G-10-11-09-9A2 - 11/9/2010ORDINANCE NO.
-t 'U-O<i,���{-2._
AN ORDINANCE ADOPTING A BUDGET FOR THE SELF-FUNDED
HEALTH INSURANCE FUND FOR THE 2010-2011 FISCAL YEAR.
WHEREAS, the Finance Department has submitted a proposed budget for the Self -
Funded Health Insurance Fund for fiscal year 2010-2011, 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 2010-2011, 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 day of a If
2010.
READ, APPROVED and ADOPTED on second reading this the t;ti day of
OUNT, 2010.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
C9P441A__. Vaakt-
SARA L. WHITE, City Secretary
O:\wdox\SCC1nts\0112\1005\MUNICIPAL\00205702.DOC/rmc
City of Round Rock
Self -Funded Health Insurance Fund
2010-2011 Proposed Budget
Description of Item
09-10
Approved
Budget
09-10
Estimated
Actuals
10-11
Proposed
Budget
Fund Balance 10/1/10
Less: Restricted for GASB 45 Funding
Less: 20% Reserves
REVENUES:
Reinsurance Proceeds
COBRA/Retiree Contributions
Interest Income
Miscellaneous Revenue
City/Employee Contributions -
City/Employee Contributions -
City/Employee Contributions -
City/Employee Contributions -
Total Revenues
Total Funds Available
EXPENDITURES:
Wellness Programs
Professional Services
Administratvie Fees
Stop Loss/Reinsurance Fees
Health Claims
Dental Claims
Vision Claims
Prescription Claims
Total Expenditures
Transfer to General Fund
Transfer to Utility Fund
Total Transfers
General Fund
Utility Fund
Hotel Fund
Hotel Fund
Total Expenditures & Transfers
$10,050,436
(4,000,000)
(2,010,087)
4,040,349
250,000
120,000
100,000
0
6,550,000
1,150, 000
25,020
0
8,195,020
10,368,284
(4,000,000)
(2,073,657)
4,294,627
776,850
159,285
36,131
57,430
5,825,125
1,057,019
26,880
0
7,938,719
$10,495,332
(4,000,000)
(2,099,066)
4,396,265
250,000
150,000
35,000
0
6,153,075
1,155, 744
25,000
127,602
7,896,421
12, 235, 369 12, 233, 346 12, 292, 686
3,500
87,000
365,000
960,000
5,000,000
385,000
96,000
1,400,000
8,296,500
934,400
127,915
1,062,315
9,358,815
2,142
72,915
364,486
769,437
3,871,321
375,676
80,006
1,213,374
6,749,356
934,400
127,915
1,062,315
7,811,671
10,000
77,000
365,000
875,500
5,000,000
400,000
96,000
1,450,000
8,273,500
759,240
103,934
863,174
9,136,674
Estimated Unreserved Fund Balance 9/30/10 $2,876,554 $4,421,675 $3,156,012
EXHIBIT
„A„
•
City of Round Rock
Self -Funded Health Insurance Fund
2010-2011 Proposed Budget
Description of Item
09-10
Approved
Budget
09-10
Estimated
Actuals
10-11
Proposed
Budget
Fund Balance 10/1/10
Less: Restricted for GASB 45 Funding
Less: 20% Reserves
REVENUES:
Reinsurance Proceeds
COBRA/Retiree Contributions
Interest Income
Miscellaneous Revenue
City/Employee Contributions -
City/Employee Contributions -
City/Employee Contributions -
City/Employee Contributions -
Total Revenues
Total Funds Available
EXPENDITURES:
Wellness Programs
Professional Services
Administratvie Fees
Stop Loss/Reinsurance Fees
Health Claims
Dental Claims
Vision Claims
Prescription Claims
Total Expenditures
Transfer to General Fund
Transfer to Utility Fund
Total Transfers
Total Expenditures & Transfers
General Fund
Utility Fund
Hotel Fund
Hotel Fund
$10,050,436
(4,000,000)
(2,010,087)
4,040,349
250,000
120,000
100,000
0
6,550,000
1,150, 000
25,020
0
8,195, 020
10,368,284
(4,000,000)
(2,073,657)
4,294,627
776,850
159,285
36,131
57,430
5,825,125
1,057,019
26,880
0
7,938,719
$10,495,332
(4,000,000)
(2,099,066)
4,396,265
250,000
150,000
35,000
0
6,153,075
1,155,744
25,000
127,602
7,896,421
12,235, 369 12,233,346 12,292,686
3,500
87,000
365,000
960,000
5,000,000
385,000
96,000
1,400,000
8,296,500
934,400
127,915
1,062,315
9,358,815
Estimated Unreserved Fund Balance 9/30/10 $2,876,554
2,142
72,915
364,486
769,437
3,871, 321
375,676
80,006
1,213, 374
6,749,356
934,400
127,915
1,062,315
7,811,671
10,000
77,000
365,000
875,500
5,000,000
400,000
96,000
1,450,000
8,273,500
759,240
103,934
863,174
9,136,674
$4,421,675 $3,156,012
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY.
City Council Agenda Summary Sheet
Agenda Item No. *9A2.
Consider an ordinance adopting the 2010 — 2011 Self -Funded Health Insurance Fund
Agenda Caption: Budget. (Second Reading)
Meeting Date: November 9, 2010
Department: Finance
Staff Person making presentation: Cheryl Delaney
Finance Director
Item Summary:
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 $ 860,000 of available funds to the operating budgets to fund
the City's portion of retirement contributions. These funds will be used to fund the variance between our current
contribution rate and the full rate. We began a plan to transfer funds at a reduced amount over a four year period.
This is the second year of that plan. By 2013 operating funds will be able to fully fund the required contribution.
Strategic Plan Relevance:
8.0 — Maintain and enhance public confidence, satisfaction and trust in City Government
Cost:
Source of Funds:
N/A
N/A
Date of Public Hearing (if required): N/A
Recommended Action: Approval