Title
Resolution authorizing an emergency appropriation in Fund 206 Liability Insurance and Risk Fund ("Risk Fund") to fund claim settlement expenses in excess of the Fiscal Year 2023 budget in the amount of $1,700,000 from the Fund 206 fund balance.
Staff Summary
* Lake County has incurred claim and settlement expenses in the Fund 206 Liability Insurance and Risk Fund that exceed the amount approved in the Fiscal Year (FY) 2023 budget. There are known and pending claims and claim settlements that exceed the amounts budgeted and planned for at the time the Fiscal Year 2023 budget was put together.
* The Fund 206 annual budget is established based on historical average claim spend as well as a projection of upcoming activity but in FY 2023, all budgeted funds have already been utilized. Therefore, it is necessary to utilize the fund balance reserves in the Risk Fund to cover these additional expenses.
* The Risk Fund has a fund balance policy that anticipates these unknown factors. It is made up of 12 percent of the following years budgeted expenses plus the amount of the actuarial analysis of open claims. Therefore, there are sufficient reserves in the fund to cover this emergency appropriation.
* Should this additional appropriation not be fully utilized, it will fall back into the Risk Fund fund balance at the end of FY 2023.
Body
RESOLUTION
WHEREAS, Lake County has claims and settlement expenses in Fund 206 Liability Insurance and Risk Fund that exceed the available remaining FY 2023 budget; and
WHEREAS, Fund 206 Liability Insurance and Risk Fund has sufficient reserves in fund balance to cover these additional expenses; and
WHEREAS, an emergency appropriation is necessary to provide sufficient funding to fund outstanding and pending claims and settlements.
NOW, THEREFORE, BE IT RESOLVED, that the Lake County Board approves an emergency appropriation in the amount of $1,700,000 in the Fund 206 Liability Insurance and Risk Fund, account number 206-144...
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