ITEM: RESOLUTION NO. 2016-12 (FOR BUDGET AMENDMENT NO. 2016-014)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL AMENDING GENERAL FUND RESERVE BALANCES FOR FISCAL YEAR 2016 BY COMMITTING MONIES FROM GENERAL FUND UNASSIGNED RESERVES TO THE GENERAL FUND INSURANCE RESERVE IN ACCORDANCE WITH STATUTORY REQUIREMENTS FOR THE VILLAGE MEDICAL INSURANCE CONTRACT; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. 2016-12 for Budget Amendment 2016-014 to increase the General Fund Insurance Reserves by $329,000 pursuant to F.S. 112.08.
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EXPLANATION: Council approved the 2016 medical insurance plan agreement with Cigna Healthcare on November 10, 2015 (Resolution 2015-91). The November 10th agenda item presented the Fiscal Year 2016 total medical insurance premiums of approximately $4.64 million. Approval of the agenda item requires a Budget Amendment to reassign additional fund balance to the Village’s Insurance Reserves, established to offset the impacts of future premium increases.
This Budget Amendment formally makes this reserve assignment. The self-insurance feature of the agreement is governed by F.S. 112.08 requiring government agencies to hold reserves equal to at least 60 days of claims. The estimated amount to be reserved by Wellington is $1,150,000. The Village’s established insurance reserve currently totals $821,000 and an additional $329,000 must be reserved to meet the required level. Approval of Resolution No. 2016-12 and accompanying Budget Amendment will assign the additional funds from General Fund Unassigned Reserves to the Insurance Reserve.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: N/A
FISCAL IMPACT: There is no net fiscal impact of assigning General Fund Unassigned Reserves to the Insurance Reserve.
WELLINGTON FUNDAMENTAL: Protecting Our Investment
RECOMMENDATION: Approval of Resolution No. R2016-12 for Budget Amendment 2016-014 to increase the General Fund Insurance Reserves by $329,000 pursuant to F.S. 112.08.