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. To determine the amounts necessary for the annual appropriation, current utilization and projected future claims were analyzed and trended on the basis of a three-year average of actual city utilization in conjunction with industry trends, as well as actuarial services. The appropriation included 2006 budgeted amounts, employee premium contributions and COBRA premium deposits.
FISCAL IMPACT: Claims costs and administrative fees for 2005 and are estimated at $74,886,000.00. A total of $77,858,418.00 is projected to be required for 2006.
These funds are needed to cover the costs of the City employee insurances.
Appropriation is being made to the following programs:
Medical Plan (including COBRA) $51,731,267.00
Dental Plan $ 5,668,192.00
Life Plan $ 1,179,660.00
Disability Plan $ 2,975,555.00
Vision Plan $ 1,069,592.00
Drug Plan $15,234,153.00
TOTAL $77,858,419.00
Title
To make appropriations for the 12 months ending January 31, 2007 for the funding of the City employee insurance programs, and to declare an emergency. ($77,858,419.00)
Body
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to appropriate funds for the City's various employee insurance programs so that they continue without interruption, thereby preserving the public peace, property, health, safety and welfare; 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 502, from any and all sources during the 12 months ending January 31, 2007, the following appropriations are hereby authorized and directed:
Div. No. |
OCA |
OL1 |
Subfund |
OL3 |
Amount |
Total |
46-01 |
46007 |
3 |
208 |
3362 |
2,306,791.00 |
|
|
460004 |
|
Medical claims |
3363 |
49,414,526.00 |
|
|
|
|
|
|
|
|
|
461029 |
|
COBRA |
3362 |
9,950.00 |
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
51,731,267.00 |
|
|
|
|
|
|
|
46-01 |
460009 |
3 |
207 |
3362 |
313,723.00 |
|
|
460003 |
|
Dental |
3363 |
5,354,469.00 |
|
Subtotal |
|
|
|
|
|
5,668,192.00 |
|
|
|
|
|
|
|
46-01 |
461000 |
3 |
203 |
3362 |
1,179,660.00 |
|
|
|
|
Life |
|
|
1,179,660.00 |
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
46-01 |
460008 |
3 |
211 |
3362 |
154,000.00 |
|
|
461042 |
|
Disability |
3363 |
2,821,555.00 |
|
Subtotal |
|
|
|
|
|
2,975,555.00 |
|
|
|
|
|
|
|
46-01 |
461001 |
3 |
204 |
3362 |
90,426.00 |
|
|
|
|
Vision |
3363 |
979,166.00 |
|
Subtotal |
|
|
|
|
|
1,069,592.00 |
|
|
|
|
|
|
|
46-01 |
461035 |
3 |
209 |
3362 |
60,000.00 |
|
|
460005 |
|
Drug |
3363 |
15,174,153.00 |
|
Subtotal |
|
|
|
|
|
15,234,153.00 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL FUND 502 |
$77,858,419.00 |
SECTION 2. That from the monies appropriated in the foregoing Section 1 shall be paid on order of the Human Resources Director 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. To authorize the City Auditor to make transfers as may be necessary, and
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approved by the Mayor or ten days after passage, if the Mayor neither approves nor vetoes the same.