Explanation
BACKGROUND: To maintain the employee insurance programs in accordance with the negotiated labor contracts, appropriation is necessary for the continuation of all employee benefits programs. Cost estimates for 2027 claims and fee runout and 2027 claims and administrative fees are based on 2024-2026 benefits fund expenditures using a weighted average of actual city utilization and expected changes due to union negotiations. Input from insurance carriers, in conjunction with industry trends, and actuarial services are also key factors. The revenue for the 2027 benefits fund includes the 2027 Department budgeted amounts, employee premium contributions, COBRA premium deposits, and medical and prescription drug rebates.
FISCAL IMPACT: Claims costs and administrative fees for 2026 runout and 2027 are estimated at $301,030,000.00. These funds are needed to cover the costs of the City employee insurances and wellness programs. This ordinance is contingent on the passage of the 2027 Operating Budget.
Appropriation is being made to the following programs:
Medical Plan* $281,620.000.00
Ohio AFSCME Cares Plan 30,000.00
Dental Plan 8,650,000.00
Vision Plan 1,520,000.00
Life Plan 1,800,000.00
Disability Plan 4,530,000.00
Employee Fitness Center 180,000.00
Wellness initiatives 2,700,000.00
TOTAL $301,030,000.00
*Includes medical, drug, COBRA, tobacco cessation and PCORI fees
Title
To make appropriations for 12 months, January 2027 ending December 2027, for the funding of the City employee insurance programs; to authorize the Director of the Department of Human Resources to make payments from said appropriations. ($301,030,000.00)
Body
WHEREAS, in order to maintain the employee insurance programs in accordance with the negotiated labor contracts, appropriation is necessary for the continuation of all employee benefits programs; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Human Resources to request appropriations; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS, OHIO
SECTION 1. That from the monies in and from all monies estimated to come into the Employee Benefits Fund 5502, from any and all sources during the 12 months of January 2027 through December 2027, the following appropriations are hereby authorized and directed; $301,030,000.00:
See attachment: 2027 Appropriation attachment
SECTION 2. That the monies appropriated in the foregoing Section 1 shall be paid on order of the Director of the Department of Human Resources and no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is hereby authorized to make transfers as may be necessary.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.