To: Board of Supervisors
From: Human Resources
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
title
Supplemental Budget for the Liability Budget Unit (3524-354) in the Amount of $500,000 (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the attached supplemental budget in the Liability budget (3524-354) for Fiscal Year (FY) 2024-25 (4/5 Vote required)
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: Workforce & Operational Excellence
Strategic Plan Category: 3001 - Support a well-trained workforce
DISCUSSION:
The Risk Management-Liability budget (3524-354) received anticipated revenue, and this agenda item seeks to receive those funds and pay for unanticipated legal settlement costs which will be partially reimbursed when the case is closed by the county's excess insurance provider Human Resources anticipates a reimbursement from Public Risk, Innovation, Solutions and Management (PRISM) in the amount of approximately $725,000 for a refund on a claim above the county's self-insured retention (SIR) level. PRISM is an insurance risk sharing pool through which the county purchases excess liability, primary and excess workers' compensation, as well as various other insurance programs. Human Resources is recommending to utilize existing fund balance to pay settlement costs prior to receiving the insurance reimbursement.
The attached supplemental budget reflects these additional revenues utilized to cover overages in the Liability budget for FY 2024-25. Current settlement costs as well as closing several outstanding cases has created a situation where the Liability Fund has an excess of expenditures above budgeted costs. The Human Resources - Risk Management Division anticipates receiving revenue for the next FY from PRISM in relation to these current litigation cases which have exceeded the county's current SIR.
Per the dire...
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