Agenda Date: 01/07/2025
Subject:
Title
Ordinance 32-2024: An ordinance on second reading amending Ordinance 24, Series 2023, appropriating funds for the 2024 annual budget for all municipal purposes of the City of Littleton, counties of Arapahoe, Douglas, and Jefferson, State of Colorado, for the fiscal year beginning January 1, 2024 and ending December 31, 2024
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Tiffany Hooten, Finance Director
Presentations:
N/A
PURPOSE:
Does council support amending the 2024 budget for additional insurance related costs in 2024?
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The city prepares an annual budget that may require amendments throughout the year for projects or costs that were unplanned or needs that might arise. It is a common practice to amend the budget during the year. These funds are requested to be amended.
Employee Insurance Fund $ 850,000
Property and Liability Fund $ 125,000
Total $ 975,000
BACKGROUND:
It may be necessary to amend the budget periodically throughout the year or with a "clean-up" appropriation at the end of the year. The following is detailed information on each requested budget amendment item for 2024.
Employee Insurance Fund - $850,000
Health Insurance is included in the Employee Insurance Fund and claims can vary from year to year. The city utilizes CIGNA for health claims and is self-funded with an Individual Stop Loss (ISL) limit of $150,000. Health related claims have been higher than anticipated in 2024 and clinic costs, specifically prescription costs, are much higher than estimates provided at the time of the preparation of the 2024 budget. It is anticipated that an additional $850,000 appropriation is needed for the health insurance fund for 2024. This represents am increase of 12.5% over the original budget for 2024.
Staff has reviewed the five-year financial plan for the Employee Health Insurance fund. In 2024, the fund ...
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