HomeMy WebLinkAbout11. 21-591DECEMBER 14, 2021 21-591 RESOLUTION
(CARRIED___7-0___ LOST_______ LAID OVER_______ WITHDRAWN_______)
PURPOSE: APPROVE BUDGET TRANSFERS TO PROVIDE ADDITIONAL
FUNDING FOR WORKERS COMPENSATION FUND
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, the City of Oshkosh operates an Internal Service Fund, Workers
Compensation Fund, to account for interdepartmental charges and payments for workers
compensation claims; and
WHEREAS, as of December 31, 2020, the Workers Compensation Fund had a
negative fund balance of $465,901; and
WHEREAS, the Workers Compensation Fund is estimated to be in a negative
position on December 31, 2021 in the amount of $939,761; and
WHEREAS, the City Council approved the closure of the Fire Pension Fund and
the transfer of $147,056; and
WHEREAS, the City Council approved the transfer of $500,000 from the Police
Pension Fund; and
NOW, THEREFORE BE IT RESOLVED by the Common Council for the City of
Oshkosh that the following amounts be transferred from listed funds to the Workers
Compensation Fund 0603-0909-5299, Transfer to Other Funds:
General Fund $330,000 0100-0914-7470, Transfer to Other Funds
Transit Utility $ 17,000 0511-1728-7470, Transfer to Other Funds
Weights and Measures $ 600 0571-0720-7470, Transfer to Other Funds
Inspections Fund $ 1,300 0571-0750-7470, Transfer to Other Funds
Water Utility $ 22,400 0541-1810-7470, Transfer to Other Funds
Sewer Utility $ 13,800 0551-1910-7470, Transfer to Other Funds
Storm Water Utility $ 2,900 0561-2010-7470, Transfer to Other Funds
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Finance Director
DATE: December 7, 2021
RE: Approve Additional Funding for the Workers Compensation Fund
BACKGROUND
The City of Oshkosh maintains a separate fund to account for workers compensation
payments made by the City since it became self-insured. The fund not only makes
payments, it receives its funding by making internal charges to the various departments.
Due to several large and unanticipated claims, the fund has paid out more claims than
funding received by internal charges. The fund ended up on December 31, 2020 with a
negative fund balance of $465,901. For 2021 the fund received $744,140 in revenue from
charges to other departments. In 2021 it is projected that the fund will pay out $1,218,000,
further increasing the negative position to an estimate of $939,761.
ANALYSIS
Assuming the City Council approves the closure of the Fire Pension Fund, approximately
$147,056 will be transferred to the Worker Compensation Fund. In addition assuming
the City Council approves the transfer from the Police Pension Fund, $500,000 will also
be moved to the Workers Compensation Fund. With these two transfers the Workers
Compensation will be approximately $292,705 in a negative position.
Additional funding is needed to get the fund in a positive position. Staff is
recommending that $388,000 be transferred into the fund. Of this amount, $330,000 will
come from tax supported funds and the remaining $58,000 will be allocated to the
enterprise funds. The actual allocation is included in the resolution.
The recommendation is that the $330,000 be reallocated from General Fund Balance. As
of December 31, 2020, the General Fund Balance was $15,577,491. The maximum Fund
Balance per the City Council policy is $14,875,300, a difference of $702,191. Taking into
account previous City Council action allocating fund balance for the emerald ash contract
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
($125,000), appropriating funds for a phone system ($186,000), and appropriating funds
for the class and compensation study ($60,000), the remaining amount in fund balance
over the maximum set by policy is $331,191.
FISCAL IMPACT
The transfer of funds will restore the Workers Compensation Fund to a positive balance
with a small amount of fund balance carrying forward. The transfers from the Fire
Pension Fund and Police Pension Fund are funds that are no longer needed for payment
of pensions. The charges to the enterprise funds will be absorbed by their operations. The
use of fund balance will leave the General Fund balance at $1,191 over the maximum
amount of fund balance pursuant to City Council policy.
RECOMMENDATION
Staff recommends that Council adopt this resolution.
Respectfully Submitted, Approved:
Russ Van Gompel Mark A. Rohloff
Finance Director City Manager