HomeMy WebLinkAbout2022-09-27; City Council; Resolution 2022-230RESOLUTION NO. 2022-230
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE APPROPRIATION AND TRANSFER FROM
GENERAL FUND RESERVES IN FISCAL YEAR 2022-23 TO THE CITY'S WORKERS'
COMPENSATION FUND
WHEREAS, City Council Policy No. 87 -General Fund Surplus Policy allows for General Fund
reserve levels in excess of the 40% target requirement to be used for one-time opportunity cost
purposes at the discretion of the City Council; and
WHEREAS, at the close of fiscal year 2021-22, the city's unaudited General Fund reserve balance
is 62% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and
WHEREAS, at the close of fiscal year 2021-22, the remaining unaudited unspent and
unencumbered expenditures budget for the General Fund is $14.7 million of which $5.9 million has
been carried forward as a result of previous City Council resolutions, resulting in an available surplus
of $8.8 million; and
WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any
unspent and unencumbered budget for a particular item equal to or greater than $100,000; and
WHEREAS, the city is self-insured for workers' compensation; and
WHEREAS, an external actuary firm estimated the city's outstanding losses based on current
claims, case reserves and incurred but not reported claims, and determined that when compared to
current fund balances, the city has additional potential exposure that could be mitigated; and
WHEREAS, the balance of the city's Workers' Compensation fund at June 30, 2022 is
$13,801,506, which is $8,208,252 less that the actuary firm's expected loss outcome of $22,009,758.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That a transfer to the city's Workers' Compensation Fund in an amount �s determined
by the City Council and set forth in the minutes of the City Council meeting of Tuesday,
Sept. 27, 2022, is approved to help mitigate potential future exposure based on the
most recent report from the external actuary firm.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 27th day of September, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
Hall.
None.
MATT HALL, Mayor
� � FAVIOLA MEDINA, City Clerk Services Manager 1" (SEAL)