Report Prepared by: Maggie Fuentes, Human Resources Technician II, Human Resources Department
Title
SUBJECT: Approval of Supplemental Appropriation in the Amount of $95,000 Due to Increased Worker's Compensation Claims Activity in Fiscal Year 2019-2020
REPORT IN BRIEF
Considers approving a supplemental appropriation in Fund 666-Worker's Compensation by $95,000. This adjustment is necessary due to higher than projected worker's compensation claims activity than what was originally budgeted for in fiscal year 2019-2020.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a transfer of $95,000 from Fund 672 Support Services to Fund 666-Woker's Compensation; and,
B. Approving a supplemental appropriation of $95,000 in Fund 666-Worker's Compensation; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
None.
AUTHORITY
Article XI - Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2019-20 Adopted Budget.
DISCUSSION
The City of Merced's Workers' Compensation program is a self-funded plan. During the annual budget process, the Human Resources department works with the City Attorney's office to estimate the needs of existing claims and pending settlements to recommend funding for this program. During this fiscal year, the City has experienced higher than anticipated workers' compensation claims activity than what was originally budgeted for in fiscal year 2019-2020
Human Resources is requesting a supplemental appropriation of $95,000 to cover the claims and payments needed for the administration of the City's self-insured worker's compensation plan. Prior to making this request, the department has depleted all prior year funding and contingency reserves in Fund 666 for payment of worker's compensation medical and permanent disability claims.
Review and Evaluation
During the 2019-2020 fiscal year the Human Resources Department reviewed and evaluated the workers' compensa...
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