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R-14-01-23-G6 - 1/23/2014RESOLUTION NO. R -14-01-23-G6 WHEREAS, the City Council has previously adopted the 2013-2014 Self -Funded Health Fund Budget, and WHEREAS, the City Council wishes to amend said budget in accordance with the attached proposal, Now Therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the 2013-2014 Self -Funded Health Fund Budget is amended as set forth in Exhibit "A" attached hereto and incorporated herein. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution 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. RESOLVED this 23rd day of January, 2014. ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA L. WHITE, City C erk 0112 1404; 00290141/rmc EXHIBIT City of Round Rock, Texas Self -Funded Health Insurance Fund Fiscal Year 2013-2014 2012-2013 2013-2014 2013-2014 Original Revised Revision #1 Self -Funded Health Insurance Fund Actual Budget Budget #1 Variance Revenues $ 8,435,777 $ 8,813,083 $ 9,144,165 $ 331,082 Expenditures (7,885,955) (9,314,500) (9,364,500) (50,000) Total Change in Fund Balance $ 549,822 $ (501,417) $ _20,335) $ 281,082 2012-2013 2013-2014 2013-2014 Original Revised Revision #1 Self -Funded Health Insurance Fund Actual Budget Budget #1 Variance Revenues $ 8,435,777 $ 8,813,083 $ 9,144,165 $ Expenditures 7,584,314 9,314,500 9,364,500 Transfers 301,641 - Total Expenditures $ 7,885,955 $ 9,314,500 $ 9,364,500 $ 50,000 331,082 50,000 Self -Funded Health Insurance Fund - Effect of the revision on fund balance: Fund Balance 10/01/13 $ 9,120,575 Less Reserves (*1) (6,567,086) Estimated Revenue (FY 2013-2014) 9,144,165 Interfund Transfers Total Funds Available Budgeted Expenditures (9,364,500) Estimated Unreserved Fund Balance 9/30/14 $ 2,333,154 11,697,654 * 1 Reserve requirements established in accordance with operating reserve policies. City of Round Rock Self -Funded Health Insurance Fund 2013-2014 Budget Description of Item 12-13 Actual 13-14 Original Budget 13-14 Revised Budget #1 Fund Balance 10/1/13 Less: Restricted for GASB 45 Funding Less: 15% Reserves REVENUES: Reinsurance Proceeds COBRA/Retiree Contributions Interest Income City/Employee Contributions - General Fund City/Employee Contributions - Utility Fund City/Employee Contributions - Hotel Fund City/Employee Contributions - Sports Complex City/Employee Contributions -- Drainage Total Revenues Total Funds Available EXPENDITURES: Wellness Programs Health Clinic Professional Services Administrative Fees Stop Loss/Reinsurance Fees Health Claims Dental Claims Vision Claims Prescription Claims Long Term Disability Life Insurance Total Expenditures Transfer to General Fund Transfer to Utility Fund Total Transfers Total Expenditures & Transfers Estimated Unreserved Fund Balance 9/30/14 based on 777 employees $ 8,570,753 $ (5,249,000) (1,285,613) 2,036,140 475,343 170,629 25,868 6,400,668 1,157,613 24,902 16,324 164,430 8,435,777 10,471,917 6,840,737 $ (5,249,000) (1,026,111) 565,626 250,000 175,000 15,000 6,897,203 1,252,440 23,940 55,860 143,640 8,813,083 9,378,709 9,120, 575 (5,199, 000) (1,368,086) 2,553,489 250,000 175,000 15,000 7,159,951 1,307,418 25,371 59,199 152,226 9,144,165 11,697,654 70,006 75,000 75,000 0 0 436,000 72,686 75,000 75,000 427,308 359,000 359,000 716,607 730,500 730,500 4,305,911 6,000,000 5,614,000 465,421 495,000 495,000 35,821 50,000 50,000 1,428,000 1,375,000 1,375,000 62,553 95,000 95,000 0 60,000 60,000 7,584,314 9,314,500 9,364,500 263,000 0 0 38,641 0 0 301,641 0 0 7,885,955 9,314,500 9,364,500 $ $2,585,962 $ $64,209 $ $2,333,154 /11/fr'.....- ROUND ROCK, TEXAS PURPOSE IMMIX( PlIDSPERITY City of Round Rock Agenda Item Summary Agenda Number: G.6 Title: Consider a resolution amending the Self -Funded Health Fund Budget for FY 2013-2014. Type: Resolution Governing Body: City Council Agenda Date: 1/23/2014 Dept Director: Cheryl Delaney, Finance Director Cost: Indexes: Attachments: Resolution, Exhibit A Department: Finance Department Text of Legislative File 14-1088 The original FY 2014 budget was approved by Council on October 10, 2013. The budget established the sources and uses activities of the City's health insurance needs. It continues to restrict funds related to GASB 45 (retiree health insurance benefits). This amendment recognizes the associated costs of $436,000 related to the establishement of an employee health clinic. These costs will be funded with savings to be realized from lower health claims to the City in the amount of $386,000. Approval City of Round Rock Page 1 Printed on 1/22/2014