HomeMy WebLinkAboutReso. 1986 - 190 - designating the insurance reserve fund as a "restricted reserve" fund r • r
RESOLUTION NO. 0,- 190
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
DESIGNATING THE INSURANCE RESERVE FUND AS A "RESTRICTED
RESERVE" FUND.
WHEREAS, the City of Redding is currently self-insured under
a self-insured retention of $250 , 000 per occurrence, with
insurance coverage from $250 ,000 to $1 , 000, 000 per occurrence,
with self-insurance beyond that limit; and
WHEREAS, the City of Redding is exploring options for
insurance or pooling of risks for catastrophic losses, but it is
not likely that coverage for the vast majority of claims within
the $250 , 000 self-insured retention level will become available
in the near future; and
WHEREAS, a reliable insurance reserve fund is necessary to
protect against potential self-insured losses; and
WHEREAS, the City of Redding has set aside budget reserves
of $2 , 407 , 960 for the insurance fund in the fiscal year 1986-87
tentative budget; and
WHEREAS, it is sound risk management and accounting policy
to clearly establish the insurance fund reserves as a "restricted
reserve" that can only be spent for expenses arising from
liability losses;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Redding that the budget reserves set aside for the
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insurance fund for the City of Redding shall hereafter be desig-
nated a "restricted reserve, " and said funds shall only be
expended for the payment of expenses related to claims against
the City of Redding and liability losses incurred by the City of
Redding, purchase of insurance policies, and claims
administration.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 4th day of August , 1986, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Carter, Gard, & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Fulton & Johannessen
ABSTAIN: COUNCIL MEMBERS : None
(-2(5:if3
MIKE DAHL, Vice Mayor
City of Redding
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
' ANDALL A. HAY , City Attorney
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