A N N U A L R E P O R T 2 0 1 2

SPEciALizEd iNSURANcE

PROdUcTS ANd SERvicES

SiNcE 1974

Jeffrey W. Horrockscommissioner, Emery county

Trust Board of directorsExecutive committee

PROTEcTiNg PUBLic ASSETS.

THiS iS THE TRUST.

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211 Cities and Towns 11 Counties 299 Special Service Districts

PROTEcTiNg

Daggett County Mosquito Abatement DistrictDaggett Water DistrictDaniel TownDavis and Weber County Canal CompanyDavis Community Housing AuthorityDavis County Mosquito Abatement DistrictDavis-Salt Lake Aerial Spray AuthorityDavis Soil Conservation DistrictDelta CityDeseret Oasis Special Service DistrictDeweyville TownDixie Deer Water Special Service DistrictDuchesne CityDuchesne Conservation DistrictDuchesne County Economic DevelopmentDuchesne County Mosquito Abatement DistrictDuchesne County Water Conservancy District

Eagle Mountain CityEast Carbon CityEast Duchesne Culinary Water Improvement DistrictEast Riverton Drainage DistrictEast Zion Special Service DistrictEastland Community Special Service DistrictEden Park Service DistrictElk Meadows Special Service DistrictElk Ridge CityElmo TownElsinore TownElwood TownEmery County

Emery County Fire Protection DistrictEmery County Housing AuthorityEmery County Nursing HomeEmery County Recreation DistrictEmery County Special Service District #1Emery TownEmery Water Conservancy DistrictEnoch CityEnterprise CityEnterprise Valley Medical ClinicEphraim Ambulance AssociationEphraim CityEureka City

Fairfield TownFairview CityFarmington CityFarr West CityFayette TownFerron CityFielding Cemetery Maintenance DistrictFielding TownFillmore CityFive County Association of GovernmentsFlaming Gorge Road and Transportation Special Service DistrictFountain Green CityFour Corners Community Behavioral HealthFrancis TownFreedom AcademyFruit Heights City

Fruitland Special Service District

Garden City Cemetery Maintenance DistrictGarden City Fire DistrictGarden City TownGarland CityGenola TownGlen Canyon Special Service DistrictGlendale TownGlenwood TownGoshen TownGrand CountyGrand County Cemetery Maintenance DistrictGrand County Recreation Special Service DistrictGrand County Transportation Special Service DistrictGrand Soil Conservation DistrictGrand Water and Sewer Service AgencyGrantsville CityGrantsville Conservation DistrictGrantsville Soil Conservation DistrictGreen Hills East Water Sewer Improvement DistrictGreen River CityGreen River Conservation DistrictGrouse Creek Solid Waste Special Service DistrictGunlock Special Service DistrictGunnison CityGunnison Valley Hospital

Hanksville TownHanna Water and Sewer DistrictHarrisville City

Alpine CityAlta Canyon Sports CenterAlta TownAltamont TownAlton TownAmalga TownAngell Springs Special Service DistrictAnnabella TownAntimony TownApple Valley TownAsh Creek Special Service DistrictAshley Valley Sewer Management BoardAshley Valley Water and Sewer Improvement DistrictAurora City

Ballard TownBallard Water Improvement DistrictBear Lake Special Service DistrictBear River Association of GovernmentsBear River CityBear River CommissionBear River Health DepartmentBear River Mental HealthBear River Water Conservancy DistrictBeaver CityBeaver County Special Service District #5Beaver Valley HospitalBenchland Water CompanyBenson Culinary Water Improvement DistrictBicknell Town

Big Cottonwood Canyon Improvement DistrictBig Plains Water and SewerBig Water Municipal Corp.Blanding Cemetery Maintenance DistrictBlanding CityBluff Service AreaBluff Water Works Special Service DistrictBluffdale CityBona Vista Water Improvement DistrictBox Elder County Special Service Area #1Box Elder County/Willard FloodBox Elder Mosquito Abatement DistrictBrian Head Town

