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File #: RES. 2021-R023    Version: 1 Name:
Type: Resolution Status: Adopted
File created: 4/13/2021 In control: City Council
On agenda: 5/24/2021 Final action: 5/24/2021
Title: To adopt budgetary policies under which the City will endeavor to provide operating funds annually for capital maintenance purposes, the City's annual required contribution for other post-employment benefits, and a self-insurance claims reserve.
Patrons: Mayor Stoney
Attachments: 1. Res. No. 2021-R023, 2. 20210520 Finance - OPEB Presentation

Title

To adopt budgetary policies under which the City will endeavor to provide operating funds annually for capital maintenance purposes, the City’s annual required contribution for other post-employment benefits, and a self-insurance claims reserve.

Body

WHEREAS, the City desires to enhance the City’s financial standing by adopting budgetary policies under which the City will endeavor to provide operating funds annually for (i) capital maintenance purposes, (ii) the City’s annual required contribution for other post-employment benefits, and (iii) a self-insurance claims reserve;

NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:

That the City adopts the following budgetary policies:

1.                     It is the policy of the City to endeavor to appropriate annually operating funds in an amount equal to three percent of the tax revenues estimated to be received for the general fund during the year to the City’s capital budget for capital maintenance purposes, as the term “capital maintenance” is used in the application of generally accepted accounting principles.

2.                     It is the policy of the City to endeavor to appropriate annually operating funds in an amount equal to the City’s annual required contribution, as defined by the Governmental Accounting Standards Board, for the year as a contribution to the City’s other post-employment benefits trust established by section 1 of Ordinance No. 2018-196, adopted July 23, 2018.

3.                     It is the policy of the City to endeavor to appropriate annually operating funds in an amount equal to 20 percent of the anticipated premium costs and claim payments for the year to a self-insurance claims reserve within the City’s Risk Management internal service fund to address periodic spikes in claims experienced during future fiscal years.

BE IT FURTHER RESOLVED:

That the policies adopted by this resolution are effective upon this resolution’s adoption and are intended to be phased in over the next several fiscal years beginning with the fiscal year commencing July 1, 2021, and ending June 30, 2022.