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HomeMy WebLinkAbout2004 Resolution No. 088• • • RESOLUTION NO . _Kf'_ SERIES OF 2004 A RESOLUTION APPROV ING THE TRANSFER OF FUNDS TO THE 2004 BUDGET . WI-I EREAS , th e Cit y of Englewood is required by City Chat1cr to en sure that expenditure s arc not made with out proper ap propria ti on by Cit y Co unci l; and WI-I EREAS, the City Counci l ap proved the 2004 Budget and App ropriati on Ordinarces on Novembe r 3, 2003 ; and WHEREAS, the Emp loyee Benefits Fund (EBF) is projected to have negative funds ava il ab le at the end of 2004 ; and \VHEREAS , thi s is due to a unique situ ation that occurred this year and last year; and WHEREAS, norma ll y, there are 26 pay periods in the year; th ere wi ll be 27 pay periods in 2004; and WHEREAS, the EBF co ll ec ts reven ue s from the various City departments based on the number of pay peri ods and makes premium and other payments frr.;n collec ti ons; and WHEREAS, while th e tota l premium for 2004 wa s divided by 27 pay peri ods , due to timin g factor s, only 26 pay periods of collections arc available for 2004 premium payments , th erefore there will be one payro ll 's worth of revenue not collected for the year; and WHEREAS , the Risk Management Fund (RMF) is projected to have a surplus of funds available at th e end of 2004, due to lowe r than expected claims ; and WHERAS , the passage of this Resolution will leave enough funds available in the RMF for cu rren t and future clai m payments; NUW , THEREFORE , BE IT RESOLVED BY THE CITY COUNC IL OF THE CIT Y OF ENGLEWOOD, COLORADO. THAT: Section I. The City Counc il of the City of Eng lewood , Colorado, hereb y appro ves the fo ll ow mg tran sfers and ,1ppropria ti ons : RISK MANAGEMENT FUND ~ource of Funds: r-und s Avai lab le Use of Funds: Transfers Out to th e Emp loyee Benefits Fund EMPLOYEE BENEFITS FUND Source of Funds: Transfers in from tht -tisk Management Fund Use of Funds: Funds A va ilablc S300 ,000 $300 ,000 $300,000 $300,000 ADOPTED AND APPROVED this 4" dny of October, 2004 . I, Loucrishia A. Ellis, City Clerk for)9j:.,City of Eng le wood , above is a true copy of Resolution No . lui,_, Serie s of 2004 . • • • • COUNCI L COMMUNICATI ON Date: Age nda It em: Subje cl: October 4, 2004 II c i Transfer Funds fr om th e Risk Management Fun d l o th e Employee Benefi ts Fun d Initiate d By: Staff Sou rce: D epartm ent o f Fin ance and Ad minis trati ve Services Frank Grygl ewicz, Direc tor COU NC IL GOA L AN D PR EV IO US COU NCI L ACTI ON Th e Co unc il has no t addressed thi s specific iss ue . RECO MME NDED ACTION Staff recommends City Co un ci l app rove th e attac hed reso lution transferrin g $300,000 from th e Risk Managem ent Fund lo the Employee Benefi ts Fun d. Th e so urces and uses of th e funds a,·e: RISK MANAGEMENT FU ND Source of Fund s: Fund Ava ilable $300,000 Use of Fund s: Transfe,s Out 10 th e Empl oyee Benefits Fund $300,000 EMPLOY E~ BENEFITS FUND Source of Fund s: Tra nsfers in fr o m th e Ri sk Manage ment Fund $300,000 Use of Fund s: Funds Avail ab le $300,000 Th e City o f Englewood is required by City Ch art er l o ensure that ex penditu res are no t made w ith out proper appropriati on by City Coun ci l. The atta ched res olutio n appro priates funds l o ensure th at the Ciry of Engl ewood complies w ith lega l res tr ic tions governing l ocal budgeting . BACKGROUND, ANALYS IS, AND ALTERNATIVES IDENTIFIED The Emp l oyee Benefit s Fund (EBF) is projec ted to have nega tive funds avai lable du e at th e end o f 200 4. Thi s is du e to a unique situati on that occurred this yea r and last . Normall y, th ere are 26 pay p eri ods in th e yea r; in 2004 th ere w ill be 27 p ay periods . The EBF coll ec ts reve nu es fr o m th e va ri o us City departments ba se d on th e number of pay p eri ods and makes premium and oth er pa ym ents fr om coll ec tio ns. While th e total premium fo r 2004 was divid ed b y 27 pay p Priods, du e to ti m i ng factors, onl y 26 p eriods of coll ections are ava ilable for 2004 premiums pa ym ~: 11s, so there w ill be one pa yroll's worth of re ve nue not co ll ec ted for th e yea r. The Risk Mana ge m ent Fund (RMF) is projected to ha ve a su rplus of funds avai lable at ye .,, , end . This is due to lower than ex pec ted claims. Ci ty staff proposes transferring $300,000 from n ,e RMF to th e EBS to make it •whole." This transfer will leav e eno ugh funds avai labl e In th e RMF '•,r {urrent and future claim pa ym ents. FINANCIAL IMPACT TI1i s transfer will redu ce the Risk Management Fund funds avai labl e by $300,000 and increas e th e Emp loyee Benefi t Fund funds ava il able by $300,000. UST OF ATTACHMENTS Pr oposed reso lution • • •