HomeMy WebLinkAbout217 - 12/15/1998 - APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE IN THE BENEFITS FUND TO COVER MEDICAL IN ORDINANCE NO. 21 7, 1998
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND
UNANTICIPATED REVENUE IN THE BENEFITS FUND
TO COVER MEDICAL INSURANCE CLAIMS
WHEREAS,the City of Fort Collins is self-insured for all its medical insurance plan options
available to employees; and
WHEREAS, through the City's Benefits Fund. the City provides for the collection of
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 the second consecutive year, several claims in excess of the stop loss
attachment point have been submitted due to catastrophic illnesses and injuries of employees and
their dependents; and
WHEREAS, these extraordinary, unpredictable medical claims will exceed the claims
expense budgeted in the 1998 Benefits Fund; and
WHEREAS, staff is recommending that an additional $699,851 be appropriated from prior
year reserves in the Benefits Fund,and that$400,000 be appropriated from reimbursements received
from the City's reinsurance(stop loss)carrier,to be used to cover medical claims expenses for 1998;
and
WHEREAS,Article V, Section 9, of the Charter of the City of Fort Collins (the "Charter")
permits the City Council to appropriate by ordinance at any time during the fiscal year such funds
for expenditure as may be available from reserves accumulated in prior years,notwithstanding that
such reserves were not previously appropriated; and
WHEREAS, Article V, Section 9, of the Charter also 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.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That there is hereby appropriated for expenditure from prior year reserves in
the Benefits Fund,the sum of SIX HUNDRED NINETY-NINE THOUSAND EIGHT HUNDRED
FIFTY-ONE DOLLARS ($699,851) to be used to cover medical claims submitted in 1998.
Section 2. That there is hereby appropriated for expenditure from unanticipated revenue
in the Benefits Fund, the sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000),
representing reimbursement from the City's stop loss carrier, to be used to cover medical claims
submitted in 1998.
Introduced, considered favorably on first reading, and ordered published this 1 st day of
December, A.D. 1998, and to be presented for final passage on the 15th day of December, A.D.
1998. _
Mayor Pro Tern
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of Qv m�er, A.D. 1998.
ayor
ATTEST:
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City Clerk