624,561 12,010,421 10,961,631 Accrued investment income 1,195,510 1,156,497 895,921 885,260 358,929 298,472 55,714 53,968

Total cash, investments, and accrued interest (amortized cost $693,286,904 for 2019 and $664,217,206, for 2018) (notes 3 and 4)

271,211,014 247,748,251 203,246,833 189,642,894 81,425,890 63,939,345 12,638,924 11,560,983

Investment trade receivables 7,289 10,065 5,463 7,705 2,189 2,598 340 470

Contributions and other receivables 2,055,145 2,513,608 1,417,319 1,149,771 444,251 711,543 - (21,530)Reinsurance recoverable on paid losses 57,405 69,663 87,787 - 2,164,039 5,186,914 - -

Prepaid reinsurance - - - - 7,208,887 5,679,725 - -Total Current Assets 273,330,853 250,341,587 204,757,402 190,800,370 91,245,256 75,520,125 12,639,264 11,539,923

Noncurrent Assets

Capital assets (land, building, furniture and equipment) (note 5) 6,386,239 5,299,940 3,193,120 2,649,970 3,193,120 2,649,970 67,223 55,789

Net pension asset (note 10) - - - - - - - - Other assets (note 6) 589,535 550,256 474,549 454,910 540,152 520,513 - -

Total noncurrent assets 6,975,774 5,850,196 3,667,669 3,104,880 3,733,272 3,170,483 67,223 55,789

Deferred outflows of pension resources 1,055,383 1,120,072 509,702 572,812 375,780 374,777 5,996 6,388

Deferred outflows of pension resources - OPEB - - - - - - - -

Total Assets and Deferred Outflows 281,362,010$ 257,311,855$ 208,934,773$ 194,478,062$ 95,354,308$ 79,065,385$ 12,712,483$ 11,602,100$

LIABILITIES AND NET POSITION

Current Liabilities

Claim Reserves:

Reserve for reported claims - net 122,715,225$ 119,437,376$ 76,356,145$ 69,014,874$ 27,130,515$ 16,666,923$ 5,000$ -$

Reserve for incurred but not reported claims - net (note 2) 66,900,000 62,900,000 25,600,000 27,400,000 2,425,000 (875,000) - -

Reserve for unallocated loss adjustment expenses - - - - - - - - Estimated future investment income (26,110,383) (26,790,368) - - - - - -

Estimated ultimate unpaid losses & loss adjustment expenses 163,504,842 155,547,008 101,956,145 96,414,874 29,555,515 15,791,923 5,000 -

Payable to admin. service only contracts 1,546,425 1,600,300 - - - - - -

Investment trade payables - - - - - - - - Outstanding loss drafts 1,731,922 1,252,913 1,723,334 2,241,627 3,302,857 1,897,130 - - Unearned contribution reserve (note 2) 946,875 1,228,660 914,721 940,286 2,709,250 2,511,040 16,064 15,952 Reinsurance payable - - 27,425 8 1,127,798 1,929,386 - - Other liabilities (note 2) 3,324,572 2,257,051 856,500 725,322 861,063 726,455 - - OPEB liability (note 11) - - - - - - - - Net pension liability - (note 10) - - - - - - - -

Total current liabilities 171,054,636 161,885,932 105,478,125 100,322,117 37,556,483 22,855,934 21,064 15,952Noncurrent Liabilities

Funds invested for TML (note 9) 3,644,239 3,539,988 1,822,119 1,769,995 1,822,119 1,769,995 - - Total noncurrent liabilities 3,644,239 3,539,988 1,822,119 1,769,995 1,822,119 1,769,995 - - Total Liabilities 174,698,875 165,425,920 107,300,244 102,092,112 39,378,602 24,625,929 21,064 15,952

NET POSITION

Invested in capital assets (net) - (note 5) 6,386,239 5,299,940 3,193,120 2,649,970 3,193,120 2,649,970 67,223 55,789 Restricted Net Position - Pension (note 10) 1,055,383 1,120,072 509,702 572,812 375,780 374,777 5,996 6,388 Restricted Net Position - ULAE (note 2) 750,000 1,500,000 160,000 320,000 290,000 580,000 - - Restricted Net Position - SIF (note 2) - - - - - - - -

Unrestricted Net Position 98,471,513 83,965,923 97,771,707 88,843,168 52,116,806 50,834,709 12,618,200 11,523,971

Total Net Position (includes net unrealized investment gains/(losses) of $18,989,613 for 2019 and ($18,744,767) for 2018) (note 2) 106,663,135 91,885,935 101,634,529 92,385,950 55,975,706 54,439,456 12,691,419 11,586,148

Total Liabilities and Net Position 281,362,010$ 257,311,855$ 208,934,773$ 194,478,062$ 95,354,308$ 79,065,385$ 12,712,483$ 11,602,100$

The accompanying notes are an integral part of these financial statements

Workers' Compensation Coastal StormPropertyLiability

29


September 30, September 30,2019 2018

2019 2018 2019 2018 Current Year Prior Year2,996,790$ 3,790,768$ 914,440$ 959,590$ 19,379,489$ 23,127,189$ 1,994,898 1,200,262 608,722 303,833 12,900,507 7,322,708

104,667,230 100,314,215 31,938,104 25,393,396 676,856,775 612,009,443 485,521 493,874 148,151 125,018 3,139,746 3,013,089

110,144,439 105,799,119 33,609,417 26,781,837 712,276,517 645,472,429

2,960 4,298 903 1,088 19,144 26,224

- - - - 3,916,715 4,353,392- - - - 2,309,231 5,256,577- - - - 7,208,887 5,679,725

110,147,399 105,803,417 33,610,320 26,782,925 725,730,494 660,788,347

537,789 446,311 67,223 55,789 13,444,714 11,157,769

- - - 5,005,695 - 5,005,695 - - - - 1,604,236 1,525,679

537,789 446,311 67,223 5,061,484 15,048,950 17,689,143

45,973 48,977 8,617,110 (2,408,496) 10,609,944 (285,470)

- - 14,312 49,064 14,312 49,064

110,731,161$ 106,298,705$ 42,308,965$ 29,484,977$ 751,403,700$ 678,241,084$

18,977,104$ 34,551,739$ -$ -$ 245,183,989$ 239,670,912$

4,750,000 6,450,000 - - 99,675,000 95,875,000

- - 8,200,000 6,500,000 8,200,000 6,500,000- - - - (26,110,383) (26,790,368)

23,727,104 41,001,739 8,200,000 6,500,000 326,948,606 315,255,544

- - - - 1,546,425 1,600,300

- - - - - - - - - - 6,758,113 5,391,670- - - - 4,586,910 4,695,938- - - - 1,155,223 1,929,394 - - - - 5,042,135 3,708,828- - 668,120 652,046 668,120 652,046 - - 8,776,711 - 8,776,711 -

23,727,104 41,001,739 17,644,831 7,152,046 355,482,243 333,233,720

- - - - 7,288,477 7,079,978- - - - 7,288,477 7,079,978

23,727,104 41,001,739 17,644,831 7,152,046 362,770,720 340,313,698

537,789 446,311 67,223 55,789 13,444,714 11,157,76945,973 48,977 8,617,110 2,597,199 10,609,944 4,720,225

- - - - 1,200,000 2,400,000 6,700,000 6,700,000 - - 6,700,000 6,700,000

79,720,295 58,101,678 15,979,801 19,679,943 356,678,322 312,949,392

87,004,057 65,296,966 24,664,134 22,332,931 388,632,980 337,927,386

110,731,161$ 106,298,705$ 42,308,965$ 29,484,977$ 751,403,700$ 678,241,084$


Reinsurance Stability

Totals

30


TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLSTATEMENTS OF OPERATIONS AND CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

Operating Revenues 2019 2018 2019 2018 2019 2018 2019 2018Earned Contributions 69,470,529$ 68,344,215$ 49,934,438$ 49,746,349$ 82,412,208$ 71,760,330$ 289,248$ 241,763$ (less: cost of reinsurance - outside reinsurers) - - (404,034) (442,788) (11,179,632) (10,016,190) - - (less: cost of reinsurance - reinsurance fund) (2,165,317) (2,103,735) (729,598) (718,904) (8,592,226) (6,734,563) (4,339) (3,626)

Net Contributions 67,305,212 66,240,480 48,800,806 48,584,657 62,640,350 55,009,577 284,909 238,137

Investment Income (Interest Income) (note 4) 9,631,308 8,988,499 7,305,937 7,013,436 3,426,754 3,264,849 417,433 392,045 Investment Income (Change in Fair Value) (note 4) 13,192,181 (10,975,104) 9,949,314 (8,488,136) 3,575,015 (3,104,618) 561,783 (508,657) Service Fees and Other Income 292,110 202,297 12,202 82,513 12,202 83,455 - - Reinsurance Revenue - - - - - - - -

Total Operating Revenues 90,420,811 64,456,172 66,068,259 47,192,470 69,654,321 55,253,263 1,264,125 121,525Operating Expenses

Net Paid Losses and Loss Adjustment Expenses 42,527,341 40,665,456 39,221,538 42,634,370 44,303,094 37,239,712 - 7,131 Net Change in Reserve for Reported Claims 3,277,849 (3,283,797) 7,341,271 (6,397,725) 10,463,592 90,660 5,000 (19,000) Net Change in Reserve for Incurred but not Reported Claims 4,000,000 8,600,000 (1,800,000) 6,500,000 3,300,000 1,500,000 - - Net Change in Estimated Future Investment Income 679,985 851,919 - - - - - - Change in Unallocated Loss Adjustment Expense - - - - - - - - Independent Adjusters Fees - - 388,350 - 1,129,560 - - -

Total Losses and Loss Adjustment Expenses 50,485,175 46,833,578 45,151,159 42,736,645 59,196,246 38,830,372 5,000 (11,869)

Contract Service Fees (note 7) 1,048,430 762,856 344,131 567,060 291,370 2,220,533 5,020 1,047Pension expense (note 10) 1,442,037 1,259,853 728,293 635,441 489,847 584,402 8,016 11,630OPEB expense (note 11) - - - - - - - - General and Administrative Expense 19,957,792 18,821,326 9,562,753 9,331,285 7,507,091 6,975,737 132,345 124,774 Total Operating Expenses 72,933,434 67,677,613 55,786,336 53,270,431 67,484,554 48,611,044 150,381 125,582Revenues Over/(Under) Expenses 17,487,377 (3,221,441) 10,281,923 (6,077,961) 2,169,767 6,642,219 1,113,744 (4,057)Transfer of Equity - Pension (note 10) (1,460,177) (392,931) (673,344) (209,876) (543,517) 32,429 (8,473) 2,234

Transfer of Equity - ULAE (note 2) (1,250,000) (742,823) (360,000) (151,177) (90,000) (306,000) - -

Prior period adjustment - OPEB (note 11) - - - - - - - -

Net Position, beginning of year 91,885,935 96,243,130 92,385,950 98,824,964 54,439,456 48,070,808 11,586,148 11,587,971

Net Position, end of year 106,663,135$ 91,885,935$ 101,634,529$ 92,385,950$ 55,975,706$ 54,439,456$ 12,691,419$ 11,586,148$


Workers' Compensation Liability Property Coastal Storm

31


September 30, September 30,2019 2018

2019 2018 2019 2018 2019 2018 Current Year Prior Year-$ -$ -$ -$ -$ -$ 202,106,423$ 190,092,657$ - - - - - - (11,583,666) (10,458,978)- - - - 11,491,480 9,560,828 - -

- - - - 11,491,480 9,560,828 190,522,757 179,633,679

3,619,206 3,763,299 1,008,948 854,880 - - 25,409,586 24,277,008 5,522,719 (4,900,209) 1,537,980 (1,157,450) - - 34,338,992 (29,134,174)

- - - - - - 316,514 368,265 11,491,480 9,560,828 - - (11,491,480) (9,560,828) - -

20,633,405 8,423,918 2,546,928 (302,570) - - 250,587,849 175,144,778

14,970,344 28,475,788 - - - - 141,022,317 149,022,457(15,574,635) (8,796,247) - - - - 5,513,077 (18,406,109)(1,700,000) (4,200,000) - - - - 3,800,000 12,400,000

- - - - - - 679,985 851,919- - 1,700,000 1,200,000 - - 1,700,000 1,200,000 - - - - - - 1,517,910 -

(2,304,291) 15,479,541 1,700,000 1,200,000 - - 154,233,289 145,068,267

40,151 8,374 5,019 1,047 - - 1,734,121 3,560,91763,999 95,171 2,764,424 554,382 - - 5,496,616 3,140,879

- - 53,370 51,987 - - 53,370 51,9871,064,032 1,010,314 140,846 129,362 - - 38,364,859 36,392,798

(1,136,109) 16,593,400 4,663,659 1,936,778 - - 199,882,255 188,214,84821,769,514 (8,169,482) (2,116,731) (2,239,348) - - 50,705,594 (13,070,070)

(62,423) 23,158 2,747,934 544,986 - - - -

- - 1,700,000 1,200,000 - - - -

- - - (555,284) - - - (555,284)

65,296,966 73,443,290 22,332,931 23,382,577 - - 337,927,386 351,552,740

87,004,057$ 65,296,966$ 24,664,134$ 22,332,931$ -$ -$ 388,632,980$ 337,927,386$


TotalsInterfund

TransactionsReinsurance Stability

32


TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLSTATEMENTS OF CASH FLOWSFOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

Cash Flows From Operating Activities: 2019 2018 2019 2018 2019 2018 2019 2018Receipts from member contributions 69,647,207$ 68,110,696$ 49,641,325$ 49,821,525$ 82,877,710$ 71,778,932$ 267,831$ 260,960$ Receipts from service fees and other income 267,708 137,336 - 50,032 - 50,974 - - Receipts from reinsurers 272,383 290,545 9,628 1,358 47,087,962 52,084,533 - - Receipts from third parties - claim recoveries 989,317 1,977,034 854,225 659,420 4,908,511 5,110,126 - - Payments on claims (43,297,775) (42,807,087) (40,691,470) (42,314,301) (91,870,964) (114,853,106) - (7,131) Payments to outside reinsurers - - (376,617) (413,202) (11,981,220) (8,839,939) - -Payments for employee salary and benefits (16,346,593) (15,734,942) (7,864,402) (7,807,714) (5,851,029) (5,434,944) - -Payments to suppliers (3,198,636) (3,357,324) (1,871,161) (2,020,724) (1,651,109) (1,789,807) (132,365) (128,024) Payments to contractors (1,048,430) (762,856) (732,481) (567,060) (1,420,930) (2,220,533) (5,020) (1,047)Contributions (to)/from other funds - Reinsurance (2,165,317) (2,103,735) (729,598) (718,904) (8,592,226) (6,734,563) (4,339) (3,626) Receipts from/Payments (to) ASO members (53,875) 350 - - - - - - Payments for reinsurance - - - - (1,529,162) (1,578,002) - - Payments (for)/Receipts from other assets (39,279) (12,890) (19,639) (6,445) (19,639) (6,445) - - Receipts from TML for investment 104,251 (49,583) 52,124 (24,791) 52,124 (24,791) - -

Net cash provided by/(used for) operating activities (without interest income) 5,130,961 5,687,544 (1,728,066) (3,340,806) 12,010,028 (12,457,565) 126,107 121,132

Cash Flows From Capital and Related Financing Activities:

Proceeds from sale of capital assets 24,402 64,961 12,201 32,481 12,201 32,481 - - Purchases of capital assets (1,808,688) (2,326,320) (904,345) (1,163,161) (904,345) (1,163,161) (19,039) (24,488) Transfer of equity - ULAE (1,250,000) (742,823) (360,000) (151,177) (90,000) (306,000) - - Transfer of equity - pension (1,460,177) (392,931) (673,344) (209,876) (543,517) 32,429 (8,473) 2,234

Net cash used for capital and related financing activities (4,494,463) (3,397,113) (1,925,488) (1,491,733) (1,525,661) (1,404,251) (27,512) (22,254)

Cash Flows From Investing Activities:

Proceeds from sale and maturity of investments 46,459,495 82,922,974 38,698,018 69,619,609 3,543,474 34,260,086 2,126,940 3,903,433 Purchase of investments (58,188,790) (95,807,450) (43,606,959) (73,337,358) (17,470,065) (24,726,171) (2,711,703) (4,470,782)Increase in trade receivables 1,295 364,377 1,054 288,684 171 114,618 61 17,051 Decrease in trade payables - (985,111) - (780,103) - (309,097) - (46,096) Interest income received 9,593,776 9,037,219 7,296,464 7,082,711 3,366,535 3,344,808 415,756 394,476

Net cash (used for)/provided by investing activities (2,134,224) (4,467,991) 2,388,577 2,873,543 (10,559,885) 12,684,244 (168,946) (201,918)

Net (decrease)/increase in cash and cash equivalents (1,497,726) (2,177,560) (1,264,977) (1,958,996) (75,518) (1,177,572) (70,351) (103,040)

Cash and cash equivalents at beginning of year 8,876,786 11,054,346 6,794,879 8,753,875 2,290,938 3,468,510 414,228 517,268

Cash and cash equivalents at end of year 7,379,060$ 8,876,786$ 5,529,902$ 6,794,879$ 2,215,420$ 2,290,938$ 343,877$ 414,228$


PropertyLiabilityWorkers' Compensation Coastal Storm

33


September 30, September 30,

2019 20182019 2018 2019 2018 Current Year Prior Year

-$ -$ -$ -$ 202,434,073$ 189,972,113$ - - - - 267,708 238,342- - - - 47,369,973 52,376,436- - - - 6,752,053 7,746,580

(14,970,343) (28,475,788) - - (190,830,552) (228,457,413)- - - - (12,357,837) (9,253,141)- - - - (30,062,024) (28,977,600)

(1,064,194) (1,036,316) (143,410) (136,901) (8,060,875) (8,469,096)(40,152) (8,374) (5,019) (1,047) (3,252,032) (3,560,917)

11,491,480 9,560,828 - - - - - - - - (53,875) 350- - - - (1,529,162) (1,578,002)- - - - (78,557) (25,780)- - - - 208,499 (99,165)

(4,583,209) (19,959,650) (148,429) (137,948) 10,807,392 (30,087,293)

- - - - 48,804 129,923(152,311) (195,901) (19,039) (24,488) (3,807,767) (4,897,519)

- - 1,700,000 1,200,000 - - (62,423) 23,158 2,747,934 544,986 - -

(214,734) (172,743) 4,428,895 1,720,498 (3,758,963) (4,767,596)

24,006,748 55,589,984 1,899,342 7,804,600 116,734,017 254,100,685(23,631,680) (40,913,887) (7,210,959) (10,356,883) (152,820,156) (249,612,530)

635 187,563 80 37,527 3,296 1,009,820 - (505,874) - (101,527) - (2,727,808)

3,628,262 3,888,752 985,921 854,049 25,286,714 24,602,015

4,003,965 18,246,538 (4,325,616) (1,762,234) (10,796,129) 27,372,182

(793,978) (1,885,855) (45,150) (179,684) (3,747,700) (7,482,707)

3,790,768 5,676,623 959,590 1,139,274 23,127,189 30,609,896

2,996,790$ 3,790,768$ 914,440$ 959,590$ 19,379,489$ 23,127,189$


Totals

Reinsurance Stability

34


TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLSTATEMENTS OF CASH FLOWSFOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

Cash Flow - Reconciliation of Revenues

Over/(Under) Expenses to Net Cash provided by

(used for) Operating Activities 2019 2018 2019 2018 2019 2018 2019 2018

Operating revenues over/(under) operating expenses 17,487,377$ (3,221,441)$ 10,281,923$ (6,077,961)$ 2,169,767$ 6,642,219$ 1,113,744$ (4,057)$

