FINANCIAL POLICIES
Pursuant to Resolution No. 85-17, City Council approval is required for settlement of workers’ compensation or general/auto liability claims exceeding $20,000. An annual actuarial study shall be conducted to provide an estimate of the self-insured liability to be recorded by the City in accordance with Governmental Accounting Standards Board Statement No. 10. This statement requires the City to accrue a liability on its financial statements for a reasonable estimate of the cost of claims and expenses associated with all reported and unreported claims. The City shall maintain reserves to fund its outstanding self-insured liabilities at the minimum level of 70 percent. The City shall maintain a Self-Insurance Fund to both fund the liability reserve and recover all associated risk management costs, including claim payments, insurance premiums and any deductibles, and claim administration (internal and external). The fund’s revenues shall be generated through assessments to City departments based on their claim experience and outstanding liabilities. These departmental assessments shall be evaluated annually and adjusted as needed. Staff shall report to the Finance Commission and City Council at least annually on the claims processed, amounts paid, and steps taken to manage and reduce the City’s risk and liability.
FY 2019-21 Proposed Budget
519
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