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 2017 budgeted amounts, employee premium contributions, COBRA premium deposits, and prescription drug rebate deposits.
Emergency action is requested to ensure the health insurance program for city employees are able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Claims costs and administrative fees for 2017 are estimated at $194,966,360. A total of $194,966,360 is projected to be required for 2017. These funds are needed to cover the costs of the City employee insurances. Contingent on the passage of the 2017 Operating Budget (ordinances 2862-2016, 2863-2016, and 2864-2016).
Appropriation is being made to the following programs:
Medical Plan 133,747,834
COBRA 11,000
Front Street Fitness 55,762
Biometric Health Screenings 104,149
Tobacco Cessation 20,250
Dental Plan 8,097,365
Drug Plan 47,650,000
Vision Plan 1,040,000
Life Plan 1,000,000
Disability Plan 3,240,000
TOTAL $194,966,360
Title
To make appropriations for the 12 months ending January 31, 2018 for the funding of the City employee insurance programs; and to declare an emergency. ($194,966,360.00)
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, an emergency exists in the usual daily operation of the Department of Human Resources in that it is immediately necessary to authorize appropriations to ensure the health insurance program for city employees are able to commence as soon as contractually possible, thereby maintaining continuity of service;
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, 2018, the following appropriations are hereby authorized and directed:
See attachment: 2017 Appropriation attachment
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. 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. To authorize the City Auditor to make transfers as may be necessary.
SECTION 5. That for the reasons stated in the Preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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.