Adjustments to reconcile revenues over/(under) expenses to net cash provided by/(used for) operating activities

Depreciation expense 722,389 428,334 361,195 214,168 361,195 214,168 7,604 4,509 (Increase) decrease to pension asset - - - - - - - - (Decrease) increase to deferred outflows of pension resources 64,689 (145,421) 63,110 (85,486) (1,003) 112,549 392 3,871 (Decrease) increase to deferred outflows of pension resources - OPE - - - - - - - - Decrease (increase) in fair value of investments (13,192,181) 10,975,104 (9,949,314) 8,488,136 (3,575,015) 3,104,618 (561,783) 508,657Pension contribution to TMRS - - - - - - - - Increase (decrease) in OPEB liability - - - - - - - - Increase (decrease) in loss reserves 7,957,834 6,168,123 5,541,271 102,275 13,763,592 1,590,660 5,000 (19,000) Gain from sale of property and equipment (24,402) (64,961) (12,201) (32,481) (12,201) (32,481) - - (Increase) decrease in contributions and other receivables 458,463 (58,978) (267,548) 105,629 267,292 (174,488) (21,530) 19,184 Decrease (increase) in reinsurance recoverable 12,258 113,640 (87,787) - 3,022,875 (5,180,392) - - (Increase) decrease in prepaid reinsurance - - - - (1,529,162) (1,578,002) - - (Increase) decrease in other assets (39,279) (12,890) (19,639) (6,445) (19,639) (6,445) - - Increase (decrease) in other liabilities 1,067,521 706,000 131,178 9,607 134,608 8,671 - - (Decrease) increase in unearned contributions reserve (281,785) (174,541) (25,565) (30,453) 198,210 193,090 113 13 (Decrease) increase in funds invested for TML 104,251 (49,583) 52,124 (24,791) 52,124 (24,791) - - (Decrease) increase in reinsurance payable - - 27,417 (14,705) (801,588) (752,549) - - (Decrease) increase in reinsurance deposit for unpaid losses - - - - - (12,000,000) - - Increase (decrease) in payable to Administrative Services Only contracts (53,875) 350 - - - - - -

(Decrease) increase in outstanding loss drafts 479,009 12,308 (518,293) 1,025,138 1,405,727 (1,309,543) - -

(Increase) decrease in accrued investment income (39,012) 48,937 (10,661) 69,317 (60,458) 79,755 (1,746) 2,439

(Increase) decrease in investment trade receivable 1,480 922 1,188 860 239 562 69 44

Increase (decrease) in investment trade payable - (1,140) - (903) - (358) - (52)

Net cash provided by/(used for) operating activites 14,724,737 14,724,763 5,568,398 3,741,905 15,376,563 (9,112,757) 541,863 515,608

Adjustment for Receipt of Interest Income (9,593,776) (9,037,219) (7,296,464) (7,082,711) (3,366,535) (3,344,808) (415,756) (394,476)

Net cash provided by/(used for) operating activites (without interest income) 5,130,961$ 5,687,544$ (1,728,066)$ (3,340,806)$ 12,010,028$ (12,457,565)$ 126,107$ 121,132$

(Statements of Cash Flows continued from previous page)


Workers' Compensation PropertyLiability Coastal Storm

35


September 30, September 30,

2019 20182019 2018 2019 2018 Current Year Prior Year

21,769,514$ (8,169,482)$ (2,116,731)$ (2,239,348)$ 50,705,594$ (13,070,070)$

60,833 36,070 7,604 4,509 1,520,820 901,758- - 5,005,695 (5,005,695) 5,005,695 (5,005,695)

3,004 33,099 (11,025,606) 9,314,680 (10,895,414) 9,233,292 - - 34,752 (49,064) 34,752 (49,064)

(5,522,719) 4,900,209 (1,537,980) 1,157,450 (34,338,992) 29,134,174- - 8,776,711 (3,762,362) 8,776,711 (3,762,362) - - 16,074 96,762 16,074 96,762

(17,274,635) (12,996,247) 1,700,000 1,200,000 11,693,062 (3,954,189)- - - - (48,804) (129,923)- - - - 436,677 (108,653)- - - - 2,947,346 (5,066,752)- - - - (1,529,162) (1,578,002)- - - - (78,557) (25,780)- - - - 1,333,307 724,278- - - - (109,027) (11,891)- - - - 208,499 (99,165)- - - - (774,171) (767,254)- - - - - (12,000,000)

- - - - (53,875) 350

- - - - 1,366,443 (272,097)8,353 125,142 (23,133) (784) (126,657) 324,806

703 896 106 70 3,785 3,354 - (585) - (117) - (3,155)

(954,947) (16,070,898) 837,492 716,101 36,094,106 (5,485,278) (3,628,262) (3,888,752) (985,921) (854,049) (25,286,714) (24,602,015)

(4,583,209)$ (19,959,650)$ (148,429)$ (137,948)$ 10,807,392$ (30,087,293)$


Stability

Totals

Reinsurance

36

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - DESCRIPTION OF OPERATIONS

The Texas Municipal League Intergovernmental Risk Pool (the Pool) provides workers’ compensation, liability and property coverages for certain governmental entities of the State of Texas. Member entities include cities, housing authorities, municipal utility districts, councils of government, hospital districts, fire districts/emergency service districts, water and irrigation districts, tax appraisal districts and other special districts and authorities. At September 30, 2019 and 2018, the Pool has 2,814 and 2,827 members respectively participating in its programs. The Pool consists of enterprise funds including the Workers’ Compensation, Liability, Property, Coastal Storm, Reinsurance, and Stability Funds. For external reporting purposes, the Pool classifies all of its Funds as “major funds” as prescribed by the Governmental Accounting Standards Board (GASB).

The Texas Municipal League Workers’ Compensation Joint Insurance Fund (Workers’ Compensation) was created in January 1974. This Fund provides coverage that conforms to the workers’ compensation laws of Texas. This Fund also provides excess workers’ compensation coverage over per occurrence retentions and corridor deductibles.

In 1981, the Texas Municipal League Joint-Self Insurance Fund (Liability and Property) was created. The coverages provided by the Liability Fund include general liability, errors and omissions liability, law enforcement liability, automobile liability, cyber and data breach liability, hangarkeepers liability, chartered aircraft and airport liability, and supplemental sewage backup liability. The Property Fund provides real and personal property, automobile physical damage, mobile equipment, boiler and machinery, crime and animal mortality coverage.

The Stability and Reinsurance Funds were created in 1990. The purpose of these funds is to provide additional self-funded layers of risk and stability for Pool operations. The Stability Fund was created to provide protection of all of the Pool’s claims incurring funds to offset the inability of any such fund to meet its cash requirements, provide a reserve for Unallocated Loss Adjustment Expenses (ULAE), and be the mechanism to fund the non-operational Texas Municipal Retirement System unfunded liability. The Reinsurance Fund provides reinsurance, similar to external reinsurance providers, to the claims incurring funds.

In 2007, the Pool created the Coastal Storm Fund. This Fund is a source of windstorm and hail coverage for properties located in the first tier of counties adjacent to the Gulf of Mexico with certain characteristics that reduce the likelihood of damage caused by windstorm and hail. The Coastal Storm Fund provides coverage that cannot be readily provided by the Property Fund due to reinsurance limitations.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change in Accounting Principle On October 1, 2017, the Pool adopted GASB Statement No. 75, Accounting and Financial Reporting for Post- Employment Benefits Other than Pensions. The change in accounting principle resulted in a reduction of net position as of October 1, 2017 of $555,284. See Note 11.

Financial Statements The basic financial statements consist of individual account balances for the Workers’ Compensation, Liability, Property, Reinsurance, Stability, and Coastal Storm Funds. The effects of interfund transactions were eliminated on the combined financial statements. The financial statements of the Pool have been prepared using the accrual basis of accounting in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental entities.

Contribution Recognition Generally, member entities pay annual contributions to obtain workers’ compensation, liability, property, and coastal storm coverage for each fiscal year ending September 30. These contributions are earned on a pro-rata


37

basis over the period of coverage. General liability, automobile liability, and property rates are determined by the Board and are based on the Pool’s experience. Initial rates were based on the rates established by the Insurance Services Office and have been adjusted over time as the Pool’s experience developed. Rates for law enforcement liability and public officials’ errors and omissions coverages are determined by the Board. Workers’ Compensation contributions are based on rates established by the Board. Initial rates were based on the rates established by the Texas Department of Insurance and have been adjusted over time as the Pool’s experience developed. Workers’ compensation rates are then adjusted using experience modifiers and discounts based on members’ individual loss experience. Coastal Storm contributions are 80% of the premium charged by Texas Windstorm Insurance Association (TWIA). Liability and Property contributions are adjusted using an experience modifier based on members’ individual loss experience. These credits and adjustments have been netted against contributions in the Workers’ Compensation, Liability and Property Statements of Operations and Changes in Net Position. Cyber liability and breach response services were added to the Pool’s available coverage. The majority of costs for this coverage are absorbed by the Pool’s Liability Fund, however, members that elect higher limits are billed in accordance with the contribution calculated by the Pool’s reinsurer.

Investments Cash, cash equivalents and investments are combined for banking and investment purposes, but individual fund balances are determined by fund operations and financial results. The Pool presents all of its investments on the balance sheet at fair value and recognizes changes in the fair value of investments as a component of investment income on the Statements of Operations and Changes in Net Position.

The intent of the Pool is to buy and hold investments until they mature. However, the Pool may sell securities as a prudent measure based on market conditions. Long-term fixed income investments consist of United States Government and agency securities, and municipal bonds. Short-term investments include securities with maturity dates within one year. Cash equivalents include demand, money market, and investment pool funds.

Investing is a primary ongoing operation of the Pool and all investment income is used to fund Pool operations. Investment income is also a determining factor used in setting contribution rates. It is the Pool’s policy to consider investment income (excluding change in fair value) as an important component of total operating income.

On June 10, 2019, the state legislature enacted a law that expanded investment authority for governmental self-insurance risk pools to include investment instruments governed solely by the “Prudent Person” rule. Authorized assets that can be invested under this law are current and future reserves for workers’ compensation death and lifetime income benefit claims. Though the law was enacted in 2019, the Board will not implement the new authority until 2020, when they revise the investment policy.

Fair Value Measurements Estimates of fair value for financial assets are based on the framework established in the fair value measurements and disclosures accounting guidance. The framework is based on the inputs used in valuation and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance includes a hierarchy based on whether significant valuation inputs are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect significant market assumptions.

Fair values are based on quoted market prices when available (Level 1). The Pool receives the quoted market prices from a third party nationally recognized in pricing service. When market prices are not available, the Pool utilizes a pricing service to determine an estimate of fair value, which is mainly used for the Pool’s debt securities’ fair value. The fair value is generally estimated using current market inputs for similar financial instruments with comparable terms and credit quality, commonly referred to as matrix pricing (Level 2). In instances where there is little or no market activity for the same or similar instruments, the Pool estimates fair value using methods, models and assumptions that management believes are relevant to the particular asset. This may include discounted cash flow analysis or other income-based approaches (Level 3). These valuation techniques involve some level of management estimation and judgment. The Pool recognizes transfers between levels at the end of the reporting period.

Claim Reserves After considering the consulting actuary’s analysis, claim reserves represent management’s best estimate of ultimate net unpaid losses. Estimated net ultimate losses include claims that have been reported but not yet paid,


38

estimates of additional development of initial claim estimates, and claims that have been incurred but not yet reported (IBNR) to the Pool, net of reinsurance.

The actuary’s analysis includes allocated loss adjustment expenses that can be associated directly with specific claims, such as legal fees. The Pool also accrues a reserve estimate for ULAE in the Stability Fund, which represents expected future costs that cannot be associated with specific claims but will be related to claims in the process of settlement, such as salaries of the Pool’s claims department, and other costs of administering and closing claims.

The Pool has accumulated a base of reported loss data which is used to project ultimate losses. Estimates of incurred losses for all accident years involve estimation of future events and costs that may significantly differ from costs ultimately realized due to a number of factors.

Although considerable variability is inherent in estimates of trends in loss severity and frequency, management believes the reserves for losses and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. As adjustments to these estimates become necessary, such adjustments are reflected in current operations.

Reinsurance premiums, losses, and loss adjustment expenses are accounted for consistent with the original coverage documents issued and the terms of the reinsurance contracts. Certain reinsurance contracts include provisions for reinstatement premiums that are estimated and included in current operations when incurred.

The Pool discounts claim reserves in the Workers’ Compensation Fund for all unpaid lifetime benefits to beneficiaries of employees fatally injured on the job. As such, the unpaid benefits have a determinable duration and amount, and are discounted as follows:

• For claims prior to October 1, 2013, the Board authorized varying discount rates of 5%, 6%, and 9%. Theundiscounted reserves were based on the 1980 industry life expectancy table.

• Effective October 1, 2013, the Board established a discount rate of 4.6% for all 2013-14 and later claims.The undiscounted reserves for these claims will be based on the most recent National Vital Statistics Reportslife expectancy tables.

• Effective October 1, 2014, the Board expanded the Pool’s discounting on loss reserve policy to includeworkers’ compensation indemnity claims that qualify under the Lifetime Income Benefits provision in theTexas Workers’ Compensation Act, and that the Pool use the same methodology and factors in determiningthe reserve amount consistent with the application of the Pool’s policy of discounting fatality losses.

• Effective September 1, 2015, the state law changed to provide that a surviving spouse of a first responderfatally injured on the job will receive lifetime weekly death benefits. Prior to September 1, 2015, the lifetimebenefits ended when the surviving spouse remarried. As a result of this legislative change, the Pooldiscontinued applying the life change factor for first responder surviving spouse benefits since it no longerapplies.

• The discount rates included a component for future interest income plus life changes such as remarriage,children not continuing their education, etc., except for all first responder claims with an accident date ofSeptember 1, 2015 and later. For these claims, the life change factor was not included in the discount rate.

• Effective September 30, 2018, the discount rate for qualifying lifetime income benefit and death benefitreserves for the surviving spouse of non-first responder is 4.4%, and 3.5% for death benefit reservesestablished for the surviving spouse of a first responder. The Board also approved normalizing the discount rates for all previously discounted reserves so that they are in accordance with the updated discount policy.The normalizing of all discount rates increased the reserves by $3.3 million. For rate stabilization purposes, the Board decided to increase the amount of the reserves by 1/3 of the $3.3 million, or $1.1 million per year over the three-year period beginning with the 2017-18 fiscal year.

At September 30, the reserves for reported lifetime benefit claims (net of reinsurance) and estimated present value of these reserves were as follows:

Lifetime Income Benefits 2019 2018Reserves $66,540,849 $65,291,174Discount (26,110,383) (26,790,368) Present Value $40,430,466 $38,500,806


39

Net Position Net Position supports the Pool’s operations, provides protection against enterprise risks (underwriting, reserving, asset, and operational risks), and maintains the financial stability and strength of the Pool.

In order to maintain financial stability and protect the Pool against enterprise risks, the Pool had a Target Fund Balance Review conducted by PricewaterhouseCoopers, LLP (PwC), and on April 26, 2014, based on that study, the Board adopted a policy establishing minimum and maximum target net position funding levels on a combined fund basis. The minimum target funding level is based on the projected capital requirements to fund a 1-in-250 year occurrence and the maximum level was set at the minimum target funding level plus funding for an additional 1-in-20 year occurrence.

The Board also set minimum net position equity goals for the Workers’ Compensation, Liability, Property, and Coastal Storm Funds based on the projected capital requirements to fund a 1-in-100 year occurrence.

Each year, using a modified PwC provided template, the Pool performs an analysis of the combined and individual operating fund minimum and maximum net position requirements and adopts updated minimum and maximum funding level parameters. For the 2016-17 fiscal year, the Pool set the range for minimum target equity level at $418.5 million and the maximum at $620.4 million on a combined fund basis.

In July 2019 the minimum of the combined fund target equity range was $315.3 million, and the maximum was $471.5 million. The Pool ended the 2019 fiscal year with $388.6 million, which is above the target equity minimum on a combined fund basis.

The Board also adopted an Equity (Net Position) Return Policy. Though at time, individual funds were eligible for an equity distribution, because of the unknown impact of changes in the presumption law, recent significant property-related losses and other uncertainties, the Pool did not distribute members’ equity.

GASB Statement No. 31 requires the Pool to report investments on the Statements of Net Position at fair value. Due to this GASB requirement, net position shown on the Statements of Net Position as of September 30, 2019 and 2018 includes unrealized gains and losses on investments as follows:

On October 2013, the Board authorized restricting $4.7 million in equity in the Large Loss Fund for the purpose of establishing a conservative approach for the Subsequent Injury Fund’s long-term obligations to the Pool. The Large Loss Fund was merged into the Reinsurance Fund on October 1, 2016. On September 30, 2018, the Board authorized restricting an additional $2.0 million in equity in the Reinsurance Fund for the Subsequent Injury Fund’s long-term obligations to the Pool.

On October 2018, the Board increased the ULAE reserves by $3.6 million to $8.9 million. For rate stabilization purposes, the Board decided to recognize 1/3 of the $3.6 million or $1.2 million per year over the three-year period beginning with the 2017-18 fiscal year and ending with the 2019 – 20 fiscal year.

Funds Net Position Net Unrealized

Gains 2019 2018

Workers' Compensation 99,377,613$ 7,285,522$ 106,663,135$ 91,885,935$

Liability 96,215,869 5,418,660 101,634,529 92,385,950

Property 53,804,857 2,170,849 55,975,706 54,439,456

Coastal Storm 12,409,367 282,052 12,691,419 11,586,148

Reinsurance 84,067,568 2,936,489 87,004,057 65,296,966

Stability 23,768,093 896,041 24,664,134 22,332,931

Total 369,643,367$ 18,989,613$ 388,632,980$ 337,927,386$


40

Income Taxes The Workers’ Compensation and the Liability and Property programs obtained rulings from the Internal Revenue Service in February 1980 and July 1989, respectively, which recognize these programs as political subdivisions. Pursuant to these rulings, income is not taxable under Section 115(1) of the Internal Revenue Code. Accordingly, the accompanying financial statements do not include income tax expense.

Land and Capital Assets On February 28, 1995, the Pool purchased a 50% undivided interest in the land and building at 1821 Rutherford Lane in Austin, Texas as the site of the Pool’s headquarters. Expenditures for individual property items costing $30,000 or more are capitalized and carried at depreciated cost. Depreciation on the building is computed on a straight-line basis over its estimated useful life of 40 years. Land is reported as a non-depreciable asset.

Capital assets are shown on the Statements of Net Position at depreciated cost. Depreciation expense is computed on a straight-line basis over the estimated useful life of the assets, which is assumed to be seven years for software, five years for furniture, fixtures and equipment, and three years for vehicles and computers (see Note 5).

Other Liabilities Other liabilities include amounts payable to employees and various vendors for goods or services provided during the fund year. The balances at September 30 are detailed on the table to the right:

Unearned Contributions Unearned contributions represent amounts contributed by members that have not been earned. The balances at September 30 are detailed on the table to the right:

Deferred Compensation Plan The Pool offers its employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans available to all Pool employees permit employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or qualifying emergency. The Pool contributed $1,406,422 and $1,259,012 during the years ended September 30, 2019 and 2018, respectively to the 457 plans.