Cache CountyCache County Emergency Medical Service AuthorityCache Metro Planning OrganizationCache Mosquito Abatement DistrictCache Valley Transit DistrictCannonville TownCanyon Land Improvement DistrictCanyonlands Health Care Special Service DistrictCarbon CountyCarbon County Conservancy DistrictCarbon County Recreation/Transportation Special Service DistrictCastle Dale CityCastle Valley Special Service DistrictCastle Valley TownCedar City

Cedar City Housing Authority Cedar Fort TownCedar Hills CityCedarview-Montwell Special Service DistrictCenterfield TownCenterville CityCentral Box Elder Fire Special Service DistrictCentral Davis Sewer DistrictCentral Iron County Water Conservancy DistrictCentral Utah Counseling CenterCentral Utah Public Health DepartmentCentral Valley TownCharleston TownChurch Wells Special Service DistrictCircleville TownClarkston TownClawson TownCleveland TownClinton CityCoalville CityCollege-Young Mosquito Abatement DistrictColor Country Community HousingCopperton Improvement DistrictCorinne CityCorinne Drainage DistrictCornish TownCottonwood Heights CityCottonwood Heights Parks and RecreationCottonwood Improvement District Council on Aging-Golden Age CenterCrescent Cemetery

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MEET THE TRUST MEMBERSHiP

LiABiLiTY / WORKERS cOMPENSATiON / PROPERTY / BONdS / LiFE ANd HEALTH 6

Hatch TownHeber CityHeber Valley Special Service DistrictHelper CityHenefer TownHenrieville TownHerriman CityHideout TownHighland CityHildale CityHinckley TownHolden TownHolladay CityHoneyville CityHooper CityHooper Water Improvement DistrictHousing Authority of Carbon CountyHousing Authority of Salt Lake CityHousing Authority of Salt Lake CountyHousing Authority of Utah CountyHowell TownHuntington CityHuntsville CityHurricane CityHurricane Redevelopment AgencyHyde Park Cemetery DistrictHyde Park CityHyrum City

Indian Ridge Water Conservancy DistrictIntermountain Power Agency

Ivins City

Jensen Water Improvement DistrictJohnson Water Improvement DistrictJordan River CommissionJoseph TownJunction Town

Kamas CityKanab CityKanarraville TownKane County Human Resource Special Service DistrictKane County Task ForceKane County Water Conservancy DistrictKanosh TownKearns Improvement DistrictKingston TownKoosharem Town

La Sal Recreation Service DistrictLake Point Cemetery and Parks Service AreaLake Point Improvement DistrictLaketown City Fire and CemeteryLaVerkin CityLeamington TownLeeds Area Special Service District Leeds TownLehi CityLevan TownLewiston City

Lindon CityLogan CityLone Peak Public Safety DistrictLyman TownLynndyl Town

Maeser Water Improvement DistrictMagna Mosquito Abatement DistrictMagna Water DistrictManila Town Manti Ambulance AssociationManti CityMantua TownMapleton CityMarriott-Slaterville CityMarysvale TownMayfield TownMendon CityMetro Fire AgencyMexican Hat Special Service DistrictMidvale CityMidvalley Improvement DistrictMilford City Milford Valley HospitalMilitary Installation Development AuthorityMillard Conservation DistrictMillville CityMinersville TownMoab CityMoab Mosquito Abatement DistrictMoab Valley Fire Protection District

Mona CityMonroe CityMonticello CityMorgan CityMorgan City Redevelopment AgencyMorgan Conservation DistrictMorgan CountyMoroni City Mountain Green Fire ProtectionMountain Green Sewer Improvement DistrictMountain Meadow Special Service DistrictMountain Regional Water Special Service DistrictMountainland Association of GovernmentsMt Pleasant CityMunicipal Building Authority of Vernal CityMutton Hollow Improvement DistrictMyton CityMyton City Housing Authority

Naples CityNeola Community Park DistrictNeola Water and Sewer DistrictNephi CityNew Harmony TownNew Harmony Valley Special Service DistrictNewton TownNibley CityNorth Davis County Sewer DistrictNorth Davis Fire DistrictNorth Fork Special Service DistrictNorth Logan City

