From
Lisa Norris, Human Resources Director
Title
Quarterly Risk Fund Review
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Review
Analysis
Risk Fund (Attachment, page 1): The Risk fund finished the year well, ending with a positive operating balance of $1,802,280 (green column, row 49). Notable items we have discussed impacting the fund this year are as follows:
- Revenues came in at $4,783,182 (green column, row 14) - about $2.1 over the modified budget of $2,658,133. This was resultant from Insurance Recoveries (row 9) received of $1.58 million for the year.
- These insurance recoveries were primarily from the current and prior year's losses related to hail storms and flooding.
- Expenditures for the year totaled $3,389,850 (green column, row 39), which as $701,474 over the budgeted amount of $2,688,376. Primary losses shown in the green column 3 (versus the budgeted column 2) were in "Auto related losses" row 24 and "Property Losses" in row 29.
- We were able to use a substantial amount of one-time money to fund safety equipment, security updates and city-wide repairs for several of our departments as shown in rows 40-44. Safety items included one-man barricades in Streets; dive gear, electrical extractor, EMS jackets, SCBA gear, stretchers and thermal imaging cameras for Fire, along with a few other items. We are fortunate to be able to use Risk funds for some of these one-time purchases that help our departments and staff stay safe and reduce injuries.
Workers Compensation (Attachment pages 2-4): Overall, our total workers compensation occurances/incidents have increased over last year, but the good news is that severity decreased to $2,638 on average per claim. Workers compensation total costs paid out in fiscal year 15/16 versus 14/15 decreased slightly by 3 percent from $292,199 to $284,472.
Liability and Property (Attachment pages 5-6):
Liability and Auto-Property costs for the fourth quarter of fiscal year 2016 are down significantly as compared to the same quarter in years 2015 and 2014 as shown in the top half of slide 5. Slide 5 demonstrates losses by departments for the current and prior year. Overall, fiscal year 2016 Liability and Property costs were also down as compared to the totals from 2015. Slide 6 shows notable losses by department impacting costs. Mona Lisa Galicia in the City Attorney's Office handles property and liability losses and can provide any specific details desired for any notable losses in question.
Funds Recovered (page 7):
In-House collections (yellow section) ended strong for the year at $94,523, with collections in the fourth quarter reaching $6,729. While slightly lower than the prior year, this is exceptional and brings in money to this fund that otherwise would not be there. We are proud of our City Attorney's Office and their hard to make these collections from items that are beneath our deductibles. Insurance reimbursements (pink section) from TML for property and mobile equipment combined exceeded two million dollars by year-end!
Storm Repair Costs and Reimbursements Summary (page 7):
Our City Attorney's Office has provided the Storm cost summary to reflect current loss incidents being tracked and related recoveries. Mona may again speak to any questions regarding this summary.
Financial Consideration
None. Information only.