Allocations Investment income (without unrealized gains/(losses)) is allocated monthly to each fund on the basis of each fund’s beginning month’s pooled cash balance. Unrealized gains/(losses) are allocated monthly to each fund on the basis of each fund’s ending cash balance. Assets, liabilities, revenues and expenses directly attributable to a particular Fund are recorded directly to that Fund at 100%. General and Administrative (G&A) expenses, not directly attributable to a particular Fund are allocated among the Funds. 95% of these G&A expenses are allocated to the Workers’ Compensation, Liability and Property Funds at percentages of 50%, 25%, and 25%, respectively. The other 5% of G&A expenses are allocated to the Reinsurance, Coastal Storm and Stability Funds at 80%, 10%, and 10%, respectively.

Estimates The Pool’s annual financial report contains required estimates in accordance with GAAP. All such estimates are reviewed and approved by management. Required estimates are based on the most current and accurate information available at the time. Actual results, when known, could vary significantly from these estimates.

Subsequent Events The Pool has evaluated subsequent events for disclosure and recognition through December 13, 2019 the date on which these financial statements were available to be issued.

Other Liabilities 2019 2018

Excess Deposit Payables 1,397,025$ 677,025$

Other Payables 1,476,712 1,092,077

Vacation Wages Payables 2,168,398 1,939,726

Total 5,042,135$ 3,708,828$

Unearned Contributions 2019 2018

Workers' Compensation 946,875$ 1,228,660$

Liability 914,721 940,286

Property 2,709,250 2,511,040

Coastal Storm 16,064 15,952

Total 4,586,910$ 4,695,938$


41

NOTE 3 - CASH AND CASH EQUIVALENTS

The bank balances of the Pool’s cash and cash equivalents are $19,547,698 and $23,823,616 at September 30, 2019 and 2018, respectively. The difference between the bank balances and the recorded cash balances on the statement of net position is due to the outstanding checks net of deposits in transit of $168,209 and $696,427 at September 30, 2019 and 2018, respectively. The cash balances are $19,379,489 and $23,127,189 at September 30, 2019 and 2018, respectively.

Cash equivalents invested in TexPool, a Local Government Investment Pool (LGIP), amounted to $2,992,283 and $10,176,234 at September 30, 2019 and 2018, respectively. Per GASB Statement No. 79, Certain External Investment Pools and Pool Participants, TexPool utilizes amortized cost for valuation and financial reporting. The Pool also invests in money market funds that are recorded at fair value which approximates cost. There are no limitations or restrictions on withdrawals from TexPool or money market funds except for daily trading time deadlines.

NOTE 4 - INVESTMENTS

Investing is a primary ongoing operation of the Pool and it is the Pool’s policy to consider investment income as an important component of operating income. Under provisions of the Pool’s investment policy, and in accordance with regulations for investment of public funds in the State of Texas (i.e., the Public Funds Investment Act), the Pool may invest in the following types of investments:

1. Obligations of the United States or its agencies and instrumentalities, including the Federal Home LoanBanks;

2. Direct obligations of the State of Texas or its agencies and instrumentalities;

3. Mortgage backed securities directly issued by a federal agency or instrumentality except for collateralizedmortgage obligations.

4. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, orbacked by the full faith and credit of the State of Texas or the United States or their respective agencies andinstrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States;

5. Obligations of states, agencies, counties, cities, and other political subdivisions of any state having beenrated as to investment quality by a nationally recognized investment rating firm and having received a ratingof not less than A or its equivalent;

6. Certificates of deposit and share certificates authorized by section 2256.010 of the Public Funds InvestmentAct;

7. Repurchase agreements authorized by section 2256.011 of the Public Funds Investment Act;

8. No-load money market mutual funds authorized by section 2256.014 of the Public Funds Investment Act;

9. No-load mutual funds authorized by section 2256.014 of the Public Funds Investment Act;

10. Investment Pools authorized by sections 2256.016 and 2256.019 of the Public Funds Investment Act;

11. Interest-bearing banking deposits guaranteed or insured by the Federal Deposit Insurance Corporation orits successor.


42

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. In accordance with the Pool’s investment policy and State law, preservation and safety of principal is the primary objective of the Pool’s investment program and is addressed by purchasing the highest quality and creditworthy investments (see list of authorized investments above). As of September 30, 2019, and 2018, the percentage of the Pool’s cash equivalents invested in a government money market at Wells Fargo was 35.9% and 15.4%, respectively. The percentage of the Pool’s cash equivalents invested in TexPool as of September 30, 2019 and 2018 was 15.4% and 42.7%, respectively. The remainder of the cash equivalents were invested in a money market fund account at Frost Bank. Federal Deposit Insurance Corporation (FDIC) insures amounts on deposit up to the limits as prescribed by law. For funds in excess of the FDIC insured amount, the Pool requires the depository to place securities as collateral in accordance with state law and the Pool’s investment policy. Cash equivalents held in government money market funds at Wells Fargo and Frost Bank and in TexPool are not FDIC insured. The government money market funds are registered and regulated by the Securities and Exchange Commission (SEC) and the Texas State Comptroller of Public Accounts oversees TexPool. The Pool does not believe it’s exposed to significant credit risk.

Neither the Pool’s investment policy nor state law places a limit on the amount the Pool may invest in a single authorized issuer. The following presents the ratings for each investment type at September 30, 2019:

Investment Type/Issuer Fair Value

S&P

Rating

Moody's

Rating

U.S. Treasury 5,646,792$ AA+ Aaa

Government Agencies

FNMA * 999,790 AA+ Aaa

FHLB 15,905,690 AA+ Aaa

FFCB 8,996,850 AA+ Aaa

Sub-Total 25,902,330$

Municipal Bonds

Muni Bonds 50,675,194 AAA** Aaa

Muni Bonds 7,125,983 AAA** Aa

Muni Bonds 13,244,371 AAA** -

Muni Bonds 5,216,750 AA** Aaa

Muni Bonds 31,830,219 AA** Aa

Muni Bonds - AA** A

Muni Bonds 13,158,290 AA** -

Muni Bonds 8,186,593 A** A

Muni Bonds 849,977 - Aaa

Muni Bonds 1,051,201 - Aa

Muni Bonds - - A

Sub-Total 131,338,578$

Mortgage Backed Securities

FNMA* 416,532,289 AA+ Aaa

FHLMC* 95,505,544 AA+ Aaa

GNMA 14,831,749 AA+ Aaa

Sub-Total 526,869,582$

Total Investments 689,757,282$

*Issuer accounts for 5% or more of total investments.

AAA** - Refers to those rated as AAA- and AAA.

AA** - Refers to those rated as AA-, AA and AA+

A* - Refers to those rated as A-, A and A+.


43

The Pool’s gross unrealized gains and losses on investments were as follows:

The Pool categorizes its investments fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Pool had the following recurring fair value measurements at September 30, 2019 and 2018, respectively:

Investments by fair value level 09/30/18

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Unobservable

Inputs

(Level 3)

U.S. Treasury Securities 5,902,847$ 5,902,847$ -$ -$

Total U.S. Treasury Securities 5,902,847 5,902,847 - -

Government Agencies Securities

FNMA 989,430 - 989,430 -

FHLB 14,597,820 - 14,597,820 -

FFCB 8,348,640 - 8,348,640 -

Municipal Bonds 132,055,018 - 132,055,018 -

Mortgage Backed 457,269,379 - 457,269,379 -

Other 169,017 - 169,017 -

Total Government Agencies Securities 613,429,304 - 613,429,304 -

Total investments by fair value level 619,332,151$ 5,902,847$ 613,429,304$ -$

Investments by fair value level 09/30/19

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Unobservable

Inputs

(Level 3)

U.S. Treasury Securities 5,646,792$ 5,646,792$ -$ -$

Total U.S. Treasury Securities 5,646,792 5,646,792 - -

Government Agencies Securities

FNMA 999,790 - 999,790 -

FHLB 15,905,690 - 15,905,690 -

FFCB 8,996,850 - 8,996,850 -

Municipal Bonds 131,338,578 - 131,338,578 -

Mortgage Backed 526,869,582 - 526,869,582 -

Total Government Agencies Securities 684,110,490 - 684,110,490 -

Total investments by fair value level 689,757,282$ 5,646,792$ 684,110,490$ -$

September 30, 2019

Amortized Cost

Gross Unrealized

Gains

Gross Unrealized

Losses

Total Gross

Unrealized

Gain/(Loss) Fair Value

U.S. Treasury Obligations 4,962,300$ 684,492$ -$ 684,492$ 5,646,792$

Municipal Bonds 124,346,261 7,001,388 (9,071) 6,992,317 131,338,578

U.S. Agency Obligations 25,995,798 34,653 (128,121) (93,468) 25,902,330

U.S. Agency MBS 515,463,310 12,153,474 (747,202) 11,406,272 526,869,582

Total Investments 670,767,669$ 19,874,007$ (884,394)$ 18,989,613$ 689,757,282$

September 30, 2018

Amortized Cost

Gross Unrealized

Gains

Gross Unrealized

Losses

Total Gross

Unrealized

Gain/(Loss) Fair Value

U.S. Treasury Obligations 6,097,500$ 99,175$ (293,828)$ (194,653)$ 5,902,847$

Municipal Bonds 133,294,068 1,839,306 (3,078,356) (1,239,050) 132,055,018

U.S. Agency Obligations 26,161,475 504 (2,057,072) (2,056,568) 24,104,907

U.S. Agency MBS 472,523,885 1,578,590 (16,833,096) (15,254,506) 457,269,379

Total Investments 638,076,928$ 3,517,575$ (22,262,352)$ (18,744,777)$ 619,332,151$


44

The amortized cost and estimated fair value of long-term and short-term fixed income investments at September 30, 2019 and 2018, by expected maturities, are shown below. Actual maturities will vary from expected maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Investment income included in the Statement of Operations and Changes in Net Position for the years ended September 30 are detailed to the right.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Pool’s investment policy addresses interest rate risk by establishing a custom benchmark based on the intent and ability to buy investments and hold them until they mature. However, the Pool may sell securities as a prudent measure based on market conditions. To guide the buying and holding of investments, the Pool utilizes a custom benchmark that takes into account expected payments of liabilities and the Pool’s objectives for utilizing Members’ Equity. The Pool’s custom benchmark is the following:

70% weighting of the Barclays Capital MBS Fixed Rate Index 20% weighting of the Barclays Capital Intermediate Taxable Municipal Index 10% weighting of the Barclays Capital Intermediate Government Index

The estimated effective duration is used to assess interest rate risk by estimating the sensitivity of fixed income securities to interest rate changes. The effective duration estimates the percentage change in the fair value of an investment (or an investment portfolio) for a one percent change in interest rates. It makes assumptions regarding the most likely timing and amounts of variable cash flows for investments that are highly sensitive to interest rate changes, such as mortgage-backed securities, callable bonds, and variable-rate debt.

Investment Income 2019 2018

Investment Income (interest income) 25,409,586$ 24,277,008$

Net unrealized gains 37,734,381$ (25,765,066)$

Amortization of discounts (premiums) (3,734,981) (4,095,128)

Net realized gains 339,592 726,020

Investment Income (change in fair value) 34,338,992$ (29,134,174)$

Estimated

As of September 30, 2019 Fair Value

Effective

Duration

U.S. Treasury 5,646,792$ 12.42

Government Agencies 25,902,330 1.68

Municipal Bonds 131,338,578 4.94

Mortgage Backed Securities 526,869,582 3.40

Total Investments 689,757,282$ 3.67

The estimated effective duration of the custom benchmark at September 30, 2018 was 5.68.

September 30, 2019 September 30, 2018

Investment Maturity Amortized Cost Fair Value Amortized Cost Fair Value

Due in one year or less 12,875,790$ 12,900,507$ 7,327,039$ 7,322,708$

Due after one year through five years 33,955,581 34,422,093 41,955,783 41,248,119

Due after five years through ten years 48,900,609 50,465,260 46,223,943 43,716,072

Due after ten years through twenty years 59,572,379 65,099,840 70,046,278 69,775,873

Mortgage-Backed Securities due after one year 515,463,310 526,869,582 472,523,885 457,269,379

Total 670,767,669$ 689,757,282$ 638,076,928$ 619,332,151$


45

NOTE 5 – CAPITAL ASSETS

Capital assets were comprised of the following at September 30:

NOTE 6 - OTHER ASSETS

At September 30, the balance of other assets consisted of the following:

The TML deposit required by contract is equal to one month’s average bill and is based upon an average of six months of billings. The deposit with National League of Cities Mutual Insurance Company (NLC-MIC) is based upon the level of reinsurance purchased from them. At September 30, 2019, the Pool’s equity interest in NLC-MIC was $4,002,966 which is $3,441,899 more than the Pool’s recorded cost basis.

Other Assets

Workers'

Compensation Liability Property 2019 2018

Deposit with TML 201,798$ 100,899$ 100,899$ 403,596$ 403,596$

Deposit with NLC-MIC 39,518 227,973 293,576 561,067 561,067

Deposit with WC Alliance 56,864 - - 56,864 56,864

Prepaid Expenses 280,978 140,489 140,489 561,956 486,454

Rent Deposits 10,377 5,188 5,188 20,753 17,698

Total 589,535$ 474,549$ 540,152$ 1,604,236$ 1,525,679$

Net Capital Assets

Fund Capital Assets

Accumulated

Depreciation 2019 2018

Workers' Compensation 11,945,745$ (5,559,506)$ 6,386,239$ 5,299,940$

Liability 5,972,873 (2,779,753) 3,193,120$ 2,649,970

Property 5,972,873 (2,779,753) 3,193,120$ 2,649,970

Reinsurance 1,005,958 (468,169) 537,789$ 446,311

Coastal Storm 125,744 (58,521) 67,223$ 55,789

Stability 125,744 (58,521) 67,223$ 55,789

Total 25,148,937$ (11,704,223)$ 13,444,714$ 11,157,769$

Capital Assets

Ending Balance

@ 10/1/18

Purchases & Capitalized

Expenses

Sales and Other

Dispositions

Ending Balance

@ 9/30/19

Vehicles over $30,000 97,748$ 97,748$

Computers 521,822 521,822

Furniture & Fixtures 965,177 1,057 (1,259) 964,975

Software 12,602,393 3,547,540 16,149,933

Building & Property Improv. 6,639,537 270,586 (10,361) 6,899,762

Land 514,697 514,697

Total 21,341,374$ 3,819,183$ (11,620)$ 25,148,937$

Accumulated Depreciation

Ending Balance

@ 10/1/18 Depreciation Expense

Sales and Other

Dispositions

Ending Balance

@ 9/30/19

Vehicles over $30,000 41,597$ 32,612$ 74,209$

Computers 471,278 36,846 508,124

Furniture & Fixtures 792,115 63,247 202 855,564

Software 4,436,375 1,246,355 5,682,730

Building & Property Improv. 4,442,240 137,948 3,408 4,583,596

Total 10,183,605$ 1,517,008$ 3,610$ 11,704,223$


--

-

--

-

-

--

-

46

NOTE 7 – CONTRACT SERVICE FEES

The Pool utilizes several contractors for underwriting, reinsurance brokerage and data processing services. Included in the Statements of Operations were the following contract service fees for the fiscal years ending September 30, 2019 and 2018:

NOTE 8 - REINSURANCE

For fiscal years ending September 30, 2019 and 2018, the following Funds carry excess reinsurance as outlined below:

• Workers’ Compensation Fund− Carries excess reinsurance up to statutory limits over a retention limit of $3 million.− Retains 40% of losses exceeding the Fund’s retention of $3 million.− The Reinsurance Fund assumes a 60% quota share of losses in excess of $3 million up to statutory

limits.

• Liability Fund− Carries excess reinsurance over a retention of $3 million.− Retains 27.5% of losses exceeding the Fund’s retention of $3 million.− Retains a 25% quota share of the first $50,000 of losses related to Cyber & Data Breach coverage.− Retains 100% of Cyber & Data Breach losses exceeding $50,000 up to policy limits.− The Reinsurance Fund assumes a 72.5% quota share of losses in excess of $3 million.

• Property Fund− Carries a specific retention limit of $4 million per occurrence and retains 50% of the $6 million excess

of $4 million layer.▪ Through April 30, 2019, the Reinsurance Fund assumes the following:

• a 50% quota share for the $6 million excess of $4 million layer,• a 30% quota share of the $15 million excess of $10 million layer,• a 20% quota share of the $25 million excess of $25 million layer,• a 25% quota share of the $50 million excess of $50 million layer,• a 25% quota share of the $50 million excess of $100 million layer,• a 25% quota share of the $50 million excess of $150 million layer, and• a 50% quota share of the $50 million excess of $200 million layer.

− Beginning on May 1, 2019, the Property Fund carries a specific retention limit of $4 million peroccurrence and retains 50% of both the $6 million excess of $4 million and $50 million excess of $250million layers.

▪ The Reinsurance Fund assumes the following:• a 50% quota share for the $6 million excess of $4 million layer,• a 30% quota share of the $15 million excess of $10 million layer,• a 20% quota share of the $25 million excess of $25 million layer,• a 20% quota share of the $50 million excess of $50 million layer,• a 20% quota share of the $50 million excess of $100 million layer,• a 15% quota share of the $50 million excess of $150 million layer,• a 20% quota share of the $50 million excess of $200 million layer, and• a 50% quota share of the $50 million excess of the $250 million layer.

Payments to reinsurers are recognized over the term of the contracts. Reserves for losses and loss adjustment expenses are stated after deduction for reinsured estimated losses; however, the Pool is liable for these amounts in the event the reinsurers are unable to pay their portion of the claims.

Contract Service Fees 2019 2018

Workers' Compensation 1,048,430$ 762,856$

Liability 344,131 567,060

Property 291,370 2,220,533

Coastal Storm 5,020 1,047

Reinsurance 40,151 8,374

Stability 5,019 1,047

Total 1,734,121$ 3,560,917$


47

The amounts anticipated to be recovered from outside reinsurance on case reserves and IBNR at September 30, 2019 and 2018 were as follows:

The gross liabilities shown above are net of discounting.

Approximately 99.8% of the 2019 recoverable balance represents reserves from reinsurers rated “Superior”, “Excellent”, “Good” or “Strong” by A.M. Best Company or Standard and Poor’s. The Pool is a participating member of NLC-MIC (not rated), which provides excess insurance coverage accounting for .2% of the reinsurance recoverable.

NOTE 9 - RELATED PARTY TRANSACTIONS

The Pool has an administrative services contract with TML for certain management and licensing fees related to the use of the organization’s name. For fiscal years 2019 and 2018, these fees totaled $893,000 and $889,000, respectively.

