HomeMy WebLinkAboutItem #04 a.b. Health Insurance Fund - a. Emergency Funding for Health Insurance Fund, b. Additional Funding for the Health Insurance FundS` '—
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AGENDA ITEM COVER SHEET
Meeting Date: January 20, 2015
Contact Name:
Contact Number:
Item # y nx-
Gene Williford Reviewed By:
Wanda Horton Department Director:
1032, 1520
City Manager:
Subject: Emergency Funding for Health Insurance Fund
Background Summary:
In November of 2007, the City of Ocoee began a self- insurance plan for health care coverage to its
employees and dependents. In April of 2008, the City opened its own health care clinic to contain
medical costs and provide efficient medical services to the City's employees and their families.
By self- insuring and providing medical services through the clinic, the City has realized substantial
savings over the years of approximately $600,000 yearly.
Issue:
Unfortunately, as the City's employee population has aged so has the severity of medical conditions.
During this past year the City has experienced several present or past employees with major medical
conditions that have seriously strained the City's medical financial accounts. These major claims have
resulted in an additional $400,000 impact to the health fund.
Recommendations
Staff recommends the City Commission approve the action taken by the City Manager for the
emergency funding of $125,000 from the General Fund to the Health Fund.
Attachments:
N/A
Financial Impact:
Approval of this action will provide funding for the payment of insurance claims. These funds will be
reimbursed to the General Fund with proceeds from an internal loan to the Health Fund appearing as
a separate agenda item for commission approval.
Type of Item (please mark with an 'Y)
Public Hearing
For Clerk's Dept Use:
Ordinance First Reading
Consent Agenda
Ordinance Second Reading
Public Hearing
Resolution
Regular Agenda
Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by () N/A
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AGENDA ITEM COVER SHEET
Meeting Date: January 20, 2015
Item # L4 b
Contact Name:
Contact Number:
Gene Williford
Wanda Horton
1032, 1520
Reviewed By:
Department Director:
City Manager:
Subject: Additional Funding for the Health Insurance Fund
Background Summary:
In November of 2007, the City of Ocoee began a self- insurance plan for health care coverage to its
employees and dependents. In April of 2008, the City opened its own health care clinic to contain
medical costs and provide efficient medical services to the City's employees and their families.
By self- insuring and providing medical services through the clinic, the City has realized substantial
savings over the years of approximately $600,000 yearly.
Issue:
Unfortunately, as the City's employee population has aged so has the severity of medical conditions.
During this past year the City has experienced several present or past employees with major medical
conditions that have seriously strained the City's medical financial accounts. These major claims have
resulted in an additional $400,000 impact to the health fund.
Recommendations
Staff recommends the commission approve a loan to the health fund of $400,000 from the Road Impact fund.
An emergency item on the agenda utilizes $125,000 of this amount for emergency action already taken by the
City Manager.
Attachments:
N/A
Financial Impact:
The transfer of funds should provide adequate funding for the remainder of the fiscal year if claims do not
increase further. Repayment of this loan from the General Fund to the Road Impact Fund will be by a transfer
at fiscal year -end if sufficient funds are available or inclusion in the budget for fiscal year 2016.
Type of Item (please mark with an 'Y)
Public Hearing
For Clerk's Dept Use:
Ordinance First Reading
Consent Agenda
Ordinance Second Reading
Public Hearing
Resolution
Regular Agenda
Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A