Title
Resolution authorizing an emergency appropriation for Fund 206 Liability Insurance and Risk Fund ("Risk Fund") to fund settlement expenses in excess of the Fiscal Year (FY) 2026 budget in the amount of $2,000,000 from the Fund 206 fund balance.
Staff Summary
* Lake County has incurred settlement expenses in the Liability Insurance and Risk Fund 206 that exceed the amount approved in the Fiscal Year (FY) 2026 budget. There are known and pending settlements that exceed the amounts budgeted and planned for at the time the FY 2026 budget was proposed.
* The Fund 206 annual budget for claim and settlement expenses is established based on historical average spend, however budgeted settlement funds have already been utilized. Therefore, it is necessary to utilize the fund balance reserves from the Risk Fund to cover these additional settlement 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 reserves at the end of FY 2026.
Body
RESOLUTION
WHEREAS, Lake County has settlement expenses in Fund 206 Liability Insurance and Risk Fund that exceed the available remaining Fiscal Year (FY) 2026 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 settlements.
NOW, THEREFORE, BE IT RESOLVED, that the Lake County Board approves an emergency appropriation in the amount of $2,000,000 will be allocated into Fund 206 Liability Insurance and Risk Fund account number 206-1440010-72190 (settlements).
DATED at Waukegan, I...
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