HomeMy WebLinkAbout144 - 10/15/2002 - APPROPRIATING UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES IN THE BENEFITS FUND TO BE USED TO COVER ORDINANCE NO. 144, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE AND
PRIOR YEAR RESERVES IN THE BENEFITS FUND
TO BE USED TO COVER MEDICAL 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 employee benefits; and
WHEREAS,the City is self-insured for employee health care benefits, collecting revenues
associated with providing medical, dental, and employee-paid vision benefits to employees and
budgets for the payment of all medical insurance claims, including administration costs for claims
processing; and
WHEREAS, the City's Benefits Fund is sufficiently funded to cover claims and
administration costs,and adequate reserves are maintained for use in the event that fund expenditures
exceed the revenues received in the fund; and
WHEREAS, staff projects that 2002 Benefits Fund expenditures could exceed budgeted
appropriations in the Benefits Fund by $1.6 million; and
WHEREAS, the aforementioned overages are due to higher than expected medical claims
activity, including numerous catastrophic claims thus far in 2002, and significant increases in
administrative expenses, that were not anticipated at the time the budget was adopted; and
WHEREAS, staff has identified unanticipated revenue, from fees, charges, and interest
earnings, in the Benefits Fund that exceeds budget estimates ($900,000), and prior year reserves in
the Benefits Fund($700,000),to be used to fund the need for additional appropriations,totaling$1.6
million; and
WHEREAS,an appropriation of$700,000 from prior year reserves within the Benefits Fund
still leaves reserves funded at a level within the guidelines recommended by the City's benefits
consultant; 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 supplemental appropriations,in combination with
all previous appropriations for that fiscal year, does 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; and
WHEREAS, City staff has determined that the appropriation of funds from unanticipated
revenue as described herein will not cause the total amount appropriated in the Benefits Fund to
exceed the current estimate of actual and anticipated revenues to be received during any fiscal year;
and
WHEREAS, it is the desire of the Council to appropriate the sum of $900,000 in
unanticipated Benefits Fund revenue, and the sum of $700,000 from Benefits Fund prior year
reserves to fund 2002 unanticipated Benefits Fund expenditures.
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 unanticipated revenue
in the Benefits Fund, the sum of NINE HUNDRED THOUSAND DOLLARS($900,000), to fund
2002 unanticipated Benefits Fund expenditures.
Section 2. That there is hereby appropriated from prior year reserves in the Benefits
Fund, the sum of SEVEN HUNDRED THOUSAND DOLLARS ($700,000) to fund 2002
unanticipated Benefits Fund expenditures.
Introduced and considered favorably on first reading and ordered published this 1 st day of
October A.D. 2002 and to be resented for final assa e on theWhda of
p p gy October, A.D. 2002.
M yor
ATTEST:
UA
City Clerk
Passed and adopted on final reading this 15th day of October, A.D. 2002.
Mayor
ATTEST:
a LL)0-�.
City Clerk �