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City Expendable Trust Fund ~801 <br /> Self-funding Insurance <br /> 'r <br /> 'By : Sandra Ashley Helling, Finance Officer <br /> <br />Backgroun~: <br /> <br />i'.~s fund,i, established in 1991, is used to account for insurance re~uPcs, <br />C~vidends ian~i oti~er miscellaneous insurance related revenues. T~,e sta~ed <br />purpose of~ th~ fund balance is to proviae for self-insuring the deductible <br />portion of [th~[~ City's l~surance policies. <br /> <br />Las% year~ during interviews with insurance agents of record, i% was <br />suggested ~i~ fund balance should at ieas5 $100,000.00 before its inLerest <br /> a~e ~ade available ~c fund t~e Oeductible portion of the City's <br />earp. ln~s <br />~roperty,~$ability insurances. <br /> <br />Attached:~ <br /> <br />inLerim Financial Report ~cr Fund 80! <br /> <br />(usually r~ce~vec zn Dece~er~ ~s s~cr.~cant orocress uowar~s une $100, 00C <br />coal. AS I~ is antlclpated %~ls ~und will save t~e C~sv ~uture ~oLiars <br />rre~ums.,~uii[ _Zundlnc aionc wlth ~n~mzzlnc the ~_~}~ "~_ insurance risk will <br />~esu!t <br /> zn ~owe~ ~utur~ gener~l fund oDera%in6 costs. <br /> <br />A% our current mnterest earnzn~ ra%e a fund balance cf $!00 000 would <br />~enerase $~,00~0 zn%eres% earnzngs. A comprehensive revmew cf pre=~ savzngs <br /> ~ ~__~ ..... ,_m the <br />based on ~ncr~aslnc t~e Geduc%ible .... need tc be made <br />~nnerest e~r~%ngs on a fund Da!ance cf $!00,000 plus premium sav~ngs <br />~rov~de ~e Oitv_ _=na.~=_=~ ~ -~ .urc'~ec%icn tc 3us%fly_ a chance_ Lt. insurance <br />Oe~uutihi%~: Thee S~ty's insurance Acent cf Recorc and F~nanse Officer snoula <br />complete t~s }review in 1992 Ln orGer %c acvLse une Busge% CciTt%Lee on <br />suuces%e~ ~Und~DaLance. <br /> <br />Budge: CO~ee Action: <br /> <br /> <br />