2012-2013 Budget - City of Saginaw MI

SELF - INSURANCE FUNDREVENUE BUDGET SUMMARYAnother Internal Service Fund to the city is the Self-Insurance Fund. This fund was established by CityCouncil to serve as a general insurance reserve forliabilities and claims not covered by commercial carriersas well as payments of deductibles. This fund accountsfor the payment of insurance premiums, the distributionof insurance costs to other city funds, and records theinsurance claims liability. The major revenue source forthis fund is “Charge for Services” or internal user feesfor those departments that must have general liabilityinsurance coverage on equipment and services. The citycontracts with a third party administrator, Saginaw BayUnderwriters, who obtains the best insurance rates. TheCity’s two policies are renewed twice a year, in Februaryand July.For FY 2013, the Self-Insurance Fund’s revenues will be$1,099,439. This is a decrease of $1,258,338, or -53.37%, from the previous fiscal year. This is based onan anticipated reduction in the general liability insurancefee from both renewals by Saginaw Bay Underwritersand a reduction in the appropriation of fund equity fromthe previous fiscal year.SUMMARY OF REVENUES2008/09 2009/10 2010/11 2011/12 2011/12 2011/12 2012/13Actual Actual Actual Approved Adjusted Projected ApprovedCharge for Services 3,097,522 1,157,024 1,453,362 1,179,633 1,179,633 1,179,633 1,099,439Interest and Rents 0 493 (981) 0 0 (2,148) 0Other Revenues 140,325 0 3,042,099 1,178,144 1,178,144 1,051,589 0REVENUE TRENDSTotal Revenues 3,237,847 1,157,517 4,494,480 2,357,777 2,357,777 2,229,074 1,099,4393,500,0003,000,0002,500,000Total Self -Insurance Revenues Since 20022,000,0001,500,0001,000,000Total Self InsuranceRevenues500,000-The above graph reflects numerical data from FY 2002 – FY 2011 Actual Revenues, and FY 2012 and FY 2013 ApprovedRevenues Budgets. From FY 2001-2004 there has been a steady increase in the amounts collected from the userdepartments. The incline during these fiscal years is attributed to the steady increase in general liability insurance ratesthat plateaus in FY 2005. The Self-Insurance revenues fluctuated dramatically from FY 2006-2011. Between FY 2008303