North Pointe Solid Waste Special Service DistrictNorth Salt Lake CityNorth Sanpete AmbulanceNorth Sevier RecreationNorth Summit Fire Protection DistrictNorth Summit Recreation Special Service DistrictNorth Tooele Special Service DistrictNorth Utah Valley Animal ServicesNorth View Fire DistrictNorthern Utah Regional Landfill Authority

Oak CityOakley CityOgden Valley Recreation Transmission Special Service DistrictOquirrh Mountain Water CompanyOquirrh Recreation/Parks DistrictOrangeville CityOrderville Town

Panguitch CityParadise TownParagonah TownPark City Fire Service DistrictParowan CityPaunsaugunt Cliffs Special Service DistrictPayson CityPeoa Recreation Special Service DistrictPerry CityPerry-Willard Wastewater Treatment PlantPine Meadow Mutual Water Company

Pine Valley Local Administrative DistrictPine Valley Special Service DistrictPioneer Special Service DistrictPlain CityPleasant Grove City Pleasant View City Plymouth TownPortage TownPowder Mountain Water and Sewer Improvement DistrictPrice CityPrice River Water Improvement DistrictPrice River Watershed Conservation DistrictProvidence CityProvo Housing Authority

Randolph Fire DistrictRandolph TownRecreation and Transportation Special Service DistrictRedmond TownRichfield CityRichmond Cemetery Maintenance DistrictRichmond CityRiver Heights CityRiverdale CityRiverside Cemetery Maintenance DistrictRiverside Community Special Service DistrictRiverton CityRockville TownRockville/Springdale Fire Protection DistrictRocky Ridge Town

MEET THE TRUST MEMBERSHiP

LiABiLiTY / WORKERS cOMPENSATiON / PROPERTY / BONdS / LiFE ANd HEALTH

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Trenton TownTridell-Lapoint Water Improvement DistrictTropic Town

Uintah Animal Control and Shelter Special Service DistrictUintah Basin Assistance CouncilUintah Basin Association of GovernmentsUintah Basin Narcotics StrikeUintah Care CenterUintah CityUintah CountyUintah County/Vernal InterlocalUintah Fire Suppression Special Service DistrictUintah Health Care Special Service DistrictUintah Highlands Improvement DistrictUintah Impact Mitigation Special Service DistrictUintah Mosquito Abatement DistrictUintah Recreation DistrictUintah Transportation Special Service DistrictUintah Water Conservancy DistrictUnified Fire AuthorityUpper Country Water Improvement DistrictUtah Association of Conservation DistrictsUtah Association of CountiesUtah Association of Special Service DistrictsUtah Chiefs of Police AssociationUtah CountyUtah League of Cities and Towns Utah Local Governments TrustUtah Local Governments Trust Board

Utah Municipal Finance #2Utah Municipal Finance Co-opUtah Municipal Power AgencyUtah Valley Dispatch Special Service DistrictUTOPIA

Vernal CityVernon Town Vernon Water Works Special Service DistrictVineyard TownVirgin Town

Wales TownWanship Cemetery Maintenance DistrictWarren/West Warren Water Improvement DistrictWasatch CountyWasatch County Fire Protection Special Service DistrictWasatch Front Regional CouncilWasatch Integrated Waste ManagementWasatch Mental Health Services Special Service DistrictWashington CityWashington County Economic Development CouncilWashington County Water Conservancy DistrictWashington Terrace CityWayne CountyWayne County MedicalWeber Basin Water Conservancy District

Weber County Housing AuthorityWeber County Service Area #5 Liberty ParkWeber Human Services Weber Mosquito Abatement DistrictWeber/Morgan Narcotics Strike ForceWeber Soil Conservation District Wellington CityWellsville CityWendover CityWest Bountiful CityWest Corinne Water CompanyWest Haven CityWest Haven Special Service District West Millard Mosquito Abatement DistrictWest Point CityWest Warren Community ParkWestern Kane County Special Service District #1Western States Water CouncilWhite City Water Improvement DistrictWhite Hills Special Service DistrictWillard CityWolf Creek Water and Sewer Improvement DistrictWoodland Hills CityWoodruff Cemetery Maintenance DistrictWoodruff Fire DistrictWoodruff TownWoods Cross CityWoods Cross City Redevelopment Agency

