From
Lisa Norris, Human Resources Director
Title
Ordinance amending the FY 2015/2016 Employee Insurance Operating Budget by an incremental amount of $338,439 and the Risk Management Operating Budget by an incremental amount of $219,309 for a total amendment of $557,748
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
Employee Insurance Fund: The Employee Insurance Fund is monitored monthly by the Human Resources Department, along with monthly presentations to the Finance and Government Committee. The fund captures all expenses and revenues related to employee and retiree benefits, administration costs and fees, claims, and wellness related items. The fund faced a difficult fiscal year resultant from higher than normal claims in our active population. The high costs and overages on the appropriations required an incremental budget amended on September 20, 2016 in the amount of $2,384,087 based on projections for year-end at that time. However, high costs worsened by the fiscal closing period, causing the fund to exceed the initial projection and requiring this final amendment to the Employee Insurance Fund Budget as reflected on Attachment 1. Based on final numbers, the ending resource balance has decreased from $3,165,816 at the beginning of the fiscal year to $2,198,958 at fiscal year-end. This amendment results in a new "Ending Resources" balance that will be carried over and require an amendment to the "Beginning Resources"in the FY 2016/2017 which is reflected in a separate ordinance on this agenda.
Risk Fund: The Risk fund is monitored routinely by the Human Resources and Legal Departments, with quarterly presentations to the Finance and Government Committee. This fund captures expenses related to claim costs and insurance or subrogation recovereies resultant from damage and loss to the city's buildings, automobiles and equipment, liability for officials and staff, as well as costs from work-related injuries to staff. With heavy storms, flooding and loss of revenue in our park systems resultant from these weather incidents, damage to property and automobiles hit hard. In total, this caused the necessity to modify the Risk Fund for the incremental increase of $219,309 for those greater than projected losses. However, due to the greater than projected revenues recovered from insurance reimbursements, the Ending Resources increased from our original projection of $1,764,455 to $2,515,097 by year-end. This amendment requires a change to the FY 2016/2017 Risk Fund "Beginning Resource" number which is reflected in a separate ordinance on this agenda.
These incremental amendments recommended herein were discussed and reviewed by The Finance and Government Committee on November 1, 2016 and recommended for approval.
Financial Consideration
Funding for the FY 2015/2016 Employee Insurance Fund budget appropriation amendment is available by drawing down the contingency reserve amount of $338,439 and by approving an ordinance increasing the appropriations to the FY 2015/2016 by $338,439. Total expenditures for FY 2015/2016 is $20,350,850, thereby modifying the Ending Resource Balance to $2,198,958. See Attachment 1 for details.
Funding for the FY 2015/2016 Risk Management Fund budget appropriation amendment is available by approving an ordinance transferring and appropriating $219,309 from the unobligated fund balance to modify total expenditure appropriations to $4,324,513, thereby resulting in the change to the Ending Resource Balance of $2,515,097. See Attachment 2 for details.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2015/2016 EMPLOYEE INSURANCE FUND BY TRANSFERRING AND APPROPRIATING $338,439 FROM THE CONTINGENCY RESERVE TO MODIFY TOTAL EXPENDITURE APPROPRIATIONS TO $20,350,850 AND THE FY 2015/2016 RISK MANAGEMENT FUND BY TRANSFERRING AND APPROPRIATING $219,309 FROM THE UNOBLIGATED FUND BALANCE TO MODIFY TOTAL EXPENDITURE APPROPRIATIONS TO $4,324,513
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. That the FY 2015/2016 Employee Insurance Fund be amended by transferring and appropriating $338,439 from the contingency reserve to modify total expenditure appropriations to $20,350,850.
SECTION 2. That the FY 2015/2016 Risk Management Fund be amended by transferring and appropriating $219,309 from the unobligated fund balance to modify total expenditure appropriations to $4,324,513.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 13TH DAY OF December, 2016.