HomeMy WebLinkAbout2004 09 20 Consent 201
COMMISSION AGENDA
ITEM 201
CONSENT X
INFORMATIONAL
PUBLIC HEARING
REGULAR
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Septembe0, 2004
Meeting
MGR ~fDEPT Y!!itJ
Authorization
REQUEST: The Finance Department is requesting that the City Commission authorize a
Supplemental Appropriation in the amount of $50,000 from the General Fund
Reserves, to bring the General Services - Risk Management: General Insurance
Settlements budget to a total of $125,000 for Fiscal Year 2003-2004.
PURPOSE: The purpose of this Agenda item is requesting that the City Commission authorize a
Supplemental Appropriation. in the amount of $50,000 from the General Fund
Reserves, to bring the budget the General Services - Risk Management: General
Insurance Settlements budget to a total of $125,000 for Fiscal Year 2003-2004.
CONSIDERATIONS: Each year, funds are budgeted for Insurance Settlements in the General
Services - Risk Management Division. Since Fiscal Year 1999-2000, the budget has
ranged from $70,000 to $75,000. The City has no idea how many insurance claims
may occur each year or how long it may take to process and finalize a claim. Since
Fiscal Year 1999-2000, the actual insurance settlement amounts each year have been
as follows:
Fiscal Year
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
Actual Expenses
$ 55,520
$ 58,037
$ 89,231
$ 13,806
$125,000 (ESTIMATE)
As you can see, these amounts can vary from year to year. Due to the number of
claims combined with the City's deductible amount of $25,000 per occurrence, we
estimate insurance claim' settlements at $125,000 for Fiscal Year 2003-2004. As of
8/31/04, however, the City has contractual deductibles (potential liability) with Florida
Municipal Insurance Trust of $82;000 (not included in the $125,000 budget estimate
above), which would only be payable if settlements are made on those claims in the
future. We are unable at this time to determine if those deductibles will be payable.
Consent Agenda Item 201
September 13,2004
Page 2 of2
FUNDING: A supplemental appropriation from the General Fund Reserves of $50,000 will be
placed in General Services - Risk Management Line Code 1920-54511: General
Insurance Settlements. These funds, along with the currently budgeted funds of
$75,000, will bring the Fiscal Year 200312004 Budget to $125,000.
RECOMMENDATION: Staff recommends that the City Commission approve a supplemental
appropriation in the amount of $50,000 from the General Fund Reserves for the
General Services - Risk Management Line Code 1920"'54511: General Insurance
Settlements.
ATTACHMENTS: None
COMMISSION ACTION:.