(A) Creation.
(1) A general nonreverting fund is created to be known as the Liability Reserve Fund. The Fund is created for the purpose of setting aside monies assessed on all operations and departments of the city for the payment of claims arising from liability obligations for the payment of money in an amount established under I.C. 34-13-3-4 or any other claim for which insurance coverage is not provided for, including related expenses for processing and defending the claims.
(2) The City Attorney may use, in his or her discretion, a portion of the Liability Reserve Fund to purchase liability insurance to insure all or a part of the city's liability obligations.
(B) Payment of claims. The Liability Reserve Fund shall be allowed to accumulate to a total of $400,000. Claims payable from the Fund for any liability whether or not it is covered under I.C. 34-4-16.5 shall be limited as follows:
(1) Up to $200,000 for injury, death or damage suffered by any one person as the result of the act or omission from which the liability arises;
(2) Up to $400,000 for all injury, death or damage suffered by all persons as the result of the act or omission from which the liability arises;
(3) No amount may be paid from the Fund in respect to punitive damages paid by or assessed against the city; and
(4) No claim may be settled and payment made from the Fund without the recommendation of a majority of the members of the Claims Review Committee.
(C) Investment. The Fund shall be invested by the Controller, with all earned interest belonging to the Fund in its entirety.
(D) Source of funds. The Fund shall be funded by the amounts appropriated by the Council as a part of the annual general budgeting process for all departments, bureaus and boards of the city. Initially, the Fund shall be funded by way of a transfer from presently appropriated accounts. In addition, the Council may approve additional appropriations from time to time as needed.
(Ord. G-86-142, passed 6-2-1986; Ord. G-97-215, passed 11-21-1997)
Cross-reference:
Allowance of city claims; authority, see § 35.03