HomeMy WebLinkAbout1998 Resolution No. 054•
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RESOLUTION NO. f!L
SERIES OF 1998
A RESOLUTION FOR THE TRANSFER OF FUNDS FROM THE GENERAL FUND TO
THE HEALTH SELF-INSURANCE FUND.
WHEREAS , the City Council of the City of llnglcwood , Colorado, desires to make certain
additione to the 19~8 Annual Budget which were not included in the onginal 1998 Budget
aa ndopted or, October 23 , 1997, such funds are to be used for supplemental benefits for puhce office ra and firefighters; and
WHEREAS , the Englewood City Co uncil authorized the passage of C.B. 23 and C.B. 24 .
Series of 1998 authorizing the changes in E.M.C. 3-7-2 and 3-8-1 -2 implementing a new
board to administer the "Supplement Di sability Benefita" for Police Officers and Firefighters
the pa ssage of this resolutio n will allow for the transfer a nd appropriation of funds ;
NOW , THEREFORE, BE IT RESOLVED BY Tl-IE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT:
~-The City of Englewood 1998 Budget is here by amended as follow s:
GENERAL FUND :
Source of Fund&:
Unreservec/Undesignated Fund Bala nce
S36 3.000
Dee of Fun ds~
Transfer to Health Self-Ins urance Fund
S363,000
HEALTH SELF-INSURANCE FUND :
Source of Fundf
Tr ansfer In Frcm General Fund
S363.000
Use of Fund f:r
Police/Firefigh te r Supplemental D1oab1hty Benefits
S3 63 ,000
~-Th e Ctty :Vla n11ger a nd the Direc tor of Fma ncm l Services a re hereby a uthori zed to
make t he above cha nges to th e 1998 Budget of the City of Engle wood.
AD•'P ,ED AND APPROVED this I
I, Loucriahia A. Ellia , Ciiy Clark b-.J,lte City of Englewood, C
above ia a true copy of Reoala:am No.7t; Series of 1998.
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Date
May 18, 1998
Initiated By
COUNCIL COMMUNICATION
Agenda Item
10 Ci
Staff Source
Subject A 1980Mlon
tranafenqi funds for
~ benefits for
Englewood's Police Officers
and Firefighters
Department of Financial Services Frank Gryglewicz. Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council gave staff direction to proceed with bills for ordinances changing the SUIOl)l emental benefits for
police off icers and firefighters at the study session held April 20, 1998. City Council "llll"'ved changes to the
supplemental disability benefit on May 4, 1998 .
RECOMMENDED ACTION
Staff recommends the City Council approved the attached resolution .
BACKGROUND , ANALYSIS , AND ALTERNATIVES IDENTIFIED
The su pplementa l disability benefit for police office rs and firefighters has been in ace for over 20
years . The benefit has been the subject of numerous Pension Board discussions.. Th e Police Officers
and Firefighters Pension Boards worked with Financial Services staff , the City Attorney, and the City's
actuary to draft this ordinance. Both Boards voted in the affirmative to present th e d raft ordinance to
City Council for approval.
The actuarial study done by the William M. Mercer Company estimated the annua, .:est of this ben efit
at $27,000 per year. City staff would like to fund th is benefit for the next 25 yea rs, This wi ll elim inate
concerns current and future beneficiaries may have regardin g the financial soundness of th is plan .
The City of Englewood is currently financially healt hy, and can afford to fund th is program from General
Fund reserves .
The sources and uses of funds a re:
GENERAL FUND :
Source of Funds:
Unreserved/Undesignated t'u nd Balance S363 .000
Use of Funds :
Transfer to Health Self -Insurance Fund S363,000
HEAL TH SELF-I NSURANCE FUND :
So urce of Fu nds :
Trans fer In Fro m Gen era l Fund S363 ,000
Use of Funds :
Police/Firefighter Supplemental Disability Benefits $363,000
Other allematiltlell City Council may cooslder pa,pal funding or fUf1djng this on a "pay-as-you-go" basis .
FINANCIAL _.ACT
The cummt ~ determined estimated cost of the benefit Is $27 ,000 per year for both police and
firefighters. Tiw re&Olutlon ttanslers the funds to adequatlfy 1und the estimated cost of this benelh for
25 years . n. pwent value of $27 ,000 per year for 25 years at 5.5 percent interest Is approximately
$363,000 . T'-fl.Wlds will be transferred to the Sell lnsurnnce Fund and reserved (along with any
ea rnings) for h payment of this benefit .
UST OF ATTACHMENTS
Proposed bil ~ an ordinance