WHEREAS, in 2001, the Council adopted a comprehensive set of City financial policies via a series of resolutions; and
WHEREAS, one component of these new financial policies was Resolution 30379, which adopted updated financial policies for the various General Fund Subfunds of the City of Seattle; and
WHEREAS, also as part of this review and adoption of financial policies the Council adopted a work program resolution (Resolution 30388) to guide follow-up work in several areas; and
WHEREAS, Resolution 30388 directed the Personnel Department and the Department of Finance to propose certain additional financial policies for the Industrial Insurance Subfund of the General Fund, and for the Unemployment Insurance Subfund of the
General Fund; and
WHEREAS, the Executive has proposed and the Council wishes to adopt new policies in the areas stated above; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR
CONCURRING, THAT:
Section 1. Industrial Insurance Subfund of the General Fund. Policy 5 in Exhibit I of
Resolution 30379 is hereby superceded, and the following three policies are adopted for the Industrial Insurance Subfund:
Policy 1. Designation and Use of Catastrophic Claims Set Aside. The City will allow unreserved fund balance in the Industrial Insurance Subfund to accumulate as a Catastrophic Claims Set Aside up to a maximum of One Million Dollars ($1,000,000) at
year end, and be designated to cover the costs of catastrophic industrial insurance claims within departments with General Fund funding (that is, all non-utility departments). In order for a department to be eligible to use this funding, the claim or
group of related claims must exceed the claimant department's yearly budget for industrial insurance costs (excluding administrative, or "pooled" costs) by more then 20 percent and the Director of Finance must find that there is no projected surplus
elsewhere within the department's budget. For purposes of this calculation, the budgeted amount for industrial insurance costs will be the one recommended by the Personnel Department. Funding for this set aside will come from (a) any subrogation
revenues received on behalf of General Fund-funded departments (see the policy on designation of subrogation revenues), and (b) any over-recovery of pooled costs from General Fund-funded departments.
Policy 2. Designation of Subrogation Revenues. Any subrogation revenues received on behalf of General Fund-funded departments will be used to fund the Catastrophic Claims Set Aside up to its maximum. Any subrogation revenue from General Fund-funded
departments in excess of this amount, and any subrogation revenues received on behalf of Seattle City Light and Seattle Public Utilities, will be subject to the policy on use of undesignated and unreserved fund balances.
Policy 3. Use of Undesignated and Unreserved Fund Balances. Any undesignated and unreserved fund balances are available to fund future under-recovery from departments for industrial insurance costs, or to fund industrial insurance rate stabilization,
or to rebate back to the contributing City funds.
Section 2. Unemployment Insurance Subfund. Policy 4 in Exhibit K of Resolution 30379 is hereby superceded, and the following policies are adopted for the Unemployment Insurance Subfund:
Policy 1. Designation of Set Aside for Unemployment Cost Fluctuations. The City will allow unreserved fund balances in the Unemployment Insurance Subfund to accumulate up to a maximum of Five Hundred Thousand Dollars ($500,000) in order to cover
fluctuations in unemployment costs without immediately increasing charges to departments.
Policy 2. Use of Undesignated and Unreserved Fund Balances. Any undesignated and unreserved fund balances are available to fund future under-recovery from departments for unemployment insurance costs, or to fund unemployment insurance rate
stabilization, or to rebate back to the contributing City funds.
Section 3. Review of Attached Policies. The Council finds that the policies in this resolution should be reviewed as part of the 2006 scheduled review for all City financial policies.
Adopted by the City Council the ______ day of ______________, 2002, and signed by me in open session in authentication of its adoption this _____ day of _______________, 2002. ______________________________________ President ______________of the City
Council
THE MAYOR CONCURRING: ________________________ Gregory J. Nickels, Mayor
Filed by me this __________ day of _________________, 2002. ______________________________________ City Clerk
August 13, 2002 Version 4