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NOTES TO THE FINANCIAL STATEMENTS (Continued)
<br /> The Agreement specifies a term of existence of 50 years; however, the Agreement cannot be terminated until
<br /> all revenue bonds issued and interest thereon have been paid oh full or adequately provided for. Upon
<br /> termination of the Agreement, title to all properties of the Authority shall be conveyed to the State, the County
<br /> and the City, as applicable.
<br /> On September 23, 1988, the Big Independent Cities Excess Pool (BICEP) was created under a Joint Powers
<br /> Agreement between the cities of Huntington Beach, Oxnard, Pomona, San Bernardino and Santa Ana with
<br /> participating interests of 21.43%, 15.62%, 13.59%, 19.09% and 30.27% respectively. The purpose of this
<br /> agreement is to jointly develop and fund excess insurance for comprehensive liability, the purchase of
<br /> reinsurance, and the provision of nerecsary administrative services. Such administrative services may include,
<br /> but shall not be limited to,risk management consulting,loss prevention and control,centralized loss reporting,
<br /> actuarial consulting, claims adjusting and legal defense service. BICEP is governed by a five-member Board
<br /> of Directors representing each member city, appointed by the member's City Council and serving at the
<br /> pleasure of such City Council. The City of Santa Ana does not have oversight responsibility over BICEP.
<br /> Summary unaudited financial information of BICEP for the year ended June 30, 1993, is as follows:
<br /> City of
<br /> Total Santa Ma's
<br /> Description Joint Venture Share
<br /> Total Assets $ 17,988,490 $ 5,445,116
<br /> Total Liabilities 17,988,490 5,445,116
<br /> Total Revenues 4,010,361 1,216,936
<br /> Total Expenditures 4,010,361 1,213,936
<br /> This agreement may be terminated at any time provided that no bonds or other obligations of BICEP are
<br /> outstanding. Upon termination of this Agreement all assets of BICEP shall(after payment of all unpaid costs,
<br /> expenses and charges incurred under this Agreement), be distributed among the parties in accordance with
<br /> the respective contributions of each.
<br /> 8B. Deferred Compensation Plan. The City offers its employees a deferred compensation plan created in
<br /> accordance with Internal Revenue Code Section 457. The plan, available to all full-time City employees,
<br /> permits them to defer a portion of their salary until future years.
<br /> Also, in compliance with Section 3121(6)(7)(F)of the Internal Revenue Code, the City has set-up a deferred
<br /> compensation plan for all its part-time employees. Each eligible employee shall contribute 3.75% of his
<br /> earned compensation and the City contributes an equal amount to the plan. Contributions made on behalf of
<br /> the participant for the taxable year shall not exceed the lesser of$7,500 or 33-1/2% of the participant's
<br /> compensation for that taxable year.
<br /> The deferred compensation is not available to employees until termination, retirement, death,or unforeseeable
<br /> emergency.
<br /> All amounts of compensation deferred under the plan, all property and rights purchased with those amounts,
<br /> and all income attributable to those amounts, property, or rights are until paid or made available to the
<br /> employee or other beneficiary, solely the property and right of the City, without being restricted to the
<br /> provisions of benefits under the plan, subject only to the claim of the City's general creditors. Participants'
<br />
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