HomeMy WebLinkAboutRes2002-109
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CITY OF SEWARD, ALASKA
RESOLUTION 2002-109
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $145,135.50 FROM THE GENERAL FUND
FUND BALANCE TO THE GENERAL FUND, GENERAL SERVICES,
HEAL TH INSURANCE ACCOUNT FOR THE PURPOSE OF FUNDING AN
ASSESSMENT FROM THE ALASKA PUBLIC UTILITIES INSURANCE
TRUST TO FUND HEALTH PLAN RESERVES
WHEREAS, the City of Seward participates in the Alaska Public Utilities Insurance
Trust (APUlT) for the purpose of providing healthcare benefits for eligible employees; and
WHEREAS, APUIT is a self-insured Trust which purchases "stop loss" insurance to
cover claims that exceed $100,000 in a calendar year; and
WHEREAS, APUIT experienced high utilization and high claims during calendar year
2000 and extremely high claims during calendar year 2001; and
WHEREAS, APUlT's fund balance was reduced by $1,123,062 during 2001 due to the
high utilization, high claims and increased health care costs; and
WHEREAS, health contribution rates for the City of Seward were increased 35% for
calendar year 2002; and
WHEREAS, APUlT has changed administrators in order to save costs and improve
efficiencies with the plan; and
WHEREAS, during the transition between administrators, APUIT experienced a cash
flow shortage as a result of the low fund balance and due to a backlog of claims from the prior
administrator while also paying new claims; and
WHEREAS, in order to set up the new claims account with the new administrator,
APUIT approved an emergency assessment to all participants equal to two months health
contributions; and
WHEREAS, APUlT is a self-insured health plan under federal regulations and each
participant is responsible for the operation of the plan; and
WHEREAS, the additional funds are needed by APUIT in order to meet cash flow
requirements, since their fund balance had been significantly reduced by the high claims during
2001; and
CITY OF SEWARD, ALASKA
RESOLUTION 2002-109
WHEREAS, the City may not have any alternative health plans available for its
employees; and
WHEREAS, Willis of Alaska still feels that the APUIT is a viable option for the City's
health plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. Funds in the amount of$145,135.50 be appropriated from the General Fund
fund balance, account no. 101-0000-3050 to the General Fund, General Services, Health
Insurance, account no. 101-1180-5070 for the purpose offunding an assessment from APUIT to
fund health plan reserves.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th
day of November, 2002.
THE CITY OF SEWARD, ALASKA
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Stu Clark, Vice-Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Shafer, Dunham, Branson, Clark, and Valdatta
None
Blatchford, Orr
None
ATTEST:
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