Laserfiche WebLink
<br />RESOLUTION NO. <br /> <br />,. <br /> <br />RESOLUTION APPROPRIATING AND TRANSFERING $1,100,000 <br />FROM THE GENERAL FUND UNRESERVED FUND BALANCE TO THE <br />SELF INSURANCE FUND. THUS REDUCING THE GENERAL FUND <br />AVAILABLE BALANCE BY $1.1 MILLION <br /> <br />WHEREAS, during the fiscal year 2004-05, the City's Self Insurance Fund <br /> <br />experienced a net loss of $1.7 million due to the rising costs of the workers <br /> <br />compensation claims. This net loss caused the Self Insurance Fund to have a deficit <br /> <br />balance of $1.5 million on June 30,2005; and <br /> <br />WHEREAS, during fiscal year 2005-06, the Self Insurance Fund experienced net <br /> <br />income of $437,000 leaving a deficit balance of $1.1 million in June 30, 2006; and <br /> <br />WHEREAS, on May 22,2006, the Finance Director presented a financial update <br /> <br />which included a summary of items that may have adverse effects on the general fund; <br /> <br />and <br /> <br />WHEREAS, for the fiscal year that ended June 30, 2006, resources available for <br /> <br />subsequent years' expenditures in the General Fund increased from $17.9 million to <br /> <br />$21.9 million; and <br /> <br />WHEREAS, On December 11,2006 the City Council appropriated $2.5 million of <br /> <br />this amount to supplement the budget for the Redwood Shores Library construction <br /> <br />project; and <br /> <br />WHEREAS, additionally on December 11, 2006 the City Council Finance <br /> <br />Committee held a meeting to discuss the possible uses of the General Fund Reserves. <br /> <br />It was decided that the best use at this time would be to cover the deficit balance in the <br /> <br />City's Self Insurance Fund; and <br /> <br />ATTY/RESO/RESO.1675 <br />121906 <br /> <br />1 <br /> <br />"78 <br />Page 2 <br />