1996 AGN JUL 02 I17 - Laserfiche WebLink

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HAY -22-1996 12:09 FROm CITY OF COLTON RDA TO CITY MANAGER P.07 Re"rve AnalYS18 L othm dropped. As a restilt of this reduction, the FY 1994-95 Budget Provided lbr a tionsfer of S206,000 to the O=cml Liability Reserve. Due to the wnvWvc actions taken over the past two Yem 10 red= the CNinew 11abithy ReservejaddLendtDdeveloparemy equal to three time the M 1&0 annuftl contributions ban decremcd fi= ffie original Projection Of $449,000 in 1993 to $280,000 in 1995. .y UTP Required Recomwevided SIR Level Reserve Mididt TrAMSEW 1994 LTFP $75 000 *M5,000 $305,000 1995 LTFP $250,000 S750,000 *43371,000 000SU0,000 *BMcd on 1993.94 Projected year end f=d balance deficit. 0"Dwed, on 199445 pm'eated yew end Amd, balance deficit. *WqP[(S750,000 + $371,OWY4 =8M,250)] no projected fund balm= as of June 30, 1995 is -S371,000. In order to balance the fund Ind establish dw now rin;erve level by fisw yew 199&-99, the wirtual contribution would, need to W $2go,000 Ova the =a few yew. Ibis arnoW is W,000 less than the 1994 LTW recommendations. Funding for the reserve would he allocated from the following fUnds: 0aparal Fund $120,400 Water Fund S58,200 gem Forid S25,2aD Golf Fund W1200 Storm Dtain Fund SSO-400 Total $280,000 Aiiocations ftm cub fizad am based on a proportionaft sbaw of 111120ricill Claim. Recommendaff= 1. Radf= the city Vneiij Policy of maiwamin thrae times the established SIR inresem And --urtain the SeffInsured Retention at $250,000. 2. Contribute SM,000 annually toward deficit reduction and tbe build up of thezequired reserve over the ow favir years. 17his is a delay oforic yew toward fidl fmiding ofthis reseryt, however, claim activity is anticipated to dccrown or stabilize due to worldorce reductions and the trandw of risks waociated with these reductions- Kiw-Ll da 6