September 30, 2019 September 30, 2018

Gross Ceded Net Gross Ceded Net

Workers' Compensation Case 116,380,005$ (19,775,163)$ 96,604,842 114,882,621$ (22,235,613)$ 92,647,008

IBNR 67,431,000 (531,000) 66,900,000 63,255,000 (355,000) 62,900,000

Total 183,811,005 (20,306,163) 163,504,842 178,137,621 (22,590,613) 155,547,008

Liability Case 76,356,145 - 76,356,145 69,014,874 - 69,014,874

IBNR 25,600,000 - 25,600,000 27,400,000 - 27,400,000

Total 101,956,145 - 101,956,145 96,414,874 - 96,414,874

Property Case 55,775,943 (28,645,428) 27,130,515 90,330,657 (73,663,734) 16,666,923

IBNR 6,425,000 (4,000,000) 2,425,000 5,435,000 (6,310,000) (875,000)

Total 62,200,943 (32,645,428) 29,555,515 95,765,657 (79,973,734) 15,791,923

Coastal Storm Case 5,000 - 5,000 - - -

IBNR - - - - - -

Total 5,000 - 5,000 - - -

Reinsurance Case 18,977,104 - 18,977,104 34,551,739 - 34,551,739

IBNR 4,750,000 4,750,000 6,450,000 6,450,000

Total 23,727,104 - 23,727,104 41,001,739 - 41,001,739

Stability ULAE 8,200,000 - 8,200,000 6,500,000 - 6,500,000

Eliminating Case (18,977,104) 18,977,104 - (34,551,739) 34,551,739 -

IBNR (4,750,000) 4,750,000 - (6,450,000) 6,450,000 -

Total (23,727,104) 23,727,104 - (41,001,739) 41,001,739 -

Total Case 256,717,093 (29,443,487) 227,273,606 280,728,152 (61,347,608) 219,380,544

IBNR 99,456,000 219,000 99,675,000 96,090,000 (215,000) 95,875,000

Total 356,173,093$ (29,224,487)$ 326,948,606$ 376,818,152$ (61,562,608)$ 315,255,544$


48

The Pool maintains a deposit with TML, and at September 30, 2019 and 2018, the amount of this deposit was $403,596. The Pool has an arrangement to invest funds owned by TML. The amount of these funds, which was recorded as both an investment asset and a liability on the financial statements, is shown in the table to the right.

The Pool purchased 50% of the land and building at 1821 Rutherford Lane from the TML Health Benefits Pool in February 1995. The net purchase price paid by the Pool was $2.184 million. The common areas of the building are managed by a governing committee.

The Pool invests funds in TexPool. The same municipalities that the Pool insures, may also be members in TexPool investments as further disclosed in Note 4.

The Executive Director serves on the NLC-MIC Board of Directors.

The Pool is a member of the Political Subdivision Workers’ Compensation Alliance (Alliance), which is an intergovernmental arrangement to develop and maintain network medical services for workers’ compensation providers within the State of Texas. In January 2019, the Pool entered into an Interlocal Agreement with the Alliance to provide administrative and operational services for the Alliance for an annual fee of $790,000.

NOTE 10 - DEFINED BENEFIT PENSION PLAN

Plan Description The Pool provides pension benefits for all of its eligible employees through a non-traditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple-employer public employee retirement system. The plan provisions adopted by the Pool are within the options available in the governing state statutes of TMRS.

TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for TMRS. The report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by TMRS. This report may be obtained from the TMRS website at www.tmrs.com. Questions concerning the Pool’s retirement provisions should be directed to the Chief Financial Officer at the Texas Municipal League Intergovernmental Risk Pool at (512) 491-2300.

Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the Pool, within the options available in the state statutes governing TMRS. The plan provisions adopted by the Pool’s Board of Trustees as of September 30, 2019 and 2018 are detailed to the right:

Members can retire at certain ages, based on the years of service with the Pool and prior service with participating local governments. The Service Retirement Eligibilities for the Pool are: 10 years/age 60, 25 years/any age.

In addition to the annually repeating updated service credit, the Pool elected to provide an annually repeating annuity adjustment at 70% of the increase in the Consumer Price Index and supplemental death benefits to both active and retired employees. In 2016, the Pool added the transfer service option to its plan’s provisions.

Related Party Transactions 2019 2018

Beginning TML Investments 7,079,978$ 7,179,143$

Investment Income 208,499 200,835

Additional (Withdrawals) Deposits - (300,000)

Total 7,288,477$ 7,079,978$


49

http://www.tmrs.com/

Employees covered by benefit terms At the December 31, 2018 and 2017 valuation and measurement dates, the following numbers of employees were covered by the benefit terms:

Contributions Under the state law governing TMRS, the contribution rate for the Pool is determined annually by the TMRS actuary, using the Entry Age Normal (EAN) actuarial cost method. This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of the Pool’s payroll from year to year. The normal cost contribution rate finances the portion of the Pool’s projected benefit allocated annually; the prior service contribution rate amortizes the unfunded actuarial liability over the applicable period for the Pool. Both the normal cost and prior service contribution rates include recognition of the projected impact of annually repeating benefits, such as Updated Service Credits and annuity increases.

The Pool contributes to the TMRS Plan at an actuarially determined rate. Both the employees and the Pool make contributions monthly. The contribution rates for the Pool were 10.39% and 11.39% in calendar years 2019 and 2018, respectively. The Pool’s contributions to TMRS for the year ended September 30, 2019, were $2,711,241. For the year ended September 30, 2018, the contributions were $2,818,177.

Net Pension Asset (Liability) The Pool’s Net Pension Asset (Liability) was measured as of December 31, and the Total Pension Liability used to calculate the Net Pension Asset (Liability) was determined by an actuarial valuation as of that date.

Actuarial assumptions: The Total Pension Asset (Liability) in the December 31, 2018 and 2017 actuarial valuation was determined using the following actuarial assumptions:

Notes Actuarially determined contribution rates are calculated as of December 31 and

become effective in January, 13 months later.

Schedule of Contributions for Plan Years 2018 and 2017

Methods and Assumptions used to Determine Contribution Rates:

Actuarial Cost Method Entry Age Normal

Amortization Method Level Percentage of Payroll, Closed

Remaining Amortization Period 26 years

Asset Valuation Method 10 Year Smoothed Market; 15% soft corridor

Inflation 2.5%

Salary Increases 3.50% to 10.5% including inflation

Investment Rate of Return 6.75%

Retirement Age Experience-based table of rates that are specific to the Pool's plan of benefits.

Last updated for the 2015 valuation pursuant to an experience study of the

period 2010-2014.

Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates

multiplied by 109% and female rates multiplied by 103% and projected on a fully

generational basis with scale BB.

Other Information:

Notes There were no benefit changes during the year.

2018 Plan Valuation Methods and Assumptions


50

Actuarial assumptions used in the December 31, 2018, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period December 31, 2010 to December 31, 2014. Health post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of real rates of return for each major asset class are summarized in the table to the right.

Discount Rate The discount rate used to measure the Total Pension Asset (Liability) was 6.75% at December 31, 2018. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability.

The following presents the net pension asset (liability) of the Pool, as well as what the Pool’s net pension asset (liability) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:

Methods and Assumptions used to Determine Contribution Rates:

Actuarial Cost Method Entry Age Normal

Amortization Method Level Percentage of Payroll, Closed

Remaining Amortization Period 27 years

Asset Valuation Method 10 Year Smoothed Market; 15% soft corridor

Inflation 2.5%


Investment Rate of Return 6.75%

Retirement Age Experience-based table of rates that are specific to the Pool's plan of benefits.

Last updated for the 2015 valuation pursuant to an experience study of the

period 2010-2014.

Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates



Other Information:

Notes There were no benefit changes during the year.

2017 Plan Valuation Methods and Assumptions

Long-term Expected Real

Asset Class Target Allocation Rate of Return (Arithmetic)

Domestic Equity 17.5% 4.30%

International Equity 17.5% 6.10%

Core Fixed Income 10.0% 1.00%

Non-Core Fixed Income 20.0% 3.39%

Real Return 10.0% 3.78%

Real Estate 10.0% 4.44%

Absolute Return 10.0% 3.56%

Private Equity 5.0% 7.75%

Total 100.0%


51

Pension Expense and Deferred Outflows and Inflows of Resources Related to Pensions For the year ended September 30, 2019, the Pool recognized pension expense of $5,595,357, which was the same amount of pension expense for the Pool reported by TMRS (calendar year basis).

1% Decrease in

Discount Rate (5.75%)

Discount Rate

(6.75%)

1% Increase in Discount Rate

(7.75%)

Pool's net pension (asset) liability 30,165,390$ 8,776,711$ (8,945,533)$

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

Schedule of Pension Expense

At December 31, 2018

1. Total Service Cost 4,263,766$

2. Interest (on the Total Pension Liability) 9,726,192

3. Current Period Benefit Changes 0

4. Employee Contribution (Reduction of Expenses) (1,742,345)

5. Projected Earnings on Plan Investments (Reduction of Expenses) (10,026,380)

6. Administrative Expense 85,993

7. Other Changes in Fiduciary Net Position 4,493

8. Recognition of Current Year Outflows (Inflows) of Resources - Liabilities (29,450)

8. Recognition of Current Year Outflows (Inflows) of Resources - Assets 2,895,972

9. Amortization of Prior Year Outflows (Inflows) of Resources - Liabilities 445,050

10. Amortization of Prior Year Outflows (Inflows) of Resources - Assets (27,934)

Total 5,595,357$

Schedule of Changes in Net Pension Liability and Related Ratios

December 31 Measurement Date

Total pension liability 2018 2017

1. Service Cost 4,263,766$ 4,173,329$

2. Interest (on the Total Pension Liability) 9,726,192 9,012,508

3. Changes of benefit terms - -

4. Difference between expected and actual experience (170,223) 296,152

5. Changes of assumptions - -

6. Benefit payments, including refunds of employee contributions (3,146,837) (2,761,390)

7. Net change in total pension liability 10,672,898 10,720,599$

8. Total pension liability - beginning 143,533,262 132,812,663

9. Total pension liability - ending 154,206,160$ 143,533,262$

Plan fiduciary net position

1. Contributions - employer 2,838,949$ 2,754,077$

2. Contributions - employee 1,742,345 1,692,619

3. Net investment income (4,453,479) 17,900,740

4. Benefit payments, including refunds of employee contributions (3,146,837) (2,761,390)

5. Administrative Expenses (85,993) (92,692)

6. Other (4,493) (4,698)

7. Net change in plan fiduciary net position (3,109,508) 19,488,656$

8. Plan fiduciary net position - beginning 148,538,957 129,050,301

9. Plan fiduciary net position - ending 145,429,449$ 148,538,957$

Net pension (asset) liability [A.9 - B.9] 8,776,711$ (5,005,695)$

94.31% 103.49%

Covered-employee payroll 24,890,637$ 24,179,194$

Net pension (asset) liability as a % of covered employee payroll [C / E] 35.26% -20.70%

Plan fiduciary net position as a % of the total pension liability [B.9 / A.9]


52

For the year ended September 30, 2018, the Pool recognized pension expense of $3,296,829, which was the same amount of pension expense for the Pool reported by TMRS (calendar year basis).

At September 30, 2019, the Pool reported deferred outflows and inflows of resources related to pensions from the following sources (calendar year basis):

Schedule of Pension Expense

At December 31, 2017

1. Total Service Cost 4,173,329$

2. Interest (on the Total Pension Liability) 9,012,508

3. Current Period Benefit Changes 0

4. Employee Contribution (Reduction of Expenses) (1,692,619)

5. Projected Earnings on Plan Investments (Reduction of Expenses) (8,710,895)

6. Administrative Expense 92,692

7. Other Changes in Fiduciary Net Position 4,698

8. Recognition of Current Year Outflows (Inflows) of Resources - Liabilities 49,607

8. Recognition of Current Year Outflows (Inflows) of Resources - Assets (1,837,969)

9. Amortization of Prior Year Outflows (Inflows) of Resources - Liabilities 395,443

10. Amortization of Prior Year Outflows (Inflows) of Resources - Assets 1,810,035

Total 3,296,829$

Total (Inflow) or Outflow of

Resources

2018 Recognized in

current pension expense

Deferred (Inflow)/Outflow

in future expense

Prior Years'*

Difference between expected and actual experience 1,152,553$ 312,295$ 840,258$

Difference in assumptions changes 422,162 132,755 289,407

Difference between projected and actual earnings on

pension plan investments (3,989,599) (27,934) (3,961,665)

2018 Plan Year

Difference between expected and actual

experience (170,223) (29,450) (140,773)

Difference in assumptions changes - - -

Difference between projected and actual earnings on

pension plan investments 14,479,857 2,895,972 11,583,885

Deferred Pension Items 11,894,750 3,283,638 8,611,112

Contributions made subsequent to measurement

date 1,998,832 1,998,832

Total 13,893,582$ 3,283,638$ 10,609,944$

* Prior Years' is composed of Plan Years 2014 - 2017.

Schedule of Outflows and Inflows - Current and Future Expenses


53

At September 30, 2018, the Pool reported deferred outflows and inflows of resources related to pensions from the following sources (calendar year basis):

The schedule below reflects the deferred outflows and inflows of resources at September 30, 2019 that will be amortized in future pension expense.

Pension Charges (Credits) The Pool recorded Pension Expense reconciling items as Pension Charges (Credits) as follows:

Total (Inflow) or Outflow

of Resources

2017 Recognized in

current pension expense

Deferred (Inflow)/Outflow

in future expense

Prior Years'*Difference between expected and actual experience 1,168,696$ 262,688$ 906,008$

Difference in assumptions changes 554,917 132,755 422,162

Difference between projected and actual earnings

on pension plan investments 5,172,312 1,810,035 3,362,277

2017 Plan Year


experience 296,152 49,607 246,545

Difference in assumptions changes - - -

Difference between projected and actual earnings

on pension plan investments (9,189,845) (1,837,969) (7,351,876)

Deferred Pension Items (1,997,768) 417,116 (2,414,884)

Contributions made subsequent to measurement

date 2,129,414 2,129,414

Total 131,646$ 417,116$ (285,470)$

* Prior Years' is composed of Plan Years 2014 - 2016.

Schedule of Outflows and Inflows - Current and Future Expenses

Pension Charges (Credits) (2018)

Capitalized TMRS Contributions (98,649)$

Changes in Deferred Contributions -

Differences Between Contributions per the Pool and TMRS (92)

Total Pension Charges (98,741)$

Pension Charges (Credits) (2017)

Capitalized TMRS Contributions (142,532)$

Changes in Deferred Contributions (13,365)

Differences Between Contributions per the Pool and TMRS (53)

Total Pension Charges (155,950)$

Schedule of Outflows and Inflows - Future Pension Expense

Year

Net deferred

outflows(inflows) of

resources*

2019 3,028,873$

2020 1,456,518

2021 1,229,890

2022 2,918,806

2023 (22,975)

Thereafter -

*Total 8,611,112$

*Excludes contributions of $1,998,832 remitted to TMRS

subsequent to the December 31, 2018 measurement date.


54

As a result of Pension Charges (Credits), the following is the Pension Expense line item amount as reported on the financial statements:

Restricted Net Position The Pool restricted net position for pension-related assets (liabilities) due to the expected volatility in changes to the fair value of pension investments and outflow (inflows) of pension resources:

NOTE 11 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)

Plan Description The Pool provides all of its eligible employees a defined benefit group-term life insurance through the TMRS Supplemental Death Benefits Fund (SDBF). The SDBF covers both active and retiree benefits with no segregation of assets, and therefore doesn’t meet the definition of a trust under GASB Statement No. 75 Accounting and Financial Reporting of Postemployment Benefits Other Than Pensions (i.e., no assets are accumulated for other postemployment benefits or OPEB), and as such, the SDBF is considered to be an unfunded OPEB plan. The retiree portion of the SDBF is not considered a cost sharing plan and is instead considered a single-employer, defined benefit OPEB plan.

The Pool’s contributions to the TMRS SDBF for the fiscal years ended September 30, 2019 and 2018 were $52,842 and $52,005, respectively, which equaled the required contributions each year.

TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for TMRS. The report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by TMRS. This report may be obtained from the TMRS website at www.tmrs.com. Questions concerning the Pool’s OPEB provisions should be directed to the Chief Financial Officer at the Texas Municipal League Intergovernmental Risk Pool at (512) 491-2300.

Benefits Provided Benefit provisions are adopted by the governing body of the Pool, within the options available in the state statutes governing TMRS. The death benefits for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death). The death benefits for retirees is considered a postemployment benefit (OPEB) and is a fixed amount of $7,500 per employee. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded OPEB plan (i.e., no assets are accumulated).

Pension Expense as Reported on the Financial Statements

2018 2017

Pension Expense 5,595,357$ 3,296,829$

Pension Charges (Credits) (98,741) (155,950)

Reported Pension Expense 5,496,616$ 3,140,879$

Net Pension Asset -$

Deferred Outflow of Pension Resources (Future Expenses) 8,611,114

Deferred Outflow of Pension Resources (Contributions) 1,998,830

Restricted Net Position @ September 30, 2018 10,609,944$

Net Pension Asset 5,005,695$

Deferred Outflow of Pension Resources (Future Expenses) (2,414,884)

Deferred Outflow of Pension Resources (Contributions) 2,129,414

Restricted Net Position @ September 30, 2018 4,720,225$

Restricted Net Position @ September 30, 2019

Restricted Net Position @ September 30, 2018


55

Employees covered by benefit terms At the December 31, 2018 and 2017 valuation and measurement dates, the following numbers of employees were covered by the benefit terms:

Contributions The Pool contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy of the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance. The Pool’s contributions to TMRS for the plan year ended December 31, 2018 and 2017 for the retiree-only portion (OPEB) were $2,489 and $2,418, respectively.

Total OPEB Liability

The Pool’s Total OPEB Liability at September 30, 2019 was $668,120 as measured as of December 31, 2018 (date of the actuarial valuation). The Total OPEB Liability at September 30, 2018 was $652,046 (December 31, 2017 measurement date). For 2017-18, the Pool recorded a prior period adjustment as of October 1, 2017 reflecting the cumulative effect of adopting GASB 75 of $555,284, which represents the Total OPEB Liability as of the December 31, 2016 measurement date.

Actuarial Assumptions: The actuarial assumptions used in the December 31, 2018 and 2017 valuations were based on the results of an actuarial experience study for the period December 31, 2010 to December 31, 2014. The Total OPEB Liability was determined using the following actuarial assumptions:

Plan Valuation Year

2018 2017

Inactive employees currently receiving benefits 70 65

Inactive employees entitled to but not yet receiving benefits 23 21

Active employees 245 245

Total 338 331

Plan/Calendar Year

Total SDB

Contribution Rate

Retiree Portion of SDB

Contribution Rate

2017 0.21% 0.01%

2018 0.20% 0.01%

2019 0.21% 0.01%

Schedule of Contributions (Retiree-only portion of the rate, for OPEB)


56

Discount Rate The discount rate used to measure the Total OPEB Liability was 3.71% at December 31, 2018. The discount rate was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2018.

The following presents the Total OPEB Liability of the Pool, as well as what the Pool’s Total OPEB Liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.71%) or 1-percentage-point higher (4.71%) than the current rate:

Inflation 2.5%


Discount Rate 3.71%

Retirees' share of benefit-related costs $0

Administrative Expenses All administrative expenses are paid through the Pension Trust and accounted

for under reporting requirements under GASB Statement No. 68.

Mortality rates - service retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates



Mortality rates - disabled retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates

multiplied by 109% and female rates multiplied by 103% with a 3 year set-forward

for both males and females. The rates are projected on a fully generational basis

with scale BB to account for future mortality improvements subject to the 3% floor.

Inflation 2.5%


Discount Rate 3.31%

Retirees' share of benefit-related costs $0

Administrative Expenses All administrative expenses are paid through the Pension Trust and accounted

for under reporting requirements under GASB Statement No. 68.

Mortality rates - service retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates



Mortality rates - disabled retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates

multiplied by 109% and female rates multiplied by 103% with a 3 year set-forward

for both males and females. The rates are projected on a fully generational basis

with scale BB to account for future mortality improvements subject to the 3% floor.

2018 Summary of Actuarial Assumptions

2017 Summary of Actuarial Assumptions

1% Decrease in Discount

Rate (2.71%)

Current Discount Rate

(3.71%)

1% Increase in Discount

Rate (4.71%)

Total OPEB Liability 805,263$ 668,120$ 562,216$

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate


57

Changes in the Total OPEB Liability

OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the years ended September 30, 2019 and 2018, the Pool recognized OPEB expenses of $53,370 and $51,987, respectively, which were the same amounts reported by TMRS (calendar year basis).