Roosevelt CityRoosevelt City Housing Authority Roy Water Conservancy District Rural Water Association of UtahRush Valley Town

Salem CitySalina CitySalt Lake City Mosquito Abatement DistrictSalt Lake Conservation DistrictSalt Lake County Service Area #3Salt Lake Urban Search and RescueSalt Lake Valley Fire Service AreaSandy CitySandy Suburban Improvement DistrictSan Juan Conservation DistrictSan Juan Counseling Mental HealthSan Juan County TransportationSan Juan County Water Conservancy DistrictSan Juan CountySan Juan Spanish Valley Water and Sewer Special Service DistrictSanpete Conservation DistrictSanpete County Fire Special Service DistrictSan Rafael Conservation DistrictSanta Clara CitySantaquin CitySaratoga Springs CityScipio TownScofield Reservoir Special Service DistrictScofield Town

Sevier Conservation DistrictSevier County Special Service District #1Sigurd TownSix County Association of GovernmentsSkyline Mountain Special Service DistrictSmithfield City Corp.Snowville TownSnyderville Basin Recreation DistrictSnyderville Basin Water Reclamation DistrictSolid Waste Special Service District #1South Davis Sewer DistrictSouth Davis Water DistrictSoutheastern Association of GovernmentsSouthern Utah Shooting Sports ParkSouthern Utah Valley Power SystemsSouth Ogden CitySouth Salt Lake Valley Mosquito Abatement DistrictSouth Summit Cemetery MaintenanceSouth Utah Valley Electric Service DistrictSouth Valley Animal Special Service DistrictSouth Valley Sewer DistrictSouth Valley Water Reclamation FacilitySouth Weber CitySouth Weber Water Improvement DistrictSouthwestern Special Service DistrictSouthwest Mosquito Abatement and ControlSpanish Fork CitySpring CitySpringdale TownSt. George CitySt. George Housing Authority

Stansbury Park Improvement DistrictStansbury Service AgencySterling TownStockton TownSugar House Park AuthoritySummit CountySummit County Service Area #3Summit Mosquito AbatementSunnyside CitySunset City CorporationSyracuse City

Tabby Valley Parks and Recreation Special Service DistrictTabiona TownTaylor/West Weber WaterTaylorsville CityTeasdale Special Service DistrictThatcher/Penrose Fire DepartmentThompson Special Service DistrictTicaboo Special Service DistrictTicaboo Utility Improvement DistrictTimberline Special Service DistrictTimpanogos Special Service DistrictTooele CityTooele Valley Mosquito Abatement DistrictToquerville CityTorrey TownTrans-Jordan CitiesTremonton CityTremonton/Garland Drainage District

LiABiLiTY / WORKERS cOMPENSATiON / PROPERTY / BONdS / LiFE ANd HEALTH

MEET THE TRUST MEMBERSHiP

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gary L. HatchManager, davis county MosquitoAbatement district

Trust Board of directorsExecutive committee

THE LAW OF LARgE NUMBERS —

iT’S iN YOUR FAvOR. THiS iS THE TRUST.

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We welcome 10 new members to Utah’s premier governmental insurance pool: comprised of cities and towns, counties, and special service districts. A fundamental principle of insurance is the law of large numbers. Your participation strengthens 500 plus members joined to safeguard precious public resources. We leverage size to reduce costs, expand services, and to broaden coverage – providing more for less. At the same time, we increase the spread of risk resulting in more protection and more security for members. Our exceptional results paint the picture.

Among other things, the Trust insures more than $3 billion in property values and provides hundreds of millions in general liability and workers compensation protection. The structure of our pool provides this protection and benefits members by allowing us to tailor coverage to meet needs.

When it comes to insurance, we know you have options. We listen to you and we partner with you to deliver results and to earn your loyalty. At the end of the day, member retention tells the story best – running at nearly 100% for six years. The common thread in our success is your commitment to our partnership and to the principle of the law of large numbers. Thank you for placing your confidence with the Trust. We’re the finest pool in the state of Utah and among the finest in the country. We pledge continued operational expertise, transparency, accountability, and progressive leadership.

