HomeMy WebLinkAbout1997-005 1996 Budget Amendment Employees health benefit ORDINANCE' NO. 97 05, .
AN ORDINANCE amending the 1996 budget for the. City of Yakima; and making
an appropriation of $540,000 in the Employees' Health Benefit
Reserve Fund for unanticipated medical claim costs during
1996.
WHEREAS, the amount of $540,000 must be appropriated within the
Employees' Health Benefit Reserve Fund in order to provide funding for unanticipated
medical claim costs, and
WHEREAS, at the time of . the adoption of the .1996 budget it could not
reasonably have been foreseen that the appropriation provided for by this ordinance
would be required; and the City Council finds that an emergency exists of the type
contemplated by RCW 35.33.091 and that it is in the best interests of the City to make
the appropriation herein provided, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The amount of $540,000 is hereby appropriated from the
Unappropriated Fund Balance in the Employees' Health Benefit Reserve Fund to
account numbers shown on Schedule I as a 1996 appropriation.
® Section 2. This ordinance is one making an appropriation and shall take
effect immediately upon its passage, approval and publication as provided by law and
by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 7th day of
January . 1997. •
/
NN BUCHANAN, MAYOR
ATTEST: • . .
ACTING. ITY ;CLERK
First Reading: 12/17/96
Publication Date: 01/10/97
Effective Date: 01/10/97 _
LEGALPod
Ordinances
A02
12/13/96 3:00 PM
SCHEDULEI
EMPLOYEE'S HEALTH DEBIT CREDIT
BENEFIT RESERVE
Estimated Revenue
Stop Loss Recoveries
513 -3- 513- 699 - 0000 - 363.00 -SLR $107,600
Total Estimated Revenue $107,600
Appropriations
MedicalNision Claims Paid
513 -4- 513- 623 - 0000 - 517.38 -256 $540,000
Total Appropriations $540,000
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BUSINESS OF THE CITY COUNCIL
0 YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. a 9 - C-
For Meeting Of 12/17/96
•
ITEM TITLE: An Appropriation Ordinance amending the 1996 Employee Health Benefit
Reserve Fund Budget
SUBMITTED BY: Human Resources Division
CONTACT PERSON/TELEPHONE: Sheryl M. Smith / 576 -6665
SUMMARY EXPLANATION:
The attached ordinance increases the 1996 Employee Health Benefit Fund Budget by $540,000
($231,478 had been anticipated previously in our 1996 year -end estimates) to provide for
unanticipated medical claim costs.
This appropriation is further off -set by $107,600 in Stop Loss Benefit Revenue received to date.
In the last ten months, the City Health Benefit Fund has incurred 17 claims which are considered
f
rge claims (larger than $23,000). This compares to 10 claims in this category for twelve months of
iiii 995. To date, two (2) claims have exceeded stop Toss limits of $115,000 compared to one (1) in
995.
Overall, the 17 claims for this year through October 31, 1996, amount to $878,000 compared to the
ten (10) in 1995 at $537,000. A number of the large claims have occurred in the second half of the
year. This impact and budget appropriation will reduce operating reserves and will require staff and
the Health Benefits Board to adjust the estimated premium rates for employees and the employer as
well as the budget for 1997.
Resolution _ Ordinance X Contract — Other (Specify)
Funding Source , Employees' Health Benefit Reserve
APPROVED FOR SUBMITTAL: \
City Manager
er 9
STAFF RECOMMENDATION: Read Ordinance by title only December 17, 1996; pass ordinance at
the second reading, January 7, 1997.
BOARD /COMMISSION RECOMMENDATION:
•OUNCIL ACTION: First Reading: 12/17/96
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