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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: lm� a � City Clerk