—Steven A. Hansen, President and CEO, Utah Local Governments Trust

2012 MARKS THE EigHTH cONSEcUTivE YEAR OF

UNPREcEdENTEd gROWTH ANd SUccESS FOR THE TRUST.

”“The Trust insures more than $3 billion in property

values and provides hundreds of millions in general liability and workers compensation protection.

PRESidENT’S MESSAgE

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THE UTAH LOcAL gOvERNMENTS TRUST WAS ORgANizEd iN 1974.

iT WAS TiME SOMEONE STEPPEd UP.

Started with $112,745 and a dedicated team of public servants, the Trust has grown from 16 members to over 500 – more than doubling in size over the past five years. We provide the best products and services at the best price possible. We partner with members and work together to reduce injury and loss. As public fiduciaries we protect and preserve public resources.

As of December 31, 2012, the Trust holds $81,160,409 in assets. Trust member equity is $47,447,546. Superior financial strength allows us to expand coverage and services. This strong position allows us to withstand volatile markets, stabilize premium, and reduce economic uncertainty for members.

THE TRUST

cHOicE / TRANSPARENcY / AccOUNTABiLiTY 16

Each member of our team has extensive academic and field qualifications – including professional designations of: ARM, ARM-P, CIH, and CPSI. We help members develop and strengthen a culture of safety and accountability. We partner with members top down – fully recognizing that executive leadership and executive commitment to accountability are key to reducing loss and preventing injury. With executive buy-in and a culture of accountability, safety and loss prevention initiatives yield results. More than 150 members have earned the Trust’s Excellence in Risk Management Certification (ERMC). Many are working towards the ERMC. This program provides broad-based training in risk management and helps members become skilled in loss prevention measures. Here’s what one member said, “I didn’t realize how much impact I could make by being more accountable. I just want to make sure I don’t spend the rest of my life knowing that a serious injury may have been avoided if only I’d done something.”

SNOW PLOWS TO FiRE ENgiNES, icY SidEWALKS TO

SEWER SYSTEMS, WE’vE gOT YOU cOvEREd.

LOSS PREvENTiON

cHOicE / TRANSPARENcY / AccOUNTABiLiTY 18

We handle claims with commitment, transparency, and accountability. We look to provide coverage. We protect member resources by promptly paying claims for which members are liable. We protect member resources by vigorously defending claims for which members are not liable. We value members’ insight, feelings, and perspective. We communicate throughout the claims process and provide information and tools to keep members informed.

Members value meaningful and accurate information. We invest heavily in technology to meet member needs. Members receive summary claims information showing the latest developments. Members have access to the Mobile Risk Manager App for the iPhone and iPad. These tools provide real-time information on claims activity for all lines of insurance, including adjuster notes. We’re committed to leveraging the best technology available to keep you informed.

WHAT dOES iT MEAN TO BE A TRUSTEd FidUciARY?

iT MEANS WE’vE gOT YOUR BAcK.

cHOicE / TRANSPARENcY / AccOUNTABiLiTY

cLAiMS HANdLiNg

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JoAnn B. SeghiniMayor, Midvale city

Trust Board of directorsExecutive committee

THERE’S BEiNg cOvEREd, ANd THEN

THERE’S BEiNg TAKEN cARE OF. THiS iS THE TRUST.

ASSETS 2012 2011

$ 202,166

19,114,309

453,137 386,867

55,277 3,744

22,995 762,881

$ 21,001,376

50,235,244 3,998,166

701,867 4,585,909

112,552 525,295

$ 60,159,033

$ 81,160,409

$ 3,780,215

17,218,920

616,986373,828

93,57534,100

109,579 843,674

$ 23,070,877

44,371,824 1,998,575

1,137,362 2,722,833

- 525,295

$ 50,755,889

$ 73,826,766

F i N A N c i A L S TAT E M E N T S

current assets:CashInvestment in State of Utah PublicTreasurers’ Investment Fund Receivables: Premiums Investment income Administrative fees Reinsurance recoverable on paid claims Other Prepaid reinsurance premiums

total current assets

non-current assets:Investment in debt securities Investment in debt securities held by state treasurer Capital assets: Land and construction in progress Depreciable, net of accumulated depreciation Deposit with Constitution State Services LLC Deposit with NLC Mutual Insurance Company

total non-current assets

total assets

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current liabilities:Estimated unpaid claims and claimsadjustment expensesUnearned premiumsAccounts payable and accrued expenses State premium tax payable

total current liabilities

non-current liabilities:

