G-09-10-22-10C3 - 10/22/2009ORDINANCE NO. C-01' (e)- 22-01
AN ORDINANCE ADOPTING A BUDGET FOR THE SELF-FUNDED
HEALTH INSURANCE FUND FOR THE 2009-2010 FISCAL YEAR.
WHEREAS, the Finance Department has submitted a proposed
budget for the Self -Funded Health Insurance Fund for fiscal year
2009-2010, Now Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
That the budget submitted by the Finance Department for the
Self Funded Health Insurance Fund for fiscal year 2009-2010,
attached hereto as Exhibit "A", is hereby approved.
The City Council hereby finds and declares that written
notice of the date, hour, place and subject of the meeting at
which this Ordinance was adopted was posted and that such
meeting was open to the public as required by law at all times
during which this Ordinance and the subject matter hereof were
discussed, considered and formally acted upon, all as required
by the Open Meetings Act, Chapter 551, Texas Government Code, as
amended.
READ and APPROVED on first reading this the S day of
Li'l��, -
, 2009.
READ, APPROVED and ADOPTED on second reading this the
day of , 2009.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
la*
SARA L. WHITE, City Secretary
0:\wdox\SCC1nts\0112\0905\MUNICIPAL\091008B4.DOC/rmc
City of Round Rock
Self -Funded Health Insurance Fund
2009-2010 Proposed Budget
Description of Item
08-09 08-09 09-10
Approved Estimated Proposed
Budget Actuals Budget
Fund Balance 10/1/09
Less: Restricted for GASB 45 Funding
Less: 20% Reserves
$9,959,725
(4,000,000)
(1,991,945)
3,967,780
9,959,725
(4,000,000)
(1,991,945)
$10,050,436
(4,000,000)
(2,010,087)
3,967,780 4,040,349
REVENUES:
Reinsurance Proceeds 125,000 490,098 250,000
COBRA/Retiree Contributions 145,000 141,320 120,000
Interest Income 250,000 91,289 100,000
Miscellaneous Revenue 15,000 51,308 0
City/Employee Contributions - General Fund 6,810,512 6,324,778 6,550,000
City/Employee Contributions - Utility Fund 1,283,371 1,131,257 1,150,000
City/Employee Contributions - Hotel Fund 28,356 31,230 25,020
Total Revenues 8,657,239 8,261,280 8,195,020
Total Funds Available 12,625,018 12,229,060 12,235,369
EXPENDITURES:
Race Across Texas
Professional Services
Administratvie Fees
Stop Loss/Reinsurance Fees
Health Claims
Dental Claims
Vision Claims
Prescription Claims
3,750
90,000
420,000
1,040, 000
4,000,000
385,000
80,000
1,275,000
Total Expenditures 7,293,750
Transfer to General Fund
Transfer to Utility Fund
Total Transfers
1,020,000
180,000
1,200,000
3,495
84,890
415,746
878,798
3,995,238
347,601
78,483
1,166,318
3,500
87,000
365,000
960,000
5,000,000
385,000
96,000
1,400,000
6,970,569 8,296,500
1,020,000
180,000
934,400
127,915
1,200,000 1,062,315
Estimated Unreserved Fund Balance 9/30/10 $4,131,268 $4,058,491 $2,876,554
EXHIBIT
:I
a
DATE: October 15, 2009
SUBJECT: City Council Meeting — October 22, 2009
ITEM: *10C3. Consider an ordinance adopting the FY 2009-2010 Self -Funded Health Insurance
Fund Budget. (Second Reading)
Department:
Staff Person:
Justification:
Finance
Cheryl Delaney, Finance Director
This fund accounts for the activities of the City's health insurance needs. This ordinance will establish a
budget for sources and uses related to this fund. It will continue to restrict funds related to GASB 45
(retiree health insurance benefits) and allocate funds to the operating departments for City's retirement
program (TMRS).
GASB 45: Restricts $4M in fund balance to fund the retiree health insurance benefit liability.
Texas Municipal Retirement System (TMRS): Allocates $1.06M of available funds to the operating
budgets to fund the City's portion of retirement contributions.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information:
GASB 45 requires governmental employers to calculate and report the funding status of post
employment benefits other than pensions (OPEB). The City is required to calculate and publish the costs
of these benefits. Restricting these funds will satisfy bond rating agencies and provide the flexibility to
reevaluate the use of funds in the future.
In 2008, TMRS elected to change the actuarial cost method which caused the City's contribution rate to
significantly increase. The City has a choice to phase in over several years or contribute at the full rate.
We currently have the funds available in the health fund to allow for the city to contribute at the full
rate. The $1.06M used from the health fund will be the variance between our current contribution rate
and the full rate. We plan to transfer funds at a reduced amount over a four year period. By 2012
operating budgets will be able to fully fund the required contribution.
Public Comment: N/A