HomeMy WebLinkAboutOrdinance 22350-08-2016 ORDINANCE NO.22350-08-2.016
AN ORDINANCE INCREASING THE ESTIMATED APPROPRIATIONS IN THE
GROUP HEALTH AND INSURANCE FUND IN THE AMOUNT OF $7,800,000.00,
AND DECREASING THE UNRESTRICTED FUND BALANCE BY THE SAME
AMOUNT, FOR THE PURPOSE OF FUNDING GROUP HEALTH PLAN
CLAIMS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated appropriations in the Group Health and
Insurance Fund in the amount of$7,800,000.00, and decreasing the unrestricted fund balance by the same
amount,for the purpose of funding the group health plans claims.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
ill Treviflo,Assistant City Attorney ary J I r i Secretary
ADOPTED AND EFFECTIVE: August 9,2016
Ordinance No.22350-08-2016
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/9/2016 - Ordinance No. 22350-08-2016
CONTINUED FROM A PREVIOUS WEEK
DATE: Tuesday, August 2, 2016 REFERENCE NO.: G-18791
LOG NAME: 14CLAIMS SUPPLEMENTAL APPROPRIATION
SUBJECT:
Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the Group Health and Insurance
Fund in the Amount of$7,800,000.00 and Decreasing the Unrestricted Fund Balance by the Same Amount
for Funding the Group Health Plan Claims (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that City Council adopt the Supplemental Appropriation Ordinance increasing
appropriations in the Group Health and Insurance Fund in the amount of$7,800,000.00 and decreasing
the unrestricted fund balance by the same amount for funding the Group Health Plan Claims.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to increase the Fiscal Year 2016
appropriation in the Group Health and Insurance Fund (the Fund) in the amount of$7,800,000.00 for the
purpose of funding the group health plan claims.
The Group Health and Insurance Fund provides funds for the health insurance for employees, retirees,
and their dependents, basic life insurance for employees and funding for the Employees' Wellness
Program. Expenditures are dependent on the aggregate cost of annual health plan claims. The Funds'
revenues come from active employee and retiree contributions, contributions from City funds and interest
on investments.
Additional funding is needed because the group health plan has experienced higher catastrophic claims
than originally anticipated. Based on Fiscal Year 2016 projections, the Fund is expected to end fiscal year
with an overall deficit of approximately $6,400,000.00, which includes overages in health plan claims of
$7,800,000.00, and offsetting savings and revenues of$1,400,000.00. The Fund is requesting
$7,800,000.00 to cover overages in the health plan claims account.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the attached supplemental appropriation ordinance,
funds will be available in the current operating budget, as appropriated, of the Group Health and Insurance
Fund. Upon approval, the unrestricted fund balance of the Group Health and Insurance Fund will meet the
minimum reserve as outlined in the Financial Management Policy Statements.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
60109 0148520 5520103 7,800,000.00
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CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Brian Dickerson (7783)
Additional Information Contact: Margaret Wise (8058)
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