1996 AGN JUL 02 I17 - Laserfiche WebLink

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lop% I I I I I I I I a MAY -22-1996 12:09 FROM CITY OF COLTON RDA TO CITY MANAGER P.08 Reserve Analysis Fftcal IMPOct Comibution of im adMonal $M,000 into the General Liability FurA Funding in Py 1995-96 Of $280,000 will require en allocation of $120,400 ftni ft Gowd'Fund, wi& 11W rernainiuB .1locailon of S15%W to be provided by cownbWom froin other fands- Mforkerso Cong)91weition irmurance Fund city Cmr-a Fisw pofi-cy.. W,,Wn a mmvc based on the lijAcric trend of omwal claim paid W be mviewod and 84usted aiinually by the Cjy,s Cl&ilns Adininistrior. The 1993 LTyp projected a S 1.78 rdilion dwriffill CIDDSiSdUg Of a prescribed reserve ad by ft balancoof city council A $823,W0 (3 X Self Insuied Retention of S275,OOD) and a defidt fund = fmm the General Fund was recominerided in ft among of $959,000 . An S=dd fteuif red rcsery $321,000 to balance *6 fkmd and establish the requ' As part of die 1994 LTF? the City Council adjuftd the resm" Icquhunent to $460 'Wo from Lm6c claims ft f c=WrWM of =,000 (flM dmcs SIR of $275,000) bond on &e CItY`3 b and &e dramfic IcsWnjj* of cWm liability over tim due to do change *0111 City Police tD 001211WIL _rbe recent conWicting of Fircqervices witli ft ComV of orange will also oontribWe to a reducti0l) Of the CWS future ciaim liability. -Me Fy 1993.94 Budget Wovided for a GenazI ITund U=Sfcr of S=,000, wWch was I= Than pal speaffied in 1993 LTFP- In py 1994-95 $296,000 was 2110cated tO the WOrkees aflon ftVA vagn a& onount is a traiisftr of $271,000, as recommended in the 1994 LT - Fp. These: actions mduced the deficit to SV2,000. Based on the hWodc, trend of armual C19112s, an annual evaluation of ft fim"i'd the Chys cuirta einployee pWulafiw the CjWs Claim Adn=tstratOf M0311131crAs Ut WOTW= compensation raww" in Fy IM -96 be reduced from the current S460,000 to $400,000. Mie following table cottiMrs the 1994 LTrP mcotivzonded trewfer with the propoed ftwiskr LTFP Required R"6111"Kendeld Reserve Defidt Tmoslar 1994 LTFP *"W,006-- S896,000 $271,2W 1"s LTFp *$400,000 **M.000 **4$297,500 *Based on claims WstOrY- :*Pmj.ct.d 1994-95 yew ead ftad balance deficit- **j($W,000 + SM,000)/4 = $297.500 ) 1 7