Minutes 04/26/2016 - Laserfiche WebLink

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April 26, 2016 - City Manager’s Report - 16 - 134 - Adoption of an ordinance authorizing the transfer of the Portsmouth Public Schools self-health insurance program from the PPS General Fund budget to the Risk Management Fund and the realignment of the PPS budget to accommodate the transfer, including by moving the initial FY 2015-16 Health Insurance Reserve of $5,763,696 from the General Fund to the Risk Management Fund. Vision Principle: Efficient Service Delivery. Background:  The School Board passed a resolution on February 11, 2016 to request the City Council approve the transfer of the self-insurance program activity and beginning FY 2016 health insurance fund balance/reserve from the general fund to the risk management fund.  Commencing on January 1, 2015 the schools began a self-health insurance model for employee health insurance and all activity including a fund balance/reserve was reported in the general fund.  U.S. Generally Accepted Accounting Principles (GAAP) includes statements from the Governmental Accounting Board Standards Board (GASB). GASB statement number 10, “Accounting and Financial Reporting for Risk Financing and Related Insurance Issues”, allows for the reporting of risk financing activity in the general fund or an internal service fund.  The city also accounts for its self-health insurance program in an internal service fund. Discussion:  Moving the PPS self-health insurance program from the general fund into the risk management fund improves the transparency and provides move clarity to the amounts associated with the health care program. The FY 2017 proposed budget also requests that the self-health insurance program be budgeted in the Risk Management Fund so moving the FY 2016 will provide more consistent reporting. Financial Impact:  No financial impact to the City’s budget. Recommended Action:  Adoption of the ordinance. Vision Principle: Efficient Service Delivery. Next Steps Following Council Action:  The Finance Department and PPS will complete the necessary budget adjustments. Motion by Mr. Meeks, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE AUTHORIZING THE TRANSFER OF THE REPORTING OF THE PORTSMOUTH PUBLIC SCHOOLS SELF-HEALTH INSURANCE PROGRAM FROM THE PPS GENERAL FUND BUDGET TO THE RISK MANAGEMENT FUND AND THE REALIGNMENT OF THE PPS BUDGET TO ACCOMMODATE THE TRANSFER, INCLUDING BY MOVING THE INITIAL FY 2015-16 HEALTH INSURANCE RESERVE OF $5,763,696 FROM THE GENERAL FUND TO THE RISK MANAGEMENT FUND.” Ayes: Cherry, Edmonds, Meeks, Moody, Psimas, Whitaker, Wright Nays: None 16 - 135 - Adoption of an ordinance accepting a Haz-Mat Team Enhancement Grant in the amount of $70,000 from the Virginia Department of Emergency Management and appropriating said funds in the FY 2015-16 Grants Fund for use by the Department of Fire, Rescue and Emergency Services. Vision Principle: Sustainable Neighborhoods.