Title
Ordinance in the Amount of $2,500,000 Amending FY 13/14 Risk Retention Fund to Provide Sufficient Appropriations for Year End
Body
Department: Financial and Administrative Services
Council District: n/a
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Marlene Druga, Deputy Finance Director, 373-2094
Contact 2 and Phone: Bonnie Harvell, Financial Reporting Manager, 373-2271
PURPOSE:
To appropriate funds to ensure that the Risk Retention Fund has sufficient budgeted appropriations for risk retention claims and associated costs remaining to be paid in the current fiscal year.
BACKGROUND:
The Risk Retention Fund accounts for the liability claims expense and the liability claims administration incurred by the organization, expenses such as General Liability claims, Automobile Liability claims, Public Official Liability claims, Law Enforcement claims and related legal fees. The fund is supported through internal charges assessed to the various operating funds within the organization based on claims history.
A budget amendment to increase the total appropriations of the Risk Retention Fund by $2.5 million is needed to ensure that sufficient appropriations are available for all remaining expenses during the FY 13-14 year, which are estimated to be in the range of $4.0 million to $4.5 million. The proposed budget amendment will increase current year fund appropriations from $2,007,303 to $4,507,303. The increased expenses are largely due to an increase in Police Department claims and the related legal fees and administrative fees.
BUDGET IMPACT:
The increased appropriations of $2,500,000 will be funded from appropriated fund balance.
RECOMMENDATION / ACTION REQUESTED:
Financial and Administrative Services requests City Council approval of the attached budget ordinance amending the FY2013-14 General Risk Retention Fund by $2,500,000.