HomeMy WebLinkAboutResolution No. 2014-18Suggested by: Administration
CITY OF KENAI
NO. 2014 -18
• RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
• BUDGET TRANSFER WITHIN THE GENERAL FUND FROM NON DEPARTMENTAL -
CONTINGENCY TO NON - DEPARTMENTAL - INSURANCE FOR PAYMENT OF
INSURANCE LITIGATION DEDUCTIBLES.
WHEREAS, pursuant to the City's liability insurance coverage through Alaska Public
Entity Insurance, the City is liable for certain varying deductibles in litigation costs for
lawsuits filed against the City; and,
WHEREAS, the City has recently received invoices from Alaska Public Entity
Insurance for deductibles related to litigation costs; and,
WHEREAS, these potential costs are not separately budgeted for due to the
infrequency and unpredictability of lawsuits filed against the City; and,
WHEREAS, annually $75,000 in contingency funds are appropriated in the General
Fund's Non - Departmental budget for unexpected expenditures of which $55,100
remains available for budget transfer; and,
WHEREAS, pursuant to Kenai Municipal code 7.25.00 City Budget Control, a budget
transfer over $5,000 requires Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA,
Section 1. That the following budget transfer be made:
General Fund
From:
Non - Departmental - Contingency $ 27,605
To:
Non - Departmental - Insurance
$ 27,605
Resolution 2014 -18
Page 2 of 2
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of March,
2014. )
PAT PORTER, MAYOR
ATTES
Sandr M di h, Cio Clerk
Approved by Finance:
"Villaye with a Past, C# with a Future"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014
To: Rick Koch, City Manager
✓� (; From: Terry Eubank, Finance Director
Date: February 26, 2014
Re: Recommendation for passage of Resolution 2014 -18
The purpose of this memo is to recommend passage of Resolution 2014 -18. Pursuant to the
City's liability insurance coverage through Alaska Public Entity Insurance, the City is liable for
certain varying deductibles in litigation costs for covered lawsuits filed against the City. The City
has recently received invoices from Alaska Public Entity Insurance for deductibles related to
covered litigation costs. These potential costs are not separately budgeted for due to the
infrequency and unpredictability of lawsuits filed against the City. A transfer of funds from
General fund Non - Departmental - Contingency to Non - Departmental - Insurance is required for
payment of the above referenced invoices.