Schedule of OPEB Expense

At December 31

2018 2017

Service Cost 27,380$ 21,761$

Interest on Total OPEB Liability 21,995 21,355

Changes in benefit terms - -

Employer administrative costs - -

Recognition of deferred outflows/inflows of resources:

Difference between expected and actual experience 3,130 -

Changes in assumptions or other inputs 865 8,871

Total OPEB Expense 53,370$ 51,987$

Schedule of Changes in Total OPEB Liability


Changes in the Total OPEB Liability 2018 2017

Total OPEB Liability - beginning of year 652,046$ 555,284$

Changes for the year:

Service Cost 27,380 21,761

Interest on Total OPEB Liability 21,995 21,355

Changes in benefit terms - -

Differences between expected and actual experience 19,783 -

Changes in assumptions or other inputs (50,595) 56,064

Benefit payments (2,489) (2,418)

Net Changes 16,074 96,762

Total OPEB Liability - end of year 668,120$ 652,046$

Covered Payroll 24,890,637$ 24,179,194$

Total OPEB Liability as a Percentage of Covered Payroll 2.68% 2.70%


58

At September 30, 2019, the Pool reported deferred outflows and inflows of resources related to the OPEB from the following sources:

At September 30, 2018, the Pool reported deferred outflows and inflows of resources related to the OPEB from the following sources:

Total (Inflow)

or Outflow of

Resources

2017

Recognized in

current OPEB

expense

Deferred

(Inflow)/Outflow

in future expense

Due to Liabilities


experience -$ -$ -$

Change in assumptions 56,064 8,871 47,193

Contributions made subsequent to measurement date 1,871

Total 56,064$ 8,871$ 49,064$

Schedule of Deferred Outflows and Inflows - Current and Future Expenses

Total (Inflow)

or Outflow of

Resources

2018

Recognized in

current OPEB

expense

Deferred

(Inflow)/Outflow

in future expense

Due to Liabilities

Prior Years


experience {actuarial (gains) or losses} -$ -$ -$

Change in assumptions {actuarial (gains) or losses} 47,193 8,871 38,322

2018 Plan Year


experience {actuarial (gains) or losses} 19,783$ 3,130$ 16,653$

Change in assumptions {actuarial (gains) or losses} (50,595) (8,006) (42,589)

Contributions made subsequent to measurement date 1,926

16,381$ 3,995$ 14,312$

Schedule of Deferred Outflows and Inflows - Current and Future Expenses


59

The schedule below reflects the deferred outflows and inflows of resources at September 30, 2019 that will be amortized in future pension expense.

NOTE 12 - CONTINGENCIES

In the normal course of operations, the Pool is involved in litigation related to certain claims. In the opinion of management, the disposition of these matters will not have a materially adverse effect on the Pool’s financial position.

Schedule of Outflows and Inflows - Future OPEB Expenses

Year

Net deferred

outflows(inflows)

of resources*

2019 3,995$

2020 3,995

2021 3,995

2022 3,995

2023 (2,038)

Thereafter (1,556)

Total 12,386$


60

NO

TE

13

– R

EC

ON

CIL

IAT

ION

OF

CL

AIM

RE

SE

RV

ES

BY

CO

NT

RA

CT

TY

PE

Tex

as M

un

icip

al L

eagu

e In

terg

ov

ern

men

tal

Ris

k P

oo

l

61

REQUIRED SUPPLEMENTARY INFORMATION

September 30, 2019

TEN-YEAR CLAIMS DEVELOPMENT INFORMATION

The following tables illustrate how earned revenue (net of reinsurance) and investment income compare to related cost of loss (net of reinsurance) and other expenses as of the end of each of the last ten years. The rows of the table are defined as follows:

(1) This line shows the total of each fiscal year’s gross earned contributions and investment revenue,contributions placed with reinsurers, and net earned contributions and reported investment revenue.

(2) This line shows each fiscal year’s other operating costs, including overhead and claims’ expense thatcannot be allocated to individual claims.

(3) This line shows the gross incurred claims and allocated claim adjustment expenses, claims assumedby reinsurers, and net incurred claims and allocated claim adjustment expenses (both paid andaccrued) as originally reported at the end of the first year in which the event that triggered coverageunder the contract occurred (called fund year).

(4) This section of 10 rows shows the cumulative net amounts paid as of the end of successive years foreach fund year.

(5) This line shows the latest re-estimated amount of claims assumed by reinsurers as of the end of thecurrent year for each accident year.

(6) This section of 10 rows shows how each fund year’s net incurred claims increased or decreased as ofknown claims, re-evaluation of existing information on known claims, as well as emergence of newclaims not previously known.)

(7) This line compares the latest re-estimated incurred claims amount to the amount originallyestablished (line 3) and shows whether this latest estimate of claims cost is greater or less thanoriginally thought.

As data for individual fund years mature, the correlation between original estimates and re-estimated amounts is commonly used to evaluate the accuracy of incurred claims currently recognized.


62

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1 Contribution and Investment revenues: Earned 73,463$ 67,992$ 62,110$ 49,607$ 66,569$ 69,660$ 74,831$ 68,263$ 66,358$ 92,294$ Assumed by reinsurers* 3,912 2,598 1,778 1,964 1,653 1,858 1,938 2,028 2,104 2,165 Net 69,551 65,394 60,332 47,643 64,916 67,802 72,893 66,235 64,254 90,129

2 Unallocated expenses 19,423 19,902 20,559 21,625 19,325 20,239 20,612 20,434 20,844 22,448

3 Estimated incurred claims and allocatedexpenses, end of fund year: Incurred 46,768 51,054 50,659 50,879 56,755 47,907 51,719 49,956 43,158 47,460 Assumed by reinsurers 46 42 5 238 11 11 11 16 36 42 Net incurred 46,722 51,012 50,654 50,641 56,744 47,896 51,708 49,940 43,122 47,418

4 Paid (cumulative) as of: End of fund year 16,816 19,781 18,476 20,075 20,811 17,705 17,379 18,145 16,721 18,728 One year later 28,734 32,363 30,781 29,849 34,882 31,669 29,999 31,038 28,719 Two years later 31,168 35,169 32,847 33,043 39,701 34,884 32,999 34,318 Three years later 32,081 35,692 33,412 34,858 40,915 35,901 34,296 Four years later 31,634 36,266 34,041 36,304 41,471 36,411 Five years later 32,017 36,656 34,277 37,207 42,213 Six years later 32,477 36,937 34,740 38,024 Seven years later 32,736 37,144 35,020 Eight years later 32,912 37,317 Nine years later 33,133

5 Re-estimated claims and expensesassumed by reinsurers: 0 0 1 1,872 0 5 696 0 2 42

6 Re-estimated incurred claims and allocated expenses: End of fund year 46,722 51,012 50,654 50,641 56,744 47,896 51,708 49,940 43,122 47,418 One year later 46,511 49,474 47,134 53,460 56,860 48,141 49,599 46,971 43,689 Two years later 40,536 45,072 43,760 50,556 54,268 45,689 46,451 44,700 Three years later 38,761 43,816 42,468 47,295 53,588 44,805 46,608 Four years later 40,357 43,040 41,529 46,970 54,033 45,069 Five years later 39,809 42,082 41,940 49,222 54,264 Six years later 37,664 41,763 41,196 49,149 Seven years later 37,445 41,689 40,372 Eight years later 37,655 41,629 Nine years later 37,868

7 (Decrease) increase in estimated incurredclaims and expense from endof fund year: (8,854) (9,383) (10,282) (1,492) (2,480) (2,827) (5,100) (5,240) 567 0

Prior to fiscal year ending September 30, 2013, line 4 includes payments to Lifetime Benefits and line 6 reflects discounts taken on claims transferred to Lifetime Benefits (see Note 1).

*Including Reinsurance Fund, Large Loss Fund and Outside Reinsurers.

WORKERS' COMPENSATION

Fiscal and Fund Year Ended September 30(In Thousands of Dollars)


63

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1 Contribution and Investment revenues: Earned 52,577$ 52,207$ 49,640$ 40,022$ 54,224$ 55,056$ 54,640$ 48,383$ 48,272$ 67,190$ Assumed by reinsurers* 1,319 892 786 807 1,014 946 933 1,120 1,162 1,134 Net 51,258 51,315 48,854 39,215 53,210 54,110 53,707 47,263 47,110 66,056


3 Estimated incurred claims and allocatedexpenses, end of fund year: Incurred 28,983 29,284 31,810 35,503 35,487 35,357 36,718 39,389 41,303 42,960 Assumed by reinsurers 39 21 12 5 2 0 0 0 0 0 Net incurred 28,944 29,263 31,798 35,498 35,485 35,357 36,718 39,389 41,303 42,960


5 Re-estimated claims and expensesassumed by reinsurers: 0 0 0 0 0 0 0 0 0 0


7 (Decrease) increase in estimated incurredclaims and expense from endof fund year: 3,996 3,701 1,245 1,282 3,493 7,025 3,072 (66) 892 0


LIABILITY



64

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1 Contribution and Investment revenues: Earned 43,743$ 46,672$ 49,539$ 48,290$ 55,573$ 57,607$ 60,063$ 64,611$ 71,921$ 89,414$ Assumed by reinsurers* 9,978 10,087 11,507 11,947 10,666 9,525 9,214 13,238 16,751 19,772 Net 33,765 36,585 38,032 36,343 44,907 48,082 50,849 51,373 55,170 69,642


3 Estimated incurred claims and allocatedexpenses, end of fund year: Incurred 24,257 29,538 30,800 29,082 37,537 47,339 64,714 96,491 41,127 58,328 Assumed by reinsurers 50 5 380 212 4,225 10,312 22,280 55,755 753 259 Net incurred 24,207 29,533 30,420 28,870 33,312 37,027 42,434 40,736 40,374 58,069


5 Re-estimated claims and expensesassumed by reinsurers: 76 661 234 3,837 21,447 11,026 21,868 120,162 2,020 259


7 (Decrease) increase in estimated incurredclaims and expense from endof fund year: (2,010) 266 2,551 1,101 137 (1,759) (1,698) (2,246) (516) 0


PROPERTY



65

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1 Contribution and Investment revenues:Earned $902 $1,092 $1,359 $898 $1,449 $1,146 $1,134 $452 $125 $1,268Assumed by reinsurers 9 11 15 15 16 11 10 7 4 4Net 893 1,081 1,344 883 1,433 1,135 1,124 445 121 1,264

2 Unallocated Expenses 12 20 10 17 120 129 133 133 137 127

3 Expenses incurred claims and allocatedexpenses, end of fund year: Incurred 0 0 0 0 0 0 2 15 0 5 Assumed by reinsurers 0 0 0 0 0 0 0 0 0 0 Net incurred 0 0 0 0 0 0 2 15 0 5

4 Paid (cumulative) as of:End of fund year 0 0 0 0 0 0 2 0 0 0One year later 0 0 0 0 0 0 5 0 0Two years later 0 0 0 0 0 0 14 0Three years later 0 0 0 0 0 0 14Four years later 0 0 0 0 0 0Five years later 0 0 0 0 0Six years later 0 0 0 0Seven years later 0 0 0Eight years later 0 0Nine years later

5 Re-estimated incurred claims and expensesassumed by reinsurers: 0 0 0 0 0 0 0 0 0 0

6 Re-estimated incurred claims and allocated expenses:End of fund year 0 0 0 0 0 0 2 15 0 5One year later 0 0 0 0 0 0 9 0 0Two years later 0 0 0 0 0 0 14 0Three years later 0 0 0 0 0 0 14Four years later 0 0 0 0 0 0Five years later 0 0 0 0 0Six years later 0 0 0 0Seven years later 0 0 0Eight years later 0 0Nine years later

7 Increase in estimated incurredclaims and expense from end of fund year: 0 0 0 0 0 0 12 (15) 0 0

COASTAL STORM



66

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1 Contribution and Investment revenues:Earned $12,279 $11,500 $10,343 $2,269 $11,254 $10,757 $10,827 $6,052 $8,424 $20,633Assumed by reinsurers 0 0 0 0 0 0 0 0 0 0Net 12,279 11,500 10,343 2,269 11,254 10,757 10,827 6,052 8,424 20,633

2 Unallocated Expenses 86 96 105 110 1,017 1,086 1,107 1,097 1,114 1,168

3 Expenses incurred claims and allocatedexpenses, end of fund year: Incurred 200 80 147 450 4,225 9,462 22,417 31,455 3,434 259 Assumed by reinsurers 0 0 0 0 0 0 0 0 0 0 Net incurred 200 80 147 450 4,225 9,462 22,417 31,455 3,434 259

4 Paid (cumulative) as of:End of fund year 0 5 0 105 0 0 3,351 2,202 5 259One year later 76 5 0 195 1,830 4,442 14,462 25,444 119Two years later 76 5 0 556 7,092 8,567 16,722 33,539Three years later 76 5 0 924 7,850 10,438 18,944Four years later 76 169 14 2,904 8,012 11,026Five years later 76 169 59 3,827 11,676Six years later 76 169 59 3,837Seven years later 76 169 59Eight years later 76 169Nine years later 76

5 Re-estimated incurred claims and expensesassumed by reinsurers: 0 0 0 0 0 0 0 0 0 0

6 Re-estimated incurred claims and allocated expenses:End of fund year 200 80 147 450 4,225 9,462 22,417 31,455 3,434 259One year later 99 23 51 1,159 3,466 10,909 28,183 45,342 2,770Two years later 89 9 188 1,942 12,350 11,066 24,675 44,667Three years later 77 10 112 3,739 12,622 12,047 24,400Four years later 81 180 113 3,921 12,486 11,534Five years later 81 174 92 5,021 12,272Six years later 81 174 64 4,934Seven years later 81 174 64Eight years later 81 174Nine years later 81

7 (Decrease) increase in estimated incurredclaims and expense from end of fund year: (119) 94 (83) 4,484 8,047 2,072 1,983 13,212 (664) 0

REINSURANCE



67


September 30, 2019

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

The schedule below shows the changes in Total Pension Liability less the changes in Fiduciary Net Pension, resulting in the Net Pension (Asset) Liability calculation for the Pool.

Schedule of Changes in Net Pension Liability and Related Ratios


A. Total pension liability 2014 2015 2016 2017 2018

1. Service Cost 3,462,948$ 3,729,750$ 4,043,502$ 4,173,329$ 4,263,766$

2. Interest (on the Total Pension Liability) 7,091,398 7,854,694 8,316,616 9,012,508 9,726,192

3. Changes of benefit terms - 2,029,099 - - -

4. Difference between expected and actual experience 177,106 810,546 629,506 296,152 (170,223)

5. Changes of assumptions - 820,427 - - -

6. Benefit payments, including refunds of employee contributions (1,961,917) (2,017,510) (2,728,666) (2,761,390) (3,146,837)

7. Net change in total pension liability 8,769,535 13,227,006 10,260,958 10,720,599 10,672,898

8. Total pension liability - beginning 100,555,164 109,324,699 122,551,705 132,812,663 143,533,262

9. Total pension liability - ending 109,324,699$ 122,551,705$ 132,812,663$ 143,533,262$ 154,206,160$

B. Plan fiduciary net position

1. Contributions - employer 8,865,171$ 2,938,215$ 2,407,378$ 2,754,077$ 2,838,949$

2. Contributions - employee 1,532,174 1,579,447 1,636,942 1,692,619 1,742,345

3. Net investment income 5,700,478 167,819 7,863,036 17,900,740 (4,453,479)

4. Benefit payments, including refunds of employee contributions (1,961,917) (2,017,510) (2,728,666) (2,761,390) (3,146,837)

5. Administrative Expenses (59,507) (102,194) (88,740) (92,692) (85,993)

6. Other (4,892) (5,055) (4,781) (4,698) (4,493)

7. Net change in plan fiduciary net position 14,071,507 2,560,722 9,085,169 19,488,656 (3,109,508)

7a. Contribution - employer accrual to fund UAAL* 3,700,000

8. Plan fiduciary net position - beginning 99,632,903 113,704,410 119,965,132 129,050,301 148,538,957

9. Plan fiduciary net position - ending 113,704,410$ 119,965,132$ 129,050,301$ 148,538,957$ 145,429,449$

C. Net pension (asset) liability [A.9 - B.9] (4,379,711)$ 2,586,573$ 3,762,362$ (5,005,695)$ 8,776,711$

D. 104.01% 97.89% 97.17% 103.49% 94.31%

E. Covered-employee payroll 21,888,198$ 22,563,522$ 23,171,933$ 24,179,194$ 24,890,637$

F. Net pension (asset) liability as a % of covered employee payroll [C / E] -20.01% 11.46% 16.24% -20.70% 35.26%

* Reflects accrual to fund at 9/30/16, with payment at or before December 31, 2016, the December 31, 2015 Plan Valuation's Unfunded

Actuarial Accrued Liability (UAAL).

Plan fiduciary net position as a % of the total pension liability [B.9 / A.9]


68


September 30, 2019

SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS

The schedule below shows the Pool’s required annual contributions from the actuarial valuation, compared with the actual contributions remitted. The schedule is based on the Pool’s respective fiscal year-end, not the valuation/measurement date.

The Actuarially Determined Contribution (ADC) dollar amount is calculated by multiplying the Pool’s Full Retirement Rate (excluding portion of rate for Supplemental Death Benefits Fund) by the applicable payroll amount. The Pool contributes to the TMRS Plan at the actuarially determined Full Retirement Rate. The difference between the ADC and Pool contributions equals the contribution deficiency/excess).

Notes to Schedule Methods and assumptions used to determine the contribution rates for the 12/31/18 valuation date can be found at Note 10.

