For City Council Meeting [December 14, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Arron Brown, Deputy City Manager
Title
Request City Council: (1) Adopt Resolution No. 7818 Amending its Budget for the 2021-2022 transferring $3,000,000 from General Fund reserves to the General Liability Fund and recognizing the $250,000 preliminary insurance payment received from the fire at the Public Works building.
(ACTION)
Body
BACKGROUND
The City's General Liability Fund is 100% self-funded by the City. The amount budget each year is based on historical trends and projected amounts based on our third-party actuarial report.
ANALYSIS/DISCUSSION
In the most recently actuarial report, the City's recommended claims payable recently increased from $2,946,823 to $5,078,397 for a total increase of $2,131,574. Staff recommends transferring funds from the General Fund reserve to the General Liability Fund to cover this increase in anticipated claims expenses.
Additionally, over the last several years, the City has seen an increase in payments made from the General Liability Fund. The current year is budgeted at $2,520,480.19 is already at 99% expensed. Staff recommends transferring funds from the General Fund reserve to the General Liability Fund to cover continuing claims to be paid out for the rest of the year.
Earlier this year there was a structural fire at the Public Works Administrative/Engineering building. The preliminary payment from our insurance carrier of $250,000 was received on October 15, 2021 and staff recommends increasing anticipated revenues and expenditures by this amount.
ENVIRONMENTAL IMPACT
The proposed action does not meet the definition of a project as defined by Section 15378 California Environmental Act (CEQA). A "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in th...
Click here for full text