HomeMy WebLinkAboutOrdinance 27035-08-2024Ordinance No. 27035-08-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GROUP HEALTH INSURANCE FUND IN THE
AMOUNT OF $6,450,000.00, FROM ANTICIPATED PROJECTED REVENUES
TOTALING $6,450,000.00, FOR THE PURPOSE OF FUNDING CLAIMS
EXPENDITURES; 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 2023-2024 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Group
Health Insurance Fund in the amount of $6,450,000.00, from anticipated projected revenues totaling
$6,450,000.00, for the purpose of funding claims expenditures.
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 26453-09-2023 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said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
aJW&zft.1. A
7annette S. GoodalI
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE: August 13, 2024
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/13/24 M&C FILE NUMBER: M&C 24-0639
LOG NAME: 14ACTIVEBUDGETREAPPROPRIATIONFY2024
SUBJECT
(ALL) Adopt Appropriation Ordinances Increasing and Adjusting Appropriations in the Group Health Insurance Fund and Amend the Fiscal Year
2024 Adopted Budget for the Purpose of Funding Claims Expenses
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Group Health Insurance Fund in the
amount of $6,450,000,00, from anticipated projected revenues totaling $6,450,000.00, for the purpose of funding claims expenditures;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Group Health Insurance Fund in the
amount of $550,000.00 from fund balance, for the purpose of funding claims expenditures; and
3. Amend the Fiscal Year 2024 Adopted Budget.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to adjust the final budget and authorize transactions to reflect actual performance
of the Group Health Insurance Fund for the fiscal year ending September 30, 2024. Any amounts over budget must be appropriated by action of
the City Council, in accordance with the City Charter (ChapterX, Section 5, Expenditures Only Pursuant to Appropriations).
The deficit in the Group Health Insurance Fund is due to the significant increase in active employee health claims costs for Fiscal Year (FY) 2024.
The Group Health Insurance Fund saw an increase in claims of 32% from the same period in FY2023. The increase in claims cost is due to
several factors including multiple high cost claimants with claims in excess of $1,000,000.00. The City's pharmacy spend has increased as well,
primarily due to an increase in use of GLP1 medications. Additionally, as is the case nationwide, inflation is impacting providers' offices and
medical facilities causing the City's claims costs to rise.
The proposed FY2024 budget was based on claim estimates of the time. The Group Health Insurance Fund needs an additional $7,000,000.00 in
spending authority to continue to pay claims.
Additional revenues associated with stop -loss insurance reimbursement payments and pharmacy rebates are projected to be received in the
amount of $6,450,000.00, largely offsetting claims expenditures. An additional $550,000.00 use of Net Position within the Group Health Insurance
Fund will offset the remaining claims expenditures.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Net Position of the Group Health Insurance Fund, and upon approval of the
above recommendations and the adoption of the attached appropriation ordinances, funds will be available in the General Operating and
Maintenance category of the Group Health Insurance Fund. Prior to any expenditure being incurred, the Human Resource
Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office b1L Jesica L. McEachem 5804
OriginatingOdginating Business Unit Head: Dianna Giordano 7783
Additionallnformation Contact;
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