SUBJECT:
Title
Insurance Fund - Insurance - $944,947
Body
|
INITIATOR: |
DEPARTMENT: |
|
Bobbi Perez, Director |
Human Resources/Risk |
DESCRIPTION/BACKGROUND:
Risk has incurred General Liability and Auto Liability claim costs that are higher than anticipated, including several settlements, and the ongoing monthly expenses associated with our contractually required Third-Party Administrator were not incorporated into the original budget appropriation. To resolve the resulting shortfall, the Reserve for Self-Insurance Claims account has been identified as the appropriate source for a one-time transfer, which is expected to fully cover all remaining FY 2025-26 claim obligations absent any catastrophic events.
Future budget estimates have been updated to better reflect claim activity based on the current fiscal year, with the goal of avoiding similar transfer requests going forward. While Risk claim volumes can never be predicted with complete accuracy, next year’s projections are now more representative of actual costs experienced.
BUDGET/IMPACT:
Neutral
RECOMMENDED ACTION:
Recommended action
Approve attached Budget Amendment Resolution.
end