REPORT TO THE CITY COUNCIL
June 13, 2019
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: MICHAEL PAYNE, Risk Manager
Personnel Services Department
SUBJECT
Title
***RESOLUTION - Approving the reallocation of $3,000,000 from the Liability Self-Insurance Fund Contingency to fund refunds and claims (Subject to Mayor's Veto)
Body
RECOMMENDATION
It is recommended that Council approve the attached Resolution which authorizes the reallocation of $3,000,000 from the Liability Self-Insurance Fund Contingency/Reserve account to the Refunds and Claims account to meet anticipated obligations through June 30, 2019.
EXECUTIVE SUMMARY
The Self-Insurance Fund, which provides the resources to pay claims and claims related expenses, includes a Contingency/Reserve which is typically utilized near the end of the fiscal year to allocate sufficient resources to pay claims and related expenses. The FY 2020 budget assumes this transfer and is built to replenish the Self-Insurance Retention (SIR) to the required $3,000,000.
BACKGROUND
The authorized FY 2019 appropriations in the Liability Self-Insurance fund total $10,081,800. This includes personnel, operations and maintenance expenses, interdepartmental charges, insurance claims and refunds, and a contingency reserve of $3,000,000. The contingency reserve is budgeted in the event the actual claims expenses associated are greater than the amount anticipated. Per previous Council preference, any transfer of contingency amounts to operating accounts is brought before Council for approval.
The refunds and claims appropriation of $5,336,700 for this fiscal year is less than what is required to cover expenses both already paid and projected to be paid through the end of the fiscal year. The majority of these expenditures have been approved by Council as part of settlement agreements made in connection with litigation. Per the authority granted under Part II, Section 3 of the Annual Appropriat...
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