HomeMy WebLinkAbout149 - 12/17/1996 - APPROPRIATING PRIOR YEAR RESERVES TO COVER MEDICAL INSURANCE CLAIMS ORDINANCE NO. 149, 1996
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING 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 administration of 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, over the past five 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 than budgeted claims expense; and
WHEREAS, in 1996, several unusually large medical claims have been submitted due to
employee and employee's dependents catastrophic illnesses; and
WHEREAS, the total of these extraordinary claims will exceed the amount budgeted for
claims expense in the 1996 Benefits Fund; and
WHEREAS, staff is recommending that an additional $1,000,000 be appropriated from prior
year reserves in the Benefits Fund, and be used to cover medical claims expenses for 1996; and
WHEREAS, said funds are available in medical insurance reserves within the Benefits Fund,
and appropriating $1,000,000 from said reserves will leave 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$1,000,000 from prior
year reserves in the Benefits Fund to be used to cover excess medical claims in 1996; and
WHEREAS, Article V, Section 7 of the Charter of the City of Fort Collins authorizes the
City Council to provide by ordinance for payment of any expense from reserves accumulated in prior
years notwithstanding that such reserves were not appropriated for expenditure in the Annual
Appropriation Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Benefits
Fund the sum of ONE MILLION DOLLARS ($1,000,000) to be used to cover medical claims
submitted in 1996.
Introduced, considered favorably on first reading, and ordered published this 3rd day of
December, A.D. 1996, and to be presented for final passage on,the day of December;"A.0 l
1996.
ATTEST:
City Clerk
Passed and adopted on final reading this 17th day of Dece er, A.D. 1996.
ayor
ATTEST:
Ala
City Clerk