Estimated unpaid claims and claims adjustment expenses, net of current portion

total liabilities

Invested in capital assets Unrestricted

total net position

LiABiLiTiES REvENUES & EXPENSES

NET POSiTiON

2012 2011

operating revenues:Gross premiums earned Reinsurance premiums

net premiums earned

operating revenues:Administrative fees Other revenue

total operating revenues

operating expenses:Claims and claims adjustment expenses State premium tax expense General and administrative expenses

total operating expenses

operating income (loss)

non-operating revenues:Investment income Other income

total non-operating revenues

change in net position

net position at beginning of year, as restated

net position at end of year

2012 2011

We honor our fiduciary responsibility —financial strength guarantees our ability to deliver on our promises in times of need. The financial statements shown in this

report are derived from the Trust’s audited financial statements for 2012 and do not include notes. A complete audited financial statement can be obtained from the Trust upon request.

$ 11,525,3486,002,268 1,452,863

76,430

$ 19,056,909

12,435,261

$ 31,492,170

$ 20,672,586 (2,984,554)

$ 17,688,032

658,745 2,255

$ 18,349,032

11,175,780 468,318

3,595,959

$ 15,240,057

$ 3,108,975

1,820,479 183,496

$ 2,003,975

$ 5,112,950

$ 42,334,596

$ 47,447,546

$ 19,049,023 (3,271,856)

$ 15,777,167

869,959 2,212

$ 16,649,338

12,264,377 607,143

3,859,453

$ 16,730,973

$ (81,635)

3,521,813 1,108,717

$ 4,630,530

$ 4,548,895

$ 37,785,701

$ 42,334,596

$ 11,472,2216,549,254

783,38757,102

$ 18,861,964

14,850,899

$ 33,712,863

$ 5,287,77642,159,770

$ 47,447,546

$ 3,860,19538,474,401

$ 42,334,596

Steven A. Hansenpresident and ceo

AdMiNiSTRATivE SUPPORT

Marilynn BeesleyExecutive Assistant

AccOUNTiNg

Jody Pettet Manager

Jessa Anderson Accounts Payable

Denise Fowler Accounts Receivable

cLAiMS

Chris RozelleManager

MEMBER SERvicES TEAM

Travis Garton Manager

Jill Johnson Account Manager

Suzie Pope Account Manager

MEMBERSHiP dEvELOPMENT TEAM

Ryan Hatch Manager

Greg Baumgartner Account Executive

Josh McKell Account Executive

Darin Palmer Account Executive

LOSS PREvENTiON

Jason WattersonManager

Doug Folsom Consultant

Lance Mergens Consultant

iNFORMATiON TEcHNOLOgY

Brady LovelandTechnician

BOARd OF diREcTORS TRUST STAFF

TEAMWORK / dEdicATiON / PASSiON

Joe L. Piccolochair, executive committeeMayor, Price City

JoAnn B. Seghiniexecutive committee Mayor, Midvale City

Gary L. Hatchexecutive committeeManager, Davis County Mosquito Abatement District

Jeffrey W. Horrocksexecutive committeeCommissioner, Emery County

Todd S. BeutlerGeneral Manager, Cache Valley Transit District

Blake L. FrazierAuditor, Summit County

W. Dean HowardMayor, Hyrum City

E. Kent SundbergCivil Division Chief, Utah County Appointed

Russell D. WallDirector, Public Works and Regional Development, Salt Lake County Appointed

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Joe L. PiccoloMayor, Price city

Trust Board of directors chairExecutive committee

PROTEcTiNg YOUR BUdgET ON THE

FRONT ENd ANd THE BAcK. THiS iS THE TRUST.

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55 South Highway 89

North Salt Lake, UT 84054

tel: 801.936.6400

toll: 800.748.4440

www.utahtrust.gov