HomeMy WebLinkAbout142 - 10/21/1997 - APPROPRIATING UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES IN THE BENEFITS FUND TO COVER MEDICAL IN ORDINANCE NO. 142, 1997
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE AND
PRIOR YEAR RESERVES IN THE BENEFITS FUND
TO COVER MEDICAL INSURANCE CLAIMS
WHEREAS, the City of Fort Collins is self-insured for all of 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,in past years,the City's health plan has been adequately funded to cover claims
and administration costs as well as establishing a reserve account to be used should costs be greater
that budgeted claims expense; and
WHEREAS, in 1997, several excessive claims have been submitted due to employees' and
employee's dependents' catastrophic illnesses and injuries; and
WHEREAS, these extraordinary, unpredictable medical claims submitted will exceed the
claims expense budgeted in the 1997 Benefits Fund; and
WHEREAS, staff is recommending an additional $450,000 be appropriated from prior year
reserves in the Benefits Fund, and$150,000 be appropriated from fees and charges above what was
estimated in the original 1997 budget, to be used to cover medical claims expenses for 1997; and
WHEREAS, said funds are available in medical insurance reserves within the Benefits Fund
and appropriating $450,000 from said reserves still leaves the reserve funded at a level within the
guidelines recommended by the City's Benefits Consultant; and
WHEREAS, it is the desire of City Council to appropriate the sum of$450,000 from prior
year reserves in the Benefits Fund and $150,000 from unanticipated revenue to be used to cover
excess medical claims in 1997; 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,Article V, Section 9,of the Charter also 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.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That that there is hereby appropriated for expenditure from prior year reserves
in the Benefits Fund the sum of FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000)
to be used to cover medical claims submitted in 1997.
Section 2. That there is hereby appropriated for expenditure from unanticipated revenue
in the Benefits Fund, the sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000),
representing fees and charges revenues in excess of the amounts budgeted for 1997, to be used to
cover medical claims submitted in 1997.
Introduced, considered favorably on first reading, and ordered published this 7th day of
October, A.D. 1997, and to be presented for final passage on the 21-st clay of October, A a.--1-997.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 21 st day of O er,;A.D. 1997.
i
Mayor
ATTEST:
City Clerk