HomeMy WebLinkAboutPO 6691: INCREASING THE CITY OF PORT ARTHUR BUDGET OR THE FISCAL YEAR BEGINNING OCTOBER 1, 2017 AND ENDING SEPTEMBER 30, 2018 ort rthur
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INTEROFFICE MEMORANDUM
Date: March 16, 2018
To: Harvey Robinson, Interim City Manager
From: Andrew Vasquez, Finance Director
RE: Insurance Claims and Premiums
Mr. Robinson,
This request is to increase the General Liability Fund 612 budget by$600 thousand. The reason is
there were not sufficient revenues and expenditure amounts included in the 2018 budget. Typically it
is difficult to forecast claims to be paid out. Claims consist of deductions paid on loss claims and legal
action claims against the City. This year the City experience is higher volume of both. The deductions
and legal claims against the City is approximately$498 thousand for the current fiscal year through
mid April. Premiums thus far are approximately$1 million. Below is a summary of the actual to
budget for this fund as it stands now.
General Liability Fund Budget YTD Variance
612 0000 371 10 01 General Fund 195,000
General Libility Revenue
612 1702 581 52 00 Insurance 1,586,715 1,165,670
612 1702 581 54 00 Professional Services
612 1702 581 99 00 Claims Accrual 195,000 378,010
612 7000 741 99 00 Transfer to Other Funds -
General Libility Expense 1,781,715 1,543,680 238,035
Net Change(Revenue less Expenditures) (1,586,715)
Based on the trending claims and increases in premiums, an increase of the budget of$600 thousand
is necessary and can be taken from the existing$811 thousand fund balance. After the current wind
storm premium of$456 thousand is paid, the fund will have $382 thousand remaining for the year.
What remains, if any, at the end of the year will revert back to fund balance.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur.Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P. O.NO. 6691
KD 4/19/2018
ORDINANCE NO.
AN APPROPRIATION ORDINANCE INCREASING THE CITY
OF PORT ARTHUR BUDGET FOR THE FISCAL YEAR
BEGINNING OCTOBER 1, 2017 AND ENDING SEPTEMBER
30,2018 BY$600,000 FOR THE GENERAL LIABILITY FUND.
WHEREAS, in accordance with Article XII, Section 9, of the City Charter, the City Council may
make emergency appropriations from time to time; and
WHEREAS, the City Council may make budget amendments for emergencies under Section
102.009 and for Municipal purposes under Section 102.010 Local Government Code; and
WHEREAS, on September 28, 2017, the City Council approved and adopted Ordinance 17-39,
which appropriated the 2017-2018 budget.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the following funds/departments Budget be increased as shown:
General Liability Fund $ 600,000
Section 3. That Section 13 of Ordinance 17-39 is amended to read:
That there be and is hereby appropriated the sum of Two Million, Three Hundred Eighty One
Thousand, Seven Hundred Fifteen Dollars ($2,381,715) to the General Liability Fund for the payment of
claims arising from torts and other causes of action against the City.
Section 4. The unassigned Working Capital Balance in the General Liability Fund will be
reduced by $600,000 to $211,771 at the end of this fiscal year if all other revenues and expenditures
come in as budgeted.
Section 5. That a copy of the caption of this Ordinance be spread upon the minutes of the
City Council.
Section 6. That this Ordinance shall be effective immediately.
READ, ADOPTED, AND APPROVED, this day of April 2018, AD, at a Regular
Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
Ayes: Mayor
Councilmembers:
NOES:
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
alecia Tizeno, City torney
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
Andrew Vasquez, Director of Finance