HomeMy WebLinkAboutItem 11 - Stop Loss Insurance Program MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER gCL'
MEETING DATE: DECEMBER 19, 2017
SUBJECT: STOP LOSS INSURANCE PROGRAM APPROPRATION
ORDINANCE
RECOMMENDATION:
It is recommended that the City Council adopt the attached appropriation ordinance
increasing estimated receipts and appropriations in the General Fund from the City's
Stop Loss Insurance Program.
FUNDING SOURCE:
Upon approval of the attached appropriation ordinance, funding for this program will be
available in (100-39801) the Insurance Reimbursement account in the amount of
$1,569,991.
BACKGROUND:
In FY2017, the City's health insurance claims budget for active employees and pre-65
retirees was $9,565,172. Due to an unexpected number of claims, cost was higher,
however, the Stop Loss Program offsets this cost. The Stop Loss Program is in place to
protect against excessive claims by limiting the amount of risk on any one individual
insured. The City collected reimbursements from the Stop Loss Program on health
claims in excess of the specific and aggregate deductibles.
Staff recommends approval.
ORDINANCE NO. 2017-088
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS; APPROPRIATING $1,569,991.00
AND INCREASING ESTIMATED RECEIPTS IN THE
GENERAL FUND FOR FISCAL YEAR 2017; DECLARING
AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City's Stop Loss Program is in place to protect against excessive
healthcare claims by limiting the amount of risk on any one individual; and
WHEREAS, the City exceeded its health insurance claims budget for active
employees and pre-65 retirees due to an unexpected number of claims; and
WHEREAS, the City collected reimbursements from the Stop Loss Program on
health claims in excess of the specific and aggregate deductibles in the amount of
$1,569,991.00; and
WHEREAS, all constitutional and statutory prerequisites for the approval of this
ordinance have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this ordinance is in the best
interests of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated herein above are true and correct and are
incorporated herein by reference as if copied in their entirety.
Section 2. That the City Council hereby appropriates the funding from the Fiscal
Year 2017 unappropriated fund balance.
Section 3. That the City Council hereby authorizes an amount of$1,569,991.00
to be appropriated to account 100-45664-109-001.
Section 4. That this ordinance shall take effect immediately upon passage by
the City Council of the City of Grapevine, Texas.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 19th day of December, 2017.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
Ordinance No. 2017-088 2