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2002~03 <br /> Changes in Expenditures <br /> <br />3. Police <br /> A. The Police Department received two grants from the Office of Traffic 115,658 <br /> Safety. An appropriation must be established so that the Police <br /> Department may expend these funds. <br /> <br /> B. The Police Department received a criminal justice council grant for 40,000 <br /> the Police Activities League program. An appropriation must be <br /> established so that the Police Department may expend these funds. <br /> <br /> C. The Police Department received a State technology grant. An 27,000 <br /> appropriation must be established so that the Police Department <br /> may expend these funds. <br /> <br />4. Community Development Services <br /> A. The City Council approved a contract on October 7, 2002 with 45,000 <br /> Freeman, Tung and Bottomley for a variety of urban design <br /> and planning services, a portion of which ($45,000) will be <br /> reimbursed by Abbott Labs. An appropriation must now be <br /> established to reflect this allocation in the budget. <br /> <br /> Total General Fund ~460~459 <br />WORKER'S COMPENSATION INSURANCE FUND <br /> <br />1. A budget amendment is required to cover expenditures $'1,093,973 <br />in the City's workers' compensation fund. Various <br />factors are contributing to the escalating costs required to fund this <br />program such as several major case settlements, aggressive <br />case management and closures, increased medical costs, <br />increased excess insurance premiums, and changes in state law <br />providing increased benefits. <br /> <br /> The Human Resources Department established its current budget over <br /> a year ago. Since then, several unanticipated factors have contributed <br /> to a deficit for this budget. One factor was a 241% increase in excess <br /> insurance premiums due to effects on the insurance industry from <br /> losses resulting from the 9/11 catastrophe. ABAG, our third party <br /> administrator, suddenly decided to leave the workers' compensation <br /> administration business. A positive result of our transition to a new <br /> third party administrator was the discovery of several unmanaged <br /> claims. However, it did cost us over $400,000 to settle and close out <br /> these claims in fiscal year 2002/03. In addition, changes in workers' <br /> compensation legislation increased medical costs by providing <br /> increased benefits to certain classifications of employees, such as <br /> <br /> B-2 <br /> <br /> 2247 <br /> <br /> <br />