Schedule of Contributions

(fiscal year end)

2015 2016 2017 2018 2019

Actuarially Determined Contribution 2,904,530$ 2,153,514$ 2,742,274$ 2,622,539$ 2,586,137$

Contributions in relation to the actuarially

determined contribution 2,908,414$ 2,535,600$ 2,679,841$ 2,818,177$ 2,711,241$

Contribution deficiency (excess) (3,884)$ (382,086)$ 62,433$ (195,638)$ (125,104)$

Covered employee payroll 22,308,219$ 23,007,631$ 24,097,309$ 24,764,299$ 24,890,637$

Contributions as a percentage of covered

employee payroll 13.04% 11.02% 11.12% 11.38% 10.89%

Actuarially Determined Contribution Rate 13.02% 9.36% 11.38% 10.59% 10.39%


69

Members

TML INTERGOVERNMENTAL RISK POOL

Board of Trustees

General Counsel

Executive Director

ChiefInformation

Officer

ChiefFinancialOfficer

Director of Legal Services

Deputy Executive Director

Finance&

Investments

Human Resources

InformationTechnology

Workers' Compensation

Claims

Office of Project

Management & Analytics

Legal

Subrogation

Liability

Member Services

Underwriting

Loss Prevention

Property

70

POOL MEMBERSHIP AS OF OCTOBER 1, 2019

71

Abbott Abernathy Abilene Abilene City of/Transit Mgmt of Abilene Abilene Housing Authority Ables Springs SUD Ackerly Addison Town of Adrian Agua Dulce Airline Improvement District Alamo Alamo Area COG Alamo Heights Alamo Housing Authority Alamo Regional Mobility Authority Alamo SWCD #330 Alba Alba Housing Authority Albany Aledo Alice Alice Housing Authority Allen Alliance Regional Water Authority Alma Alpine Alpine Housing Authority Alto Alto Housing Authority Alton Alvarado Alvin Alvord Ames Amherst Anahuac Anderson Anderson CAD Anderson County Housing Authority Anderson Mill Limited District Andrews Andrews CAD Angelina County WCID #4 Angelina County/City Health District Angleton Angleton Drainage District Angus Anna Annetta Annetta North Annetta South Annona Anson Anson Housing Authority Anthony Housing Authority Anthony Town of Anton Appleby Aquilla Water Supply District Aransas CAD

Aransas County Navigation District #1 Aransas Pass Aransas Pass Housing Authority Archer CAD Archer City Archer City Housing Authority Archer County MUD #1 Arcola Argyle Ark-Tex COG Arlington Entertainment AMD Arlington Housing Authority Arp Asherton Aspermont Aspermont Housing Authority Atascocita Joint Operations Board Atascosa Central Appraisal District Athens Municipal Water Auth Atlanta Atlanta Property Management Aubrey Aud's Creek Watershed Improvement Dist Aurora Austin - 505 Barton Springs Road Austin - City Hall Austin - Convention Center Austin - Economic & Redevelopment Svcs Austin - Housing Finance Austin - Neighborhood Partnering Program Austin - Rosewood Community Development Austin CAD Austin County ESD #2 Austin County ESD #3 Austin Housing Authority Austwell Avery Avery Housing Authority Avinger Avinger Housing Authority Azle Bacliff MUD Bailey Bailey Central Appraisal District Bailey's Prairie Village of Baird Baird Housing Authority Balch Springs Balcones Heights Balcones Heights Crime CPD Ballinger Ballinger Housing Authority Balmorhea Balmorhea Housing Authority Bandera Bandera County Central Appraisal Dist Bandera County FWSD #1 Bandera County River Authority & GWD Bandera SWCD Bangs Bangs Housing Authority

Bardwell Barry City of Barstow Bartlett Bartlett Housing Authority Barton Springs/Edwards Aquifer Bartonville Bastrop Bastrop Central Appraisal District Bastrop County ESD #1 Bastrop County MUD #1 Bastrop County SWCD #340 Bastrop County WCID #2 Bastrop County WCID #3 Bastrop Housing Authority Bay City Bay City Housing Authority Baylor CAD Bayou Vista Bayside Town of Baytown Baytown Housing Authority Bayview Irrigation District #11 Bayview MUD Bayview Town of Beach City Bear Creek Village of Beasley Beaumont Housing Authority Beckville Beckville Housing Authority Bedford Bedias Bee CAD Bee Cave Bee Development Authority Bee GCD Beeville Beeville Housing Authority Beeville Water Supply District Bell CAD Bell County MUD #1 Bell County MUD #2 Bell County Public Health District Bell County WCID #2 Bellaire Bellevue Bellmead Bells Bellville Housing Authority Belton Belton Housing Authority Belvedere MUD Benavides Benbrook Benbrook Public Library District Benbrook Water Authority Benjamin Berry Creek Highlands MUD Berryville Bertram

Member MemberMember

72

Bethany SUD Beverly Hills Bevil Oaks Bexar Appraisal District Bexar County ESD #11 Bexar County Housing Authority Bexar County WCID #10 Bexar Metro 911 District Bexar-Medina-Atascosa Counties WCID #1 Big Bend SWCD #227 Big Lake Big Oaks MUD Big Sandy Big Sandy Housing Authority Big Spring Big Spring Housing Authority Big Wells Bishop Bishop Hills Village of Bistone MWSD Blackwell Blanco Blanco Co North Lib Dist/Johnson City Blanco County South Library Dist/Blanco Blanco-Pedernales GCD Blanket Block House MUD Bloomburg Blooming Grove Blooming Grove Housing Authority Blossom Blossom Prairie Housing Authority Blue Mound Blue Ridge Blum Boerne Bogata Bogata Housing Authority Bois D'arc MUD Bonham Bonney Village of Booker Booker-Booker Housing Foundation Borger Borger Housing Authority Bosque County Central Appraisal District Bovina Bovina Housing Authority Bowie Bowie County ESD #1 Bowie County ESD #2 Bowie County Housing Authority Bowie County SWCD Boyd Brackettville Brackettville Housing Authority Brady Brady Housing Authority Brazoria Brazoria CAD Brazoria County Cons/Recl Dist #3

Brazoria County Drainage District #5 Brazoria County FWSD #1 Brazoria County FWSD #2 Brazoria County MUD #23 Brazoria County MUD #24 Brazoria County MUD #25 Brazoria County MUD #35 Brazoria County MUD #61 Brazoria County MUD #66 Brazoria-Fort Bend County MUD #1 Brazos Central Appraisal District Brazos Country Brazos County Emergency 911 Brazos County ESD #1 Brazos Regional Public Utility Agency Brazos River Authority Brazos Transit District Brazos Valley COG Brazos Valley GCD Brazos Valley Solid Waste Mgmt Agency Brazos Valley SWCD #557 Breckenridge Breckenridge Housing Authority Bremond Bremond Housing Authority Brenham Brenham Housing Authority Brewster CAD Brewster Co Groundwater Cons District Briarcliff Village of Briaroaks Bridge City Bridgeport Bridgeport Housing Authority Bright Star-Salem SUD Briscoe CAD Broaddus Brock Bronte Bronte Housing Authority Brookesmith SUD Brookshire Brookshire Municipal Water District Brookside Village Brownfield Brownfield Housing Authority Brownsboro Brownsville Brownsville Housing Authority Brownsville Metro Brownsville Navigation District Brownsville Public Utilities Board Brownwood Brownwood Housing Authority Bruceville-Eddy Brush Country GCD Brushy Creek MUD Brushy Creek Reg Wastewater Treatment Brushy Creek Regional Utility Authority Bryan Bryan Housing Authority

Bryson Bryson Housing Authority Buckholts Buda Buena Vista-Bethel SUD Buffalo Buffalo Gap Buffalo Housing Authority Buffalo Springs Bullard Bulverde Bulverde Area Rural Library District Bunker Hill Village Burkburnett Burkburnett Housing Authority Burke Burleson Burleson CAD Burleson County MUD #1 Burnet Burnet Central Appraisal District Burnet County ESD #1 Burnet Housing Authority Burney Road MUD Burton Byers Bynum Cactus Caddo Basin SUD Caddo Mills Caddo Mills Housing Authority Caldwell Caldwell CAD Caldwell County MUD #1 Caldwell Housing Authority Caldwell Valley MUD #1 Caldwell-Travis SWCD #304 Calhoun CAD Calhoun County DD #11 Calhoun County E911 ECD Calhoun County GCD Calhoun County MUD #1 Calhoun County WCID #1 Calhoun Port Authority Callahan CAD Callahan County Nutrition Project Callahan Divide SWCD #552 Callisburg Calvert Calvert Housing Authority Cameron Cameron Appraisal District Cameron County DD #4 Cameron County ECD Cameron County Housing Authority Cameron County Regional Mobility Auth Cameron Housing Authority Camfield MUD Camino Real Regional Mobility Authority Camp Central Appraisal District Camp Wood

Member MemberMember

73

Campbell Canadian Caney City Caney Creek MUD Canton Canyon Canyon Falls MUD #1 Canyon Falls WCID #2 Canyon Housing Authority Canyon Lake Comm Library District Canyon Regional Water Authority Cape Royale Utility District Capital Area COG Capital Area Metropolitan Planning Org Capital Area Rural Transportation System Capital Metro Transportation Authority Caprock Hospital Dist & Floydada EMS Carbon Carmine Carrizo Springs Carrizo Springs Housing Authority Carrollton Carson CAD Carthage Cash SUD Cashion Community Cass CAD Cass County ESD #1 Castle Hills Castlewood MUD Castro CAD Castroville Cedar Bayou Park Utility District Cedar Hill Cedar Park Celeste Celina Center Center Housing Authority Centerville Centerville Housing Authority Central Harris County Region Water Auth Central Texas COG Central Texas GCD Central Texas Housing Consortium Central Texas Regional Mobility Auth Central Texas Rural Transit District Central WCID Chalk Hill SUD Chambers CAD Chandler Channing Charlotte Chateau Woods MUD Cherokee CAD Chico Childress Childress CAD Childress County Hospital District Childress Housing Authority Chillicothe

China China Grove City of Chireno Chisholm Trail SUD Christine Cibolo Cibolo Creek Municipal Authority Cinco MUD #1 Cinco MUD #12 Cinco MUD #3 Cinco MUD #6 Cinco MUD #7 Cinco MUD #8 Cinco MUD #9 Cinco Southwest MUD #1 Cinco Southwest MUD #2 Cinco Southwest MUD #3 Cinco Southwest MUD #4 Cisco Cisco Housing Authority City Park Redevelopment Auth TIRZ #12 Clarendon Clarendon Housing Authority Clarksville Clarksville City Clarksville Housing Authority Claude Clay CAD Clear Brook City MUD Clear Creek Watershed Authority Clear Fork GCD Clear Lake City Water Authority Clear Lake Shores Clearwater Ranch MUD #1 Clearwater UWCD Cleburne Cleveland Cleveland Housing Authority Clifton Clifton Housing Authority Clint Town of CLL MUD #1 Clute Clyde CNP Utility District Coahoma Coastal Bend COG Coastal Plains Community MHMR Center Cochran Central Appraisal District Cockrell Hill Coffee City Coke County SWCD #219 Coke County UWCD Coldspring Coleman Coleman County SUD Coleman Housing Authority College Mound SUD Colleyville Collin Co Central Appraisal District Collin County MUD #1

Collin County SWCD Collinsville Colmesneil Colorado City Colorado City Housing Authority Colorado County CAD Colorado County WCID #2 Colorado Valley Transit District Columbus Comal CAD Comal Co Water Oriented Recreation Dist Comal County ESD #7 Comal County WCID #6 Comal Trinity GCD Comanche Comanche Central Appraisal District Comanche Housing Authority Combes Combine Combined Consumers SUD Commerce Commerce Housing Authority Commodore Cove Improvement District Como Como Housing Authority Concho CAD Concho SWCD #201 Concho Valley COG Concho Valley Transit District Conroe Conroe MUD #1 Cooke CAD Coolidge Coolidge Housing Authority Cooper Cooper Housing Authority Coppell Copper Canyon Copperas Cove Housing Authority Corinth Corinthian Point MUD #2 Corpus Christi Corpus Christi Downtown Management Dist Corpus Christi Gas Utility Department Corpus Christi Housing Authority Corrigan Corrigan Housing Authority Corsicana Corsicana Housing Authority Coryell CAD Coryell City Water Supply District Cotton Center MUD #1 Cotton Center MUD #2 Cottonwood Cottonwood Creek MUD #1 Cottonwood Creek WCID #3 Cottonwood Shores Cotulla Cotulla Housing Authority County Line SUD Coupland

Member MemberMember

74

Cove Covington Cow Creek GCD Crandall Crane Crane CAD Cranfills Gap Crawford Creedmoor Cresson Crockett Crockett County GCD Crockett County SWCD Crockett County WCID #1 Crockett Housing Authority Crosby Central Appraisal District Crosby MUD Crosbyton Crosbyton Housing Authority Cross Plains Cross Plains Housing Authority Cross Roads Cross Roads SUD Cross Timber Cross Timbers SWCD #556 Crowell Crowell Housing Authority Crowley Crystal City Crystal City Housing Authority Cuero Cuero Community Hospital Cuero Housing Authority Culberson CAD Culberson County GCD Cumby Cumby Housing Authority Cuney Cut and Shoot Cypress Forest PUD Cypress Hill MUD #1 Cypress Ranch WCID #1 Cypress Springs SUD Cypress Waters Municipal Management Dist Cypress-Klein Utility District Daingerfield Daingerfield Housing Authority Daisetta Dalhart Dallam CAD Dallas Dallas Area Rapid Transit (DART) Dallas CAD Dallas County Flood Control Dist #1 Dallas Housing Authority Dalworth SWCD #519 Dalworthington Gardens Danbury Darrouzett Darrouzett Hospital District Dawson

Dawson County Central Appraisal District Dawson Housing Authority Dayton Dayton Housing Authority Dayton Lakes De Leon De Leon Housing Authority Deaf Smith CAD Decatur Decatur Housing Authority DeCordova Deep East Texas COG Deer Park DeKalb DeKalb Housing Authority Del Rio Del Rio Housing Authority Dell City Delta CAD Delta County MUD Delta County SWCD Denco Area 911 District Denison Denison Housing Authority Dennis Denton Central Appraisal District Denton County FWSD #10 Denton County FWSD #4A Denton County FWSD #6 Denton County FWSD #7 Denton County Reclamation & Road Dist Denton County Transportation Authority Denton Housing Authority Denver City Denver City Housing Authority Deport Deport Housing Authority DeSoto Detroit Detroit Housing Authority Devers Devil's River SWCD #224 Devine Devine Housing Authority DeWitt CAD DFW International Airport Diboll Diboll Housing Authority Dickens Dickinson Dickinson Management District #1 Dilley Dilley Housing Authority Dimmit CAD Dimmitt DISH Town of Dodd City Dodson Domino Donley County Hospital District Donna

Donna Housing Authority Dorchester Double Horn Double Oak Town of Douglassville Draper Driftwood Economic Development Mgmt Dist Dripping Springs Dripping Springs Community Library Dist Driscoll Dublin Dublin Housing Authority Dumas Duncanville Duval CAD Duval County Cons/Recl District Duval County ESD #1 Duval County GCD Duval County Housing Authority Eagle Lake Eagle Pass Eagle Pass Housing Authority Eagle Pass Waterworks Early Earth East Aldine Management District East Bernard East Cedar Creek FWSD East Central SUD East Downtown Management District East Downtown Redev Auth/Reinv Zone #15 East End District East Fork SUD East Medina County SUD East Montgomery County Improvement Dist East Mountain East Tawakoni East Texas COG East Texas MUD East Travis Gateway Library District Eastland Easton Ecleto Creek Watershed District Ector Ector County Emergency Comm District Edcouch Edcouch Housing Authority Eden Eden Housing Authority Edgecliff Village Town of Edgewood Edgewood Housing Authority Edinburg Edinburg Housing Authority Edmonson Edna Edna Housing Authority Edom Edwards Aquifer Authority Edwards Central Appraisal District Edwards Plateau SWCD

Member MemberMember

75

El Campo El Campo Housing Authority El Cenizo El Lago El Paso El Paso Central Appraisal District El Paso County 911 District El Paso County Housing Authority El Paso County Tornillo WID El Paso County WCID #4 El Paso Downtown Management District El Paso Water Utilities Public Service Eldorado Eldorado Housing Authority Electra Electra Housing Authority Elgin Elgin Housing Authority Elkhart Ellis Appraisal District Ellis County ESD #3 Ellis County ESD #9 Ellis County Rural Rail District Ellis-Prairie SWCD Elm Creek Water Control District Elm Creek Watershed Authority Elmendorf Elsa Elsa Housing Authority Emerald Bay MUD Emhouse Emory Enchanted Oaks Encinal Engelman Irrigation District Ennis Ennis Housing Authority Erath CAD Escobares Escondido Creek Watershed District Estelline Euless Eureka Eustace Evadale WCID #1 Evant Everman Fair Oaks Ranch Fairchilds Village of Fairfield Fairview Falfurrias Falfurrias Housing Authority Falfurrias Housing Authority (FmHA) Falls CAD Falls City Falls City Housing Authority Falls County WCID #1 Fannin CAD Fannin County SWCD Fannin County Water Supply Agency

Fannin Rural Rail Transportation Dist Farmers Branch Farmersville Farwell Fate Fayette CAD Fayette County GCD Fayette County WCID Fayetteville Fern Bluff MUD Ferris Ferris Housing Authority First Colony LID First Colony LID #2 First Colony Management District Fisher County Hospital District Five Corners Improvement District Flamingo Isles MUD Flatonia Flatonia Housing Authority Florence Floresville Floresville Electric Light/Power System Floresville Housing Authority Flower Mound Town of Floyd CAD Floydada Floydada Housing Authority Flying L Public Utility District Foard CAD Foard County Hospital District Follett Forest Hill Forest Hill Library District Forney Forsan Fort Bend Co Improvement District #24 Fort Bend County ESD #2 Fort Bend County FWSD #1 Fort Bend County FWSD #2 Fort Bend County LID #10 Fort Bend County LID #14 Fort Bend County LID #17 Fort Bend County MUD #121 Fort Bend County MUD #124 Fort Bend County MUD #141 Fort Bend County MUD #162 Fort Bend County MUD #163 Fort Bend County MUD #165 Fort Bend County MUD #187 Fort Bend County MUD #189 Fort Bend County MUD #199 Fort Bend County MUD #25 Fort Bend County MUD #5 Fort Bend County MUD #50 Fort Bend County MUD #81 Fort Bend County Toll Road Authority Fort Bend ESD #3 Fort Bend Grand Parkway Toll Road Auth Fort Bend Redevelopment Authority Fort Clark MUD

Fort Hancock WCID Fort Stockton Fort Worth Fort Worth - AA Fort Worth Housing Solutions Fort Worth Transportation Authority Four Way SUD Fourth Ward Redevelopment Authority Franklin Franklin CAD Franklin Housing Authority Frankston Fredericksburg Fredericksburg Hospital Authority Freeport Freer Freer WCID Freestone Central Appraisal District Friendswood Frio CAD Friona Frisco Frisco Housing Authority Fritch Frog Pond Lake WCID #1 Frost Fruitvale Fruitvale Housing Authority Fulshear Fulton Gaines Central Appraisal District Gainesville Gainesville Housing Authority Galena Park Gallatin Galveston Galveston Central Appraisal District Galveston County DD #1 Galveston County DD #2 Galveston County FWSD #6 Galveston County Health District Galveston County MUD #12 Galveston County MUD #14 Galveston County MUD #15 Galveston County MUD #30 Galveston County MUD #39 Galveston County MUD #43 Galveston County MUD #44 Galveston County MUD #46 Galveston County MUD #52 Galveston County MUD #66 Galveston County MUD #68 Galveston County WCID #1 Galveston County WCID #12 Galveston County WCID #19 Galveston Housing Authority Ganado Garden Ridge Garrett Garrison Gary

Member MemberMember

76

Gatesville Gatesville Housing Authority Gateway GCD George West Georgetown Georgetown Housing Authority Gholson Giddings Gillespie Central Appraisal District Gillespie County SWCD #220 Gillespie County WCID Gilmer Gilmer Housing Authority Gladewater Gladewater Housing Authority Glasscock County SWCD Glasscock GCD Glen Rose Glenn Heights Gober MUD Godley Golden Crescent Reg Planning Commission Goldsmith Goldthwaite Goldthwaite Housing Authority Goliad Goliad CAD Goliad County GCD Goliad Housing Authority Golinda Gonzales Gonzales Central Appraisal District Gonzales County SWCD #338 Gonzales County UWCD Gonzales Housing Authority Goodlow Goodrich Gordon Goree Gorman Gorman Housing Authority Graford Graham Graham Regional Medical Center Granbury Granbury Housing Authority Grand Prairie Grand Saline Grand Saline Housing Authority Grandfalls Grandfalls Housing Authority Grandview Grandview Housing Authority Granger Granger Housing Authority Granite Shoals Granjeno Grapeland Grapeland Housing Authority Grapevine Grapevine Housing Authority

