(a) Council shall annually appropriate and reserve such money as is necessary, in the exercise of sound and prudent actuarial judgment, to cover potential liability, expense, loss and damage to the City and its officers and employees, which may arise or be claimed to have arisen from the performance of official duties during the ensuing calendar year. The amount so appropriated and reserved shall not be less than one hundred fifty thousand dollars ($150,000) for the balance of 1988 during which the City's self-insurance program is in effect, and not less than two hundred fifty thousand dollars ($250,000) for each of the subsequent four consecutive years.
(b) All money appropriated and reserved as provided in this section shall be maintained by the Director of Finance in a special fund and shall be disbursed solely for the purpose of administering the City's self-insurance program, including, but not limited to, disbursements for claims paid, costs of legal representation, fees paid to administering consultants, fees paid to expert witnesses, expenses incurred in the evaluation of claims, expenses incurred in preparation for trial or appeals, and court costs.
(c) The Director shall deposit the special fund created by this section in interest generating accounts with any of the financial institutions authorized by Council for deposit of other City funds. All interest generated by such deposits shall be transferred by the Director to the special self-insurance fund.
(d) Interest earned and any unencumbered surplus remaining in the special fund established by this section at the end of any fiscal year shall be carried over to the following year, and no amount thereof shall be transferred to any other fund.
(Ord. 149-1988. Passed 6-20-88.)
(e) On or before January 15 of the first year after establishment of a self-insurance program, and annually thereafter, no later than February 1 of every year, the Director of Finance shall submit a written report to the Mayor and Council detailing the amounts received and disbursed from the self-insurance fund during the preceding calendar year, including the persons to whom any such disbursements were paid and the reasons for such disbursements.
(Ord. 30-1990. Passed 2-5-90.)