Minutes 06/25/2013 - Laserfiche WebLink

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June 25, 2013 Background: • Health insurance claims activity is trending higher than projected, and an appropriation of an additional $3,000,000 is needed to cover expected medical costs. Funds are available in the Health Insurance Fund Balance. Staff is evaluating the claims cost data to determine if there are any anomalies that would change the cost projection, and will ask Council to modify the amount of the appropriation at your meeting on Tuesday if needed. Discussion: • The FY 2012-13 Health Insurance Fund budget was appropriated as part of the FY 2011-2013 Biennial Budget and was adjusted to reflect projected costs for FY 2012- 13. These costs were estimated by Mercer, the City's health benefits consultant. However, the actual cost of medical claims appears to be trending higher than Mercer's estimate. Based on the data available so far, an additional $3 million is needed to cover projected claims costs for FY 2012-13. The Health Insurance Fund has sufficient fund balance to pay for the increased cost. Staff is reviewing the claims data with Mercer to determine the cause of the cost increases and possible strategies to address the claims trends. We are also fine tuning the cost estimate and will ask Council to make any needed adjustment to the appropriation amount at your meeting on June 25. The FY2013-14 Health Insurance Budget reflects Mercer's cost estimates for that fiscal year, which were prepared in February, 2013. Staff will come back to City Council if any changes in these estimates are needed as a result of current claims trends. Financial Impact: • The attached ordinance increases Health Insurance Fund expenditures by $3,000,000 and Transfer in from Health Insurance Fund Balance by $3,000,000. Recommended Action: • Adoption of the ordinance. Vision Principle: Efficient, Responsive Government. Next Steps Following Council Action: • Finance will complete the necessary budget adjustments. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke on the importance of fully funding the School Board budget. Motion by Mr. Moody, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO APPROPRIATE $3,000,000 IN THE FY 2012-13 HEALTH INSURANCE FUND." Ayes: Cherry, Edmonds, Meeks, Moody, Randall, Wright Nays: None 13 - 270 -Adoption of a resolution acknowledging regional efforts to manage solid waste in Southside Hampton Roads after January 24, 2018, and the City's intent to pursue cooperative development of a regional solid waste management system. Vision Principle: Efficient, Responsive Government. Background: • The Southeastern Public Service Authority (SPSA) was created by concurrent resolution of the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and the Counties of Isle of Wight and Southampton (the member localities) in 1976 as cooperative effort amongst the cities to dispose of the region's solid waste. • All the Use and Support Agreements with SPSA will expire on January 24, 2018 and the member communities must make a decision on waste disposal post 2018.