Gray CAD Grayson County Housing Authority Grayson County Regional Mobility Auth Greater Northside Management District Green Valley SUD Greenbelt Municipal & Industrial WA Greenhawe WCID #2 Greenville Greenville Electric Utility Greenville Housing Authority Gregg CAD Gregory Gregory Housing Authority Grey Forest Grimes CAD Groesbeck Groesbeck Housing Authority Groom Groves Groveton Groveton Housing Authority Gruver Gulf Coast Water Authority Gulfgate Redevelopment Authority TIRZ #8 Gun Barrel City Gunter Gustine Haciendas Del Norte WID Hackberry Hale CAD Hale Center Hale Center Housing Authority Hale County Housing Authority Hale County SWCD #132 Hall CAD Hall County Hospital District Hall-Childress SWCD #109 Hallettsville Hallettsville Housing Authority Hallsburg Hallsville Haltom City Haltom City Housing Authority Hamilton Hamilton CAD Hamilton Housing Authority Hamilton/Coryell SWCD Hamlin Hamlin Housing Authority Hamlin Memorial Hospital Hansford CAD Hansford SWCD #148 Happy Hardin Hardin County ESD #2 Hardin County ESD #5 Hardin County WCID #1 Hardy/Near Northside RDA/TIRZ #21 Harker Heights Harlingen Harlingen Housing Authority

Harris CAD Harris Co Imp Dist3-Upper Kirby Mgt Dist Harris Co Road Improvement District #1 Harris County ESD #12 Harris County ESD #25 Harris County ESD #6 Harris County FWSD #27 Harris County FWSD #45 Harris County FWSD #47 Harris County FWSD #48 Harris County FWSD #58 Harris County FWSD 1A Harris County Housing Authority Harris County ID #25 Harris County Improvement Dist #1 Harris County Improvement Dist #4 Harris County Improvement District #12 Harris County Improvement District #17 Harris County Improvement District #5 Harris County MUD #106 Harris County MUD #11 Harris County MUD #130 Harris County MUD #151 Harris County MUD #152 Harris County MUD #153 Harris County MUD #154 Harris County MUD #156 Harris County MUD #163 Harris County MUD #189 Harris County MUD #205 Harris County MUD #217 Harris County MUD #222 Harris County MUD #264 Harris County MUD #286 Harris County MUD #290 Harris County MUD #321 Harris County MUD #322 Harris County MUD #345 Harris County MUD #354 Harris County MUD #355 Harris County MUD #358 Harris County MUD #359 Harris County MUD #361 Harris County MUD #367 Harris County MUD #372 Harris County MUD #373 Harris County MUD #391 Harris County MUD #396 Harris County MUD #397 Harris County MUD #399 Harris County MUD #407 Harris County MUD #411 Harris County MUD #434 Harris County MUD #44 Harris County MUD #450 Harris County MUD #46 Harris County MUD #468 Harris County MUD #473 Harris County MUD #48 Harris County MUD #480 Harris County Municipal Mgmt Dist #1

Member MemberMember

77

Harris County Municipal Utility District No. 316 Harris County Utility District #15 Harris County WCID #1 Harris County WCID #132 Harris County WCID #145 Harris County WCID #155 Harris County WCID #156 Harris County WCID #21 Harris County WCID #36 Harris County WCID #50 Harris County WCID #91 Harris County WCID #92 Harrisburg Redevelopment Authority/Houston TIRZ #23 Harrison Central Appraisal District Harrison County SWCD Hart Hartley CAD Haskell Haskell CAD Haskell Housing Authority Haslet Hawk Cove Hawkins Hawley Hays Hays Central Appraisal District Hays County ESD #3 Hays County ESD #6 Hays County MUD #5 Hays County SWCD #351 Hays Trinity GCD Hays WCID #1 Hays WCID #2 Headwaters GCD Hearne Hearne Housing Authority Heart of Texas COG Heath Heatherloch MUD Hedley Hedwig Village Helotes Hemphill Hemphill Housing Authority Hempstead Henderson Henderson Co Levee Improvement Dist #3 Henderson County 911 District Henderson County ESD #1 Henderson County ESD #4 Henderson County ESD #6 Henderson County ESD #7 Henderson County Hospital Authority Henderson Housing Authority Henrietta Henrietta Housing Authority Hereford Hewitt Hickory Creek SUD

Hickory Creek Town of Hickory UWCD #1 Hico Hico Housing Authority Hidalgo CAD Hidalgo City of Hidalgo County Drainage District #1 Hidalgo County ESD #3 Hidalgo County Housing Authority/Weslaco Hidalgo County Irrigation District #6 Hidalgo County Regional Mobility Auth Hideaway Higgins Higgins/Lipscomb Hospital District High Point SWCD #230 Highland Haven Highland Park Town of Highland SWCD #210 Highland Village Highlands at Mayfield Ranch MUD Hill CAD Hill Country Community MHMR Center Hill Country Transit District Hill Country UWCD Hill Country Village Hill County Blackland SWCD Hillcrest Village Hillsboro Hilshire Village Hiram Clarke/Fort Bend TIR Zone Hitchcock Hobby Area District Hobby Area Improvement Corporation Hockley CAD Holiday Lakes Town of Holland Holliday Hollywood Park Hondo Hondo Creek Watershed Improvement Dist Honey Grove Hood Central Appraisal District Hooks Hopkins CAD Hopkins County Hospital District Hopkins County SWCD Horizon City Horizon Regional MUD Horseshoe Bay Houston Houston CAD Houston Downtown Management District Houston Forensic Science Center Inc Houston Housing Authority Houston TIRZ #24 Houston TIRZ #27 Houston/Galveston Area COG Howard CAD Howard County 911 Howard SWCD #243 Howardwick

Howe Hubbard Hubbard Housing Authority Hudson Hudson Oaks Hudspeth County Cons/Recl Dist #1 Hudspeth County ESD #1 Hudspeth County UWCD #1 Hudspeth County WCID #1 Hughes Springs Hughes Springs Housing Authority Hull FWSD Humble Hungerford MUD Hunt CAD Hunters Creek Village Huntington Huntington Housing Authority Huntsville Huntsville Housing Authority Hurst Hutchins Hutchinson CAD Hutto Huxley Idalou Idlewood WCID #1 Impact Indian Lake Industry Ingleside Ingleside Housing Authority Ingleside on the Bay Ingram International Management District Inverness Forest Improvement District Iola Iowa Colony Village of Iowa Park Iraan Iraan General Hospital District Iredell Irion CAD Irion County Water Conservation District Irving Irving Flood Control Dist Section I Irving Flood Control Dist Section III Isaacson MUD Italy Itasca Ivanhoe City of Jacinto City Jack CAD Jack County WCID #1 Jackrabbit Road PUD Jacksboro Jackson CAD Jackson County ESD #1 Jackson County ESD #3 Jackson County Hospital District Jackson County WCID #2

Member MemberMember

78

Jacksonville Jacksonville Housing Authority Jamaica Beach Jarrell Jasper Jasper CAD Jasper Housing Authority Jayton Jefferson Jefferson CAD Jefferson County Drainage District #6 Jefferson Housing Authority Jersey Village Jewett Jim Hogg County Housing Authority Jim Hogg County WCID #2 Jim Wells County FWSD #1 Johnson City Johnson City Housing Authority Johnson County Central Appraisal Dist Johnson County ESD #1 Johnson County SUD Johnson County SWCD #541 Jonah Water SUD Jones CAD Jones Creek Village of Jonestown Josephine Joshua Jourdanton Jourdanton Housing Authority Junction Junction Housing Authority Justin Karnes CAD Karnes City Karnes County SWCD #343 Katy Kaufman Kaufman CAD Kaufman-Van Zandt Rockwall County SWCD Keene Keller Kelly Lane WCID #1 Kelly Lane WCID #2 Kemah Kemp Kemp Housing Authority Kempner Kendall Appraisal District Kendall County WCID #1 Kendall Lakes TIRZ Redevelopment Auth Kendall SWCD #216 Kendleton Kenedy Kenedy Housing Authority Kenefick Kennard Kennedale Kerens Kerens Housing Authority

Kermit Kerr Central Appraisal District Kerr County SWCD #217 Kerr Emergency 911 Network Kerrville Kerrville Public Utility Board Kilgore Killeen Killeen Housing Authority Kimble Central Appraisal District Kingsbury Kingsland MUD Kingsville Kingsville Housing Authority Kinney CAD Kinney County GCD Kirby Kirbyville Kirbyville Housing Authority Kleberg CAD Klein PUD Knollwood Knox City Knox City Housing Authority Knox County Rural SUD Kosse Kountze Kress Krugerville Krum Kurten Kyle Kyle Housing Authority La Coste La Feria La Feria Irrigation District #3 La Grange La Grange Housing Authority La Grulla La Joya La Joya Housing Authority La Marque La Porte La Salle CAD La Salle WCID #1A La Vernia La Villa La Ward Lacy-Lakeview Ladonia Lago Vista Laguna Madre Water District Laguna Vista Lake Amanda WCID #1 Lake Bridgeport Lake Cities MUA Lake City Lake Dallas Lake Forest Plant Advisory Council Lake Forest UD Lake Houston Redevelopment Authority

Lake Houston TIRZ 10 Lake Jackson Lake LBJ WCID #1 Lake Pointe MUD Lake Proctor Irrigation Authority Lake Tanglewood Lake Travis Community Library District Lake Worth Lakeport Lakeside (San Patricio Co) Lakeside (Tarrant Co) Lakeside City Lakeside MUD #3 Lakeside Water Supply District Lakeside WCID #1 Lakeside WCID #2A Lakeside WCID #2B Lakeside WCID #2C Lakeside WCID #2D Lakeview Lakeview Police Department Lakeway Lakeway MUD Lakewood Village Lamar CAD Lamar SWCD Lamb CAD Lamesa Lampasas Lampasas CAD Lampasas County WCID #1 Lancaster Laredo Laredo Housing Authority Laredo Transit Latexo Lavaca County Central Appraisal District Lavaca-Navidad River Authority Lavon Lazy Nine MUD #1A Lazy Nine MUD #1B Lazy Nine MUD #1C Lazy Nine MUD #1D Lazy Nine MUD #1E Lazy River Improvement District League City Leakey Leander Leander MUD #1 Leander MUD #2 Leander MUD #3 Leary Lee CAD Lee-Fayette Counties Cummins Creek WCID Lefors Leland Woods Redevelopment Authority Leland Woods Redevelopment Authority #2 Leon CAD Leon Valley Leona Leonard

Member MemberMember

79

Leroy Levelland Levelland Housing Authority Lewisville Lexington Liberty Liberty County Central Appraisal Dist Liberty County DD #2 Liberty County DD #4 Liberty County WCID #5 Liberty Hill Liberty Hill Public Library District Limestone CAD Limestone County Senior Services Project Limestone-Falls SWCD Lindale Linden Linden Housing Authority Lindsay Lipan Lipan-Kickapoo WCD Lipscomb Co Central Appraisal District Little Elm Town of Little River Academy Little River-San Gabriel SWCD #508 Littlefield Live Oak Live Oak UWCD Liverpool Livingston Livingston Housing Authority Llano Llano Central Appraisal District Llano County ESD #1 Llano County MUD #1 Llano County SWCD #233 Llano Estacado UWCD Llano Housing Authority Lockhart Lockhart Housing Authority Lockney Lockney Housing Authority Log Cabin Logan Slough WID Lometa Lometa Housing Authority Lone Oak Lone Star Lone Star Regional Water Authority Lone Wolf GCD Longview Loraine Loraine Housing Authority Lorena Lorenzo Los Fresnos Los Fresnos Housing Authority Los Indios Lost Creek Limited District Lost Pines GCD Lott

Lott Housing Authority Lovelady Lower Brushy Creek WCID Lower Clear Fork/Brazos SWCD #551 Lower Kirby Pearland Mgmt District Lower Rio Grande Valley Dev Council Lower Trinity GCD Lower Valley Water District Lowry Crossing Lubbock Lubbock Central Appraisal District Lubbock County WCID #1 Lubbock Emergency Communication District Lubbock Housing Authority Lubbock-Citibus Lubbock/Reese Redevelopment Authority Lucas Luce Bayou PUD Lueders Luella SUD Lufkin Luling Luling Housing Authority Lumberton Lumberton MUD Lyford Lynn CAD Lytle Lytle Lake WCID Mabank Mabank Housing Authority MacBee SUD Macedonia Eylau MUD Mackenzie Municipal Water Authority Madison CAD Madisonville Madisonville Housing Authority Magnolia Magnolia East MUD Malakoff Malakoff Housing Authority Malone Manor Mansfield Manvel Marble Falls Marble Falls Housing Authority Marfa Marfa Housing Authority Marietta Marion Marion Cass SWCD Marion Central Appraisal District Marion County Hospital District Marlin Marlin Housing Authority Marquez Marshall Marshall Harrison County Health District Marshall Housing Authority Mart

Mart Housing Authority Martin County Fresh Water District Martindale Mason Mason Housing Authority Mason SWCD #223 Matador Matador Housing Authority Matador Water District Matagorda CAD Matagorda County WCID #6 Mathis Mathis Housing Authority Maud Maud Housing Authority Mauriceville MUD Maverick CAD Maverick County SWCD #253 Maverick County WCID #1 Maypearl McAllen McAllen Housing Authority McCamey McCulloch CAD McCulloch SWCD #249 McGregor McGregor Housing Authority McKinney McKinney Housing Authority McLean McLean Housing Authority McLendon-Chisholm McLennan CAD McLennan County Rural Transit District McLennan County WCID #2 McMullen County WCID #1 McMullen County WCID #2 McMullen GCD Meadow Meadowlakes Meadows Place Medina CAD Medina County 911 Medina County WCID #2 Medina Valley SWCD Meeker Municipal Water District Megargel Melissa Melvin Memorial City Redevelopment Authority Memorial Heights Redevelop Auth TIRZ #5 Memorial Hills UD Memorial Point UD Memorial Villages Police Department Memorial Villages Water Authority Memphis Memphis Housing Authority Menard Menard County SWCD #215 Mercedes Mercedes Housing Authority

Member MemberMember

80

Meridian Meridian Housing Authority Merkel Merkel Housing Authority Mertens Mertzon Mesa UWCD Mesquite Mesquite Groundwater Conservation Dist Metropolitan Area EMS Authority Mexia Mexia Housing Authority Meyer Ranch MUD of Comal County Miami Middle Concho SWCD Middle Rio Grande COG Middle Trinity GCD Midland Midland Central Appraisal District Midland County Housing Authority Midland County Utility District Midland Emergency Commission District Midland Housing Authority Midland SWCD Midland-Odessa Urban Transit District Midlothian Midlothian/Waxahachie Airport Midway Milam Appraisal District Milano Mildred Miles Milford Mills CAD Millsap Mineola Mineola Housing Authority Mineral Wells Mineral Wells Housing Authority Mingus Mission Mission Housing Authority Missouri City Mitchell County Appraisal District Mitchell County SWCD Mobeetie Mobile City Monahans Monahans Housing Authority Mont Belvieu Montague County Tax Appraisal District Montgomery Montgomery County ECD Montgomery County ESD #14 Montgomery County ESD #2 Montgomery County Housing Authority Montgomery County MUD #126 Montgomery County MUD #89 Montgomery County MUD #90 Montgomery County WCID #1 Montrose Management District

Moody Moody Housing Authority Moore CAD Moore's Crossing MUD Moran Morgan Morgan's Point Morgan's Point Resort Morris CAD Morton Motley CAD Motley County Hospital District Moulton Mount Calm Mount Enterprise Mount Pleasant Mount Pleasant Housing Authority Mount Vernon Mount Vernon Housing Authority Mountain City Mountain Peak SUD Muenster Muleshoe Muleshoe Housing Authority Munday Munday Housing Authority Murchison Murphy Mustang Ridge Nacogdoches Nacogdoches County ESD #4 Nacogdoches Housing Authority Nacogdoches SWCD Naples Naples Housing Authority NASA Area Management District Nash Nassau Bay Nassau Bay Redevelopment Authority Natalia Navarro Central Appraisal District Navarro County ESD #1 Navarro SWCD Navasota Navasota Housing Authority Nazareth Near Northwest Management District Neches/Trinity Valley GCD Nederland Needville Nevada New Berlin New Boston New Boston Property Management New Braunfels New Braunfels Housing Authority New Braunfels Utilities New Deal New Fairview New Home New Hope

New Hope SUD New London New Summerfield New Sweden MUD #1 New Waverly Newark Newcastle Newcastle Housing Authority Newport MUD Newton Newton Central Appraisal District Newton County ESD #5 Newton Housing Authority Niederwald Nixon Nixon Housing Authority Nocona Nocona Housing Authority Nolan CAD Nolan County Fresh Water District Nolanville Nome Noonday Nordheim Normangee Nortex Regional Planning Commission North Austin MUD #1 North Central Texas 911 District North Central Texas COG North Central Texas MWA North Channel Water Authority North Concho River SWCD North Green MUD North Houston District North Richland Hills North San Gabriel MUD #1 North San Gabriel MUD #2 North Texas ECC North Texas Tollway Authority North Zulch MUD Northampton MUD Northeast Gaines County ESD #1 Northeast Harris County MUD #1 Northeast Police Department Northeast Texas MWD Northeast Texas Public Health District Northeast Travis County UD Northeast TX Regional Mobility Authority Northlake Northtown MUD Northwest Grayson County WCID #1 Northwest Harris County MUD #20 Northwest Harris County MUD #22 Northwest Harris County MUD #29 Northwest Leon County ESD #3 Northwest Williamson County MUD #1 Northwest Williamson County MUD #2 Northwood MUD #1 Novice Nueces CAD Nueces County DD #2

Member MemberMember

81

Nueces County ESD #1 Nueces County ESD #4 Nueces County ESD #6 Nueces County WCID #3 Nueces County WCID #4 Nueces County WCID #5 Nueces/Jim Wells Counties ESD #5 O'Brien O'Donnell O'Donnell Housing Authority Oak Grove Oak Leaf Oak Point Oak Ridge (Cooke Co) Oak Ridge (Kaufman Co) Oak Ridge North Oakwood Ochiltree SWCD #142 Odem Odem Housing Authority Odessa Odessa Housing Authority Office of Urban Redevelopment-OUR SA Oglesby Oglesby Housing Authority Old River-Winfree Old Sixth Ward Redevelopment Authority Oldham CAD Olmos Park Olney Olney Housing Authority Olton Olton Housing Authority Omaha Omaha Housing Authority Onalaska Orange Orange CAD Orange Co ESD #2/Bridge City VFD Orange County ESD #1 Orange County ESD #3 Orange County ESD #4 Orange County Navigation/Port District Orange County WCID #1 Orange County WCID #2 Orange Grove Orange Housing Authority Orchard Ore City OST/Almeda Corridors Redevelopment Auth Overton Overton Housing Authority Ovilla Oyster Creek Paducah Paducah Housing Authority Paint Rock Palacios Palacios Housing Authority Palestine Palisades Village

Palm Valley Palmer Palmera Ridge MUD of Williamson County Palmhurst Palmview Palo Duro River Authority Palo Pinto Appraisal District Palo Pinto County MWD #1 Palo Pinto SWCD #518 Paloma Lake MUD #1 Paloma Lake MUD #2 Pampa Panhandle Panhandle Regional Planning Commission Panola CAD Panola County ESD #1 Panola County FWD #1 Panola SWCD #448 Panorama Village Pantego Paradise Paris Paris Housing Authority Paris-Lamar Co Pub Health Department Park Board of Trustees of Galveston Parker Parker CAD Parker County SWCD #558 Parklands MUD #1 Parkside at Mayfield Ranch MUD Parmer CAD Pasadena Paseo del Este MUD #1 Paseo del Este MUD #10 Paseo del Este MUD #11 Paseo del Este MUD #2 Paseo del Este MUD #3 Paseo del Este MUD #4 Paseo del Este MUD #5 Paseo del Este MUD #6 Paseo del Este MUD #7 Paseo del Este MUD #8 Paseo del Este MUD #9 Pattison Patton Village Payne Springs Pearland Pearsall Pearsall Housing Authority Peaster Pecan Bayou SWCD #553 Pecan Gap Pecan Hill Pecan Valley GCD Pecos Pecos CAD Pecos County WCID #1 Pecos County WID #2 Pecos County WID #3 Pecos Housing Authority Pedernales SWCD #218

