From
Lisa Norris, Human Resources Director
Title
Risk Fund Summary Review through April 21, 2020 - Lisa Norris, Human Resources Director
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Risk Fund through April 21, 2020:
Risk Fund Summary (Attachment 1):
The Risk Fund Summary is attached and does not have much notable experience at this time. The City Attorney's Office and Human Resources share in the review and operational control over this fund and its related expenses. As a reminder, the City Attorney's Office track claims related to Property, Liability, Casualty, Auto and all reimbursements received from the Insurance as well as having their team work subrogation efforts and recoveries. Human Resources tracks all of the other general expenses and specifically Workers' Compensation losses. However, it is a team effort overall in cost reduction efforts and education.
We should have a much better picture of actual expenses by the end of June as there were some invoice delays in processing and with COVID-19 occurring since February, many buildings being currently either closed or employees telecommuting, the picture is anything but full at this time. Of course, our essential workers and front line employees have continued to remain working such as Public Works, Fire, Police, Jail, Dispatchers, Finance, Human Resources etc., but we expect claims to be very low at this time from a workers compensation perspective.
Revenues:
1) You will note on rows 8 and 9, column 3 versus 4 that our actual expenses currently are very low, but our year-end projection remains at budget. This is due to the fact that these line items are very unpredictable. We expect to have losses and recoveries from our Administrator (TML), but none right now.
Expenses:
1) On row 24, Auto-Related Losses, those are also very low right now. However, accidents with just a few vehicles requiring replacement or repairs can jump that up quickly, so we estimated beneath budget just slightly for year-end (blue column) at $500,098.
2) On row 29, Property Losses, those also are currently low, but we are entering storm season. Typically we will have wind and/or hail damage during April and May, but have been fairly lucky so far on weather related damage.
There is nothing else notable at this time. By then end of June, for our FY 2020-2021 Proposed budget review, we should have a little bit clearer picture of how the year is progressing from a projection standpoint, and as we propose the next year's budget.
Financial Consideration
The current budget is approved and no financial consideration is necessary at this time until additional claims data based on future months can be reviewed.