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 an 18-month trend of actual city utilization in conjunction with industry trends, as well as actuarial services. The appropriation included 2014 budgeted amounts, employee premium contributions, COBRA premium deposits, and prescription drug rebate deposits.
FISCAL IMPACT: Claims costs and administrative fees for 2014 are estimated at $152,319,695.00 A total of $152,319,695.00 is projected to be required for 2014. 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) 113,510,000
Occupational Health Clinic 305,000
Dental Plan 7,275,000
Drug Plan 26,139,695
Vision Plan 1,000,000
Life Plan 1,250,000
Disability Plan 2,840,000
TOTAL $152,319,695.00
Title
To make appropriations for the 12 months ending January 31, 2015 for the funding of the City employee insurance programs; and to declare an emergency. ($152,319,695.00)
Body
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary make said appropriations to avoid a disruption in the provision of employee insurance programs and for the preservation of the public health, peace, property, safety, and welfare;
Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS, OHIO
SECTION 1. That from all the funds from any and all sources estimated to come into the Employee Benefits Fund 502 during the 12 months ending January 31, 2015, the following appropriations are hereby authorized and directed:
See attachment: 2990-2013 Appropriation attachment
SECTION 2. That from the funds appropriated in the foregoing Section 1 shall be paid on order of the Human Resources Director and no order shall be drawn or funds 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 approval by the Mayor or ten days after passage, if the Mayor neither approves nor vetoes the same.