Pelican Bay Penelope Penitas Permian Basin Regional Planning Comm Permian Basin UWCD Perryton Petersburg Housing Authority Petrolia Petronila Pettus MUD Pflugerville Pharr Pharr Housing Authority Phelps SUD Pilot Knob MUD #1 Pilot Knob MUD #2 Pilot Knob MUD #3 Pilot Knob MUD #4 Pilot Knob MUD #5 Pilot Point Pine Creek WID Pine Forest Pine Island Pinehurst Pineland Housing Authority Piney Point Village Pittsburg Pittsburg Housing Authority Plains Plainview Plainview Housing Authority Plainview/Hale County Airport Plano Housing Authority Plateau UWCSD Pleak Pleasant Valley Pleasanton Pleasanton Housing Authority Point Point Aquarius MUD Point Blank Point Comfort Point Housing Authority Point Venture Political Subdivision WC Alliance Polk Central Appraisal District Ponder Ponderosa Forest Utility District Ponderosa Joint Powers Agency Port Aransas Port Arthur Port Arthur Housing Authority Port Authority of San Antonio Port Isabel Port Isabel Housing Authority Port Isabel/San Benito Navigation Dist Port Lavaca Port Lavaca Housing Authority Port Neches Port O'Connor Improvement District Port of Corpus Christi Authority

Member MemberMember

82

Port of Harlingen Authority Port of Liberty Commission Porter SUD Portland Post Post Housing Authority Post Oak Bend Post Oak Savannah GCD Post Oak SUD Poteet Poteet Housing Authority Poth Potter-Randall Appraisal District Potter-Randall County ECD Pottsboro Poynor Prairie View Premont Presidential Glen MUD Presidio CAD Presidio County UWCD Primera Princeton Progreso Progreso Lakes Prosper Town of Providence Village Town of Public Employee Benefit Alliance Public Transit Services Putnam Pyote Quail Creek MUD Quail Valley UD Quanah Quanah Housing Authority Queen City Quinlan Quintana Quitaque Quitman Rains CAD Ralls Ralls Housing Authority Ranch at Clear Fork Creek MUD #1 Ranch at Clear Fork Creek MUD #2 Ranch at Cypress Creek MUD #1 Rancho Viejo Ranger Ranger Housing Authority Rankin Rankin Housing Authority Ransom Canyon Rayburn Country MUD Raymondville Reagan CAD Real CAD Real Edwards Cons/Recl District Red Bluff Water Power Control District Red Lick Red Oak Red River Authority of Texas

Red River CAD Red River County WCID #1 Red River SWCD Red Sands GCD Redwater Reeves CAD Reeves County ESD #1 Reeves County ESD #2 Reeves County GCD Reeves County WID #1 Reeves County WID #2 Refugio Refugio County WCID #1 Refugio GCD Regional Transportation Authority Reklaw Reno Reno (Parker County) Retreat Rhome Rice Richland Richland Hills Richland Springs Richland SUD Richmond Richwood Riesel Rio Bravo Rio Grande City Rio Grande COG Rio Grande Regional Water Authority Rio Hondo Rio Vista Rising Star Rising Star Housing Authority River Oaks River Place Limited District River Plantation MUD Riverside Riverside SUD Riviera WCID Roanoke Roaring Springs Robert Lee Robert Lee Housing Authority Robertson CAD Robinson Robstown Robstown Housing Authority Robstown Utility Systems Roby Roby Housing Authority Rochester Rockdale Rockdale Housing Authority Rockett SUD Rockport Rocksprings Rockwall Rockwall Housing Authority

Rocky Mound Rogers Rogers Housing Authority Rolling Creek UD Rolling Plains GCD Rolling Plains Memorial Hospital Dist Rollingwood Roma Roma Housing Authority Roman Forest Roman Forest PUD #3 Ropesville Roscoe Rose City Rose Hill Acres Rose Hill SUD Rosebud Rosebud Housing Authority Rosenberg Rosenberg Housing Authority Ross Rosser Rotan Rotan Housing Authority Round Mountain Round Rock Round Rock Housing Authority Round Top Town of Rowlett Roxton Royalwood MUD Royse City Royse City Housing Authority Rule Runaway Bay Runge Runge Housing Authority Runnels CAD Runnels County ESD #1 Runnels SWCD #232 Rural Economic Asst League Inc Rural Taylor County Aging Service Rusk Rusk County GCD Rusk County Rural Rail District Rusk Housing Authority Rusk SWCD #447 Sabinal Sabine/Neches Navigation District Sachse Sadler Sagemeadow Utility District Saginaw Saint George Pl Redev Auth Reinvest Z#1 Saint Hedwig Saint Jo Saint Paul Salado Salado Public Library District Salt Fork SWCD #133 Sam Rayburn Mun Power Agency

Member MemberMember

83

San Angelo San Angelo Housing Authority San Antonio San Antonio MUD #1 San Augustine San Augustine CAD San Augustine Housing Authority San Benito San Benito Housing Authority San Diego San Diego MUD #1 San Elizario San Felipe San Jacinto CAD San Jacinto County ESD San Jacinto SUD San Juan San Juan Housing Authority San Leanna San Leon MUD San Marcos San Marcos Housing Authority San Patricio San Patricio CAD San Patricio County GWCD San Patricio County Navigation Dist #1 San Patricio MWD San Perlita San Saba San Saba CAD San Saba Housing Authority San Saba SWCD #250 Sanctuary Sandhills SWCD #241 Sandy Oaks Sandy Point Sanford Sanger Sansom Park Santa Anna Santa Anna Housing Authority Santa Clara Santa Fe Santa Rita UWCD Santa Rosa Saratoga UWCD Savoy Schertz Schertz Housing Authority Schertz-Seguin Local Gov Corporation Schleicher County Hospital District Schulenburg Schulenburg Housing Authority Scotland Scurry Scurry CAD Seabrook Seadrift Seagoville Seagraves Seagraves Housing Authority

Sealy Sebastian MUD Seguin Seguin Housing Authority Seis Lagos UD Selma Seminole Senna Hills MUD Seven Oaks Seven Points Seymour Seymour Housing Authority Shackelford CAD Shady Grove SUD Shady Hollow MUD Shady Shores Shallowater Shamrock Shavano Park Shelby CAD Shelby County FWSD #1 Shelby County SWCD Sheldon Road MUD Shenandoah Shepherd Sherman Sherman CAD Sherman Housing Authority Shiner Shoreacres Siena MUD #1 Siena MUD #2 Siesta Shores WCID Silsbee Silverton Simonton Sinton Sinton Housing Authority Skellytown Slaton Slaton Housing Authority Smiley Smiley Housing Authority Smith CAD Smith County 911 Commisson District Smith County ESD #1 Smithville Smithville Housing Authority Smyer Snook Snyder Socorro Somerset Somervell Central Appraisal District Somervell County Hospital District Somervell County Water District Somerville Sonora Sonterra MUD Sour Lake South Central Calhoun County WCID

South East Texas RPC South Houston South Padre Island South Plains Association of Governments South Plains Public Health District South Plains Regional Housing Authority South Plains UWCD South Post Oak Redev Auth/TIRZ #9 South Rains SUD South Texas Development Council South Texas Water Authority South Texas Weather Modification Assoc Southeast Leon County ESD #1 Southeast Texas Groundwater Cons Dist Southeast Travis County MUD #1 Southeast Travis County MUD #2 Southeast Travis County MUD #3 Southeast Travis County MUD #4 Southeast Williamson County MUD #1 Southern Montgomery County MUD Southern Trinity GCD Southlake Southmayd Southmost Regional Water Authority Southside Place Southwest Area Regional Transit District Southwest Fannin SUD Southwest Houston Redevelopment Auth Southwest Management District Southwest Travis County GCD SPAN Inc Spearman Spearman Housing Authority Spencer Road PUD Splendora Spring Branch Spring Branch Mgmt District Spring Valley Springhollow MUD Springlake Springtown Spur Spur Housing Authority Spurger ESD #2 St George Place Management District ST PST Water Supply Stadium Park Redevelopment Authority Stafford Stagecoach Stamford Stamford Hospital District Stamford Housing Authority Stanton Stanton Housing Authority Staples Star Harbor STAR Transit Starr CAD Starr County Housing Authority Stephens CAD Stephenville

Member MemberMember

84

Sterling City Sterling County Appraisal District Sterling County UWCD Stinnett Stockdale Stockdale Housing Authority Stockton Bend Stonewall County Ambulance Service Stonewall Memorial Hospital District Stonewall Ranch MUD Stonewall SWCD #167 Stratford Strawn Strawn Housing Authority Streetman Sudan Sugar Land Sullivan City Sulphur Springs Sulphur-Cypress SWCD Sun Metro Sunbelt FWSD Sundown Sunnyvale Sunray Sunrise Beach Village Sunset Valley Surfside Beach Sutton CAD Sutton County UWCD Sweeny Sweetwater Sweetwater Housing Authority Swisher CAD Taft Taft Housing Authority Tahoka Tahoka Housing Authority Talco Talco Housing Authority Talty City of Talty SUD Tanglewood Forest Limited District Tara Glen MUD Tarkington SUD Tarrant County 911 District Tarrant County ESD #1 Tarrant County Hospital Dist-JPS Health Tatum Tatum Housing Authority Tax Increment Reinvestment Zone #11 Taylor Taylor CAD Taylor Housing Authority Taylor Lake Village Teague Teague Housing Authority Tehuacana Temple Temple Housing Authority Tenaha

Tenaha Housing Authority Terranova West MUD Terrell Terrell Hills Terry CAD Terry Memorial Hospital District Texana Groundwater Conservation District Texana MHMR Center Texarkana Texarkana Housing Authority Texarkana Urban Transit District Texarkana Water Utilities Texarkana-Bowie County Fam Health Clinic Texas Association of Regional Councils Texas City Texas City Housing Authority Texas City TIRZ #1/Lago Mar Dev Auth Texas Housing Foundation Texas Municipal Power Agency Texas Municipal Retirement System Texas Panhandle Centers Texhoma Texline Texoma Area Solid Waste Authority Texoma COG Texoma Housing Partners The Colony The Colony MUD #1A The Colony MUD #1B The Colony MUD #1C The Colony MUD #1D The Colony MUD #1E The Colony MUD #1F The Colony MUD #1G The Woodlands Township Thompsons Thorndale Thorndale Housing Authority Thornton Thorntonville Thrall Three Rivers Three Rivers Housing Authority Throckmorton Throckmorton Central Appraisal District Throckmorton Housing Authority Throckmorton SWCD #543 Tiki Island Timber Lane UD Timbercreek Canyon Village of Timpson Timpson Housing Authority Timpson Public Library Dist Tioga Titus CAD TML TML MultiState IEBP TMLIRP TMLIRP & TMLIEBP Toco Todd Mission

Tolar Tom Bean Tom Green CAD Tom Green County FWD #3 a MUD Tom Green SWCD Tomball Tool Towne Lake Management District Toyah Toyah-Limpia SWCD Travis Central Appraisal District Travis County ESD #1 Travis County ESD #8 Travis County Fire/Rescue ESD #11 Travis County Housing Authority Travis County MUD #11 Travis County MUD #12 Travis County MUD #13 Travis County MUD #14 Travis County MUD #17 Travis County MUD #2 Travis County MUD #23 Travis County MUD #24 Travis County MUD #3 Travis County MUD #4 Travis County MUD #5 Travis County MUD #6 Travis County MUD #7 Travis County MUD #8 Travis County MUD #9 Travis County WCID #10 Travis County WCID #17 Travis County WCID #18 Travis County WCID #19 Travis County WCID #20 Travis County WCID-Point Venture Travis-Creedmoor MUD Treasure Island MUD Trent Trenton Tres Lagos Public Improvement District TRI SUD Trinidad Trinidad Housing Authority Trinity Trinity Glen Rose GCD Trinity River Authority Trophy Club Trophy Club MUD #1 Troup Troy Tulia Tulia Housing Authority Turkey Tuscola Two Way SUD Tye Tyler CAD Tyler County ESD #1 Tyler County ESD #3 Tyler County ESD #4

Member MemberMember

85

Tyler County ESD #5 Tyler County ESD #7 Tyler County SUD Uhland Uncertain Union Grove Union Valley Universal City University Park Upper Brushy Creek WCID Upper Clear Fork SWCD Upper Guadalupe River Authority Upper Kirby Redev Auth TIRZ #19 Houston Upper Leon River MWD Upper Leon SWCD #525 Upper Llanos SWCD Upper Nueces Frio SWCD #238 Upper Pecos SWCD Upper Sabine SWCD Upper Trinity Regional Water District Upshur CAD Upshur County ESD #1 Upshur-Gregg County SWCD Upton CAD Upton County ESD #1 Upton County ESD #2 Upton County Water District #1 Urban Renewal Agency of City of Austin Uvalde Uvalde CAD Uvalde County UWCD Uvalde Housing Authority Val Verde CAD Valentine Valley International Airport Valley Mills Valley MUD #2 Valley View Van Van Alstyne Van Horn Van Horn Housing Authority Van Housing Authority Van Zandt CAD Van Zandt County ESD #2 Van Zandt County ESD #4 Varner Creek UD Vega Velasco Drainage District Venus Vernon Vernon Housing Authority Via Metropolitan Transit Victoria Victoria Central Appraisal District Victoria County GCD Victoria County WCID #2 Victoria Housing Authority Victoria SWCD #346 Vidor Village of The Hills

Vinton Vista MUD Vista Oaks MUD Volente Von Ormy Waco Waco Housing Authority Waelder Waelder Housing Authority Wake Village Walker CAD Walker County ESD #2 Walker County Housing Authority Walker County SUD Waller Waller County RID #1 Waller Creek Local Gov't Corp Wallis Walnut Creek SUD Walnut Springs Walsh Ranch MUD Ward CAD Ward County WID #2 Warren City Washington CAD Waskom Watauga Waterwood MUD #1 Waxahachie Waxahachie Housing Authority Weatherford Weatherford Housing Authority Webb CAD Webberville Webster Weimar Weinert Weir Wellington Wellington Housing Authority Wellman Wells Wells Branch Community Library Wes-Tex GCD Weslaco Weslaco Housing Authority West West Brazoria County DD #11 West Cedar Creek MUD West Central Texas COG West Columbia West Cypress Hills WCID #1 West Gregg SUD West Harris County MUD #10 West Harris County MUD #16 West Keegans Bayou Improvement District West Lake Hills West Nueces-Las Moras SWCD West Orange West Tawakoni West Texas Weather Modification Assoc

West Travis County MUD #6 West Travis County MUD #8 West Travis County Public Utility Agency West University Place West Williamson County MUD #1 West Wise SUD Westador MUD Westbank Comm Library District Westbrook Westchase District Westchase District Comm Fund Westlake Westminster SUD Weston Weston Lakes Weston MUD Westover Hills Westwood Shores MUD Westworth Village Wharton Wharton County ESD #3 Wheeler Wheeler CAD White Deer White Oak White Oak Bayou Joint Powers White River Municipal Water District White Rock SUD White Settlement Whiteface Whitehouse Whitesboro Whitesboro Housing Authority Whitewright Whitney Whitney Housing Authority Wichita Appraisal District Wichita Falls Wichita Falls Housing Authority Wichita-Wilbarger 911 Dist Wickett Wickson Creek SUD Wilbarger Creek MUD #1 Wilbarger Creek MUD #2 Willacy CAD Willacy Co Nav Dist/Port Mans PUD Willacy County Drainage District #1 Willacy County Housing Authority Williamson CAD Williamson County ESD #1 Williamson County ESD #4 Williamson County ESD #5 Williamson County MUD #10 Williamson County MUD #11 Williamson County MUD #12 Williamson County MUD #15 Williamson County MUD #16 Williamson County MUD #17 Williamson County MUD #19 Williamson County MUD #19A Williamson County MUD #19B

Member MemberMember

86

Williamson County MUD #19C Williamson County MUD #21 Williamson County MUD #22 Williamson County MUD #30 Williamson County MUD #31 Williamson County MUD #32 Williamson County MUD #34 Williamson County WCID #2 Williamson County WSIDD #3 Williamson County/Cities Health Dist Williamson/Travis County MUD #1 Willis Willow Creek WCD Willow Park Wills Point Wills Point Housing Authority Wilmer Wilson Wilson CAD Wimberley Wimberley Village Library District Windcrest Windom Windthorst

Winfield Wink Wink Housing Authority Winkler CAD Winnsboro Housing Authority Winona Wintergarden GCD Winters Winters Housing Authority Wise CAD Wise County WCID #1 Wise SWCD #548 Wixon Valley Wolfe City Wolfe City Housing Authority Wolfforth Wood CAD Wood County SWCD Wood Trace MUD #1 Woodbranch Village Woodcreek Woodcreek Reserve MUD Woodloch Woodridge MUD

Woodsboro Woodville Woodville Housing Authority Woodway Workforce Solutions for H O T Wortham Wortham Housing Authority Wylie Wylie Northeast SUD XS Ranch MUD Yantis Yoakum Yoakum CAD Yoakum Housing Authority York Creek Improvement District Yorktown Yorktown Housing Authority Young County SWCD Zapata CAD Zapata County WCID Zavala CAD Zavala County WCID #1 Zavalla

Key

AMD............... Area Management District CAD ................ County Appraisal District CCPD ............. Crime Control & Prevention District COG ................ Council of Governments DD .................. Drainage District ECD ................ Emergency Communication District EMS ................ Emergency Medical Services ESD................. Emergency Services District FWD .............. Fresh Water District FWSD ............ Fresh Water Supply District GCD ................ Groundwater Conservation District GWD .............. Groundwater District ID .................... Improvement District LID ................. Levee Improvement District MD .................. Management District MHMR .......... Mental Health/Mental Retardation MPEC............. Multi-Purpose Events Center MUD .............. Municipal Utility District MWA ............. Municipal Water Authority MWD ............. Municipal Water District MWSD........... Municipal Water Supply District

PUD .................. Public Utility District RA ..................... Redevelopment Authority RFPD ............... Rural Fire Prevention District RMA ................. Regional Mobility Authority RPC .................. Regional Planning Commission RSA ................... Regional Sewage Authority SUD .................. Special Utility District SWCD .............. Soil & Waste Conservation District SWMA ............. Solid Waste Management Agency TIRZ ................. Tax Increment Reinvestment Zone UWCD ............. Underground Water Conservation District UWCSD ........... Underground Water Conservation & Supply District VFD .................. Volunteer Fire Department WA .................... Water Authority WCD................. Water Conservation District WCID ............... Water Control & Improvement District WID .................. Watershed Improvement District WORD ............. Water Oriented Recreation District WSD ................. Water Supply District WSIDD ............ Water, Sewer, Irrigation & Drainage District

Member MemberMember

87


Corpus Christi Office400 Mann St. #708Corpus Christi, TX 78401361-814-1722Toll Free: 800-327-2780



















2018

* 2019

TMLIRP

ANNUAL

REPORT

2018-19 ANNUAL REPORT

TEXAS MUNICIPAL LEAGUEINTERGOVERNMENTAL RISK POOL

Date post:	22-Sep-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOLPlace2 Leo Montalvo McAllen Place 5 Carol Loughlin...

Documents