HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/1999 - FIRST READING OF ORDINANCE NO. 176, 1999, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 15
DATE: November 16, 1999
• FORT COLLINS CITY COUNCIL STAFF:
Rick DeLacastro
SUBJECT:
First Reading of Ordinance No. 176, 1999, Appropriating Unanticipated Revenue in the Benefits
Fund to Cover Medical Insurance Claims and Other Expenses.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
This Ordinance increases the 1999 Benefits Fund appropriations by$250,000 to cover medical claim
costs and other benefit expenses. Funding for these appropriations is comprised of unanticipated
revenue in the Benefits Fund, and does not require an appropriation from prior year reserves.
Current budget projections indicate that revenues will exceed expenditures by approximately
$650,000 in 1999. However,projected Benefit Fund expenditures will exceed previously estimated
expenditures by approximately$250,000.
EXECUTIVE SUMMARY:
This Ordinance appropriates revenue received in the Benefit Fund to cover estimated costs of
medical claims and benefit expenses in 1999. The remaining$400,000 in revenues received in the
Benefit Fund will be retained to augment plan reserves for future unanticipated medical claims. In
addition, changes are being made to the 2000 benefit plans to increase revenues from employee
contributions. This change is expected to furtber enhance the Benefit Fund reserves standing.
. ORDINANCE NO. 176, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE BENEFITS FUND
TO COVER MEDICAL INSURANCE CLAIMS AND OTHER EXPENSES
WHEREAS,the City of Fort Collins,through the Benefits Fund, provides employees with
a full flexible benefit package including choices in insurance plans for health, life, vision, dental,
long-term disability,and accidental death and dismemberment insurance;health care and dependent
care reimbursement accounts; employee assistance program; and other benefits; and
WHEREAS,the City is self-insured for employee health care benefits, collecting revenues
associated with providing medical insurance to employees and budgets for the payment of all
medical insurance claims, including administration costs for claims processing; and
WHEREAS,for 1999,Benefits Fund expenditures are projected to exceed the appropriations
budgeted by $250,000, and revenues collected are projected to exceed estimated revenue by
$350,000; and
WHEREAS, staff is recommending that an additional $250,000 be appropriated from
unanticipated revenue in the Benefits Fund to be used to cover the additional expenditures projected
through year-end; and
• WHEREAS,Article V, Section 9, of the Charter of the City of Fort Collins (the"Charter")
permits the City Council to make supplemental appropriations by ordinance at any time during the
fiscal year,provided that the total amount of such appropriations, in combination with all previous
appropriations for that fiscal year,do not exceed the then current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, it is the desire of City Council to appropriate the sum of $250,000 from
unanticipated revenue in the Benefits Fund to be used to cover the additional expenditures projected
through year-end 1999.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from unanticipated revenue in the
Benefits Fund, the sum of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000),
representing Benefits Fund revenue received,in excess of projections,to be used to cover additional
expenditures projected through year-end 1999.
•
Introduced, considered favorably on first reading, and ordered published this l6th day of
November,A.D. 1999,and to be presented for final passage on the 7th day of December,A.D. 1999.
Mayor Pro Tent
ATTEST:
City Clerk
Passed and adopted on final reading this 17th day of December,A.D. 1999.
Mayor
ATTEST:
City Clerk
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