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ITEM: RESOLUTION NO. R2015-13 FOR BUDGET AMENDMENT NO. 2015-016
RESOLUTION OF WELLINGTON, FLORIDA'S COUNCIL AMENDING GENERAL FUND RESERVE BALANCES FOR FISCAL YEAR 2015 BY COMMITTING MONIES FROM GENERAL FUND UNASSIGNED RESERVES TO THE GENERAL FUND INSURANCE RESERVE IN ACCORDANCE WITH F. S. 112.08 REQUIREMENTS FOR THE VILLAGE MEDICAL INSURANCE CONTRACT; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2015-13 for budget amendment No. 2015-016 to increase General Fund Insurance Reserves.
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EXPLANATION: Council approved the 2015 medical insurance plan agreement with Cigna Healthcare on October 28, 2014 (Resolution R2014-62). The October 28, 2014 agenda item disclosed the Fiscal Year 2015 budget's total medical insurance expenditures of approximately $4.37 million. The item also stated that based on the lowest cost health insurance option (Cigna Healthcare Minimum Premium Arrangement), the Village realized budget savings of approximately $300,000. Approval of the agenda item included approval of the Budget Amendment to transfer the savings into the Village's Insurance Reserves, previously established to offset the impacts of future premium increases.
This Budget Amendment formally makes this transfer with the insurance becoming effective as of January 1, 2015. 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 $821,000. The Village's established insurance reserve currently totals $440,000 and an additional $381,000 must be reserved to meet the required level. Approval of Resolution No. R2015-13 and accompanying Budget Amendment No. 2015-016 will assign the additional funds from General Fund Unrestricted Reserves to the Insurance Reserve.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING: ...
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