Agenda Packets - 1986/11/10 - Laserfiche WebLink

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MEMO TO: MAYOR AND CITY COUNCIL FROM: FINANCE DIRECTOR - TREASURER BRAGER DATE: NOVEMBER 13, 1986 SUBJECT: GENERAL FUND BUDGET TRANSFERS Jt,J 5 The City recently received billings and paid $11,300.00 for worker's compensation audits to First Insurance Twin Cities. Payment of $1,766 was made for the period May 1, 1984 - April 30, 1985 and payment of $9,534 was made for the period May 1, 1985 - April 30, 1986, Corporate Risk Managers, Inc., our insurance consultants and I had disputed the 1984-e5 audit since August 1985 due to incorrect classi- fications of several employees. At that time the audit indicated an additional premium of $4,671 was due. The corrected audit billing was $1,766 and results in a savings of $2,995 to the City. The 1985-86 audit requested an additional premium of $ 9,534 due to underestimation by the agent of payrolls for police, parks, and recreation employees. These additional premiums are billed because of the manner in which worker's compensation premium payments are handled. At the beginning of the policy period a deposit premium is paid for that period based upon estimated payrolls. At the end of the policy period our payroll records are subject to audit by a representative of the insurance company and a premium is calculated that is based on actual payrolls. That premium is compared to the deposit premium and, in this instance, we are billed for additional premiums. The insurance account, 100-190-4480, will be approximately $500 over budget upon payment of the final installment of this year's premiums. Staff requests a budget transfer of $11,800.00 from contingency to the insurance account to cover these budget overages. Another problem area in the budget involves the purchase of a new Civil Defense Siren. The 1986 Budget anticipated purchase of a new siren at a cost of $35,000 to be financed by a loan from the Special Projects Fund. The loan was to be repaid over a five year period. The siren was purchased at a cost of $20,839. At the time the siren was ordered we learned that we would be receiving Revenue Sharing monies in 1986 which we had not budgeted for. Revenue Sharing was to be used for fire protection services and the amount saved by using Revenue Sharing rather than our own funds, $39,225, was transferred to contingency. Staff proposes to ammend *-he 1986 Budget to take into account these events which occurred subsequent to it's adoption. They are: