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Item #04 a.b. Health Insurance Fund - a. Emergency Funding for Health Insurance Fund, b. Additional Funding for the Health Insurance FundS` '— �)C () (-> (-> f 10 rid 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 �)C ()P� florida 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