HomeMy WebLinkAbout5273 ORDINANCE NO. 5273
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, creating Chapter 3 32, Self-Insured
Health and Welfare Reserve Fund.
WHEREAS,Chapter 48.62 RCW authorizes the governing body of local government
to individually self-insure health and welfare benefits; and
WHEREAS, self-insuring health and welfare benefits for City employees and
LEOFF 1 retirees offers several advantages including lower administrative costs than charged by
commercial carriers, greater control over the design of the benefits program,easier access to
utilization and claims data, improving the employer's ability to evaluate health benefit costs and
implement cost containment measures, improved cash flow generated by keeping funds in-house
until needed for payment of claims, and avoidance of state insurance premium taxes, and
WHEREAS,the City Council has established a plan of management,operation, and
funding of an individual self-insured health and welfare benefits program in accordance with Chapter
48 62 RCW; and
WHEREAS,the City Council now wishes to establish funding strategies and levels
for the program; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON,WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. A new chapter,Chapter 3 32 of the Bremerton Municipal Code
entitled "Self-Insured Health and Welfare Reserve Fund" is hereby created to read as follows
Chapter 3.32
SELF-INSURED HEALTH AND
WELFARE RESERVE FUND
3.32.010 FUND ESTABLISHED.
There is established a fund to be called the Self-Insured Health and Welfare Reserve Fund
("Reserve Fund"). The Reserve Fund is established to fund the City of Bremerton's Self-Insured
Health and Welfare Program ("Program").
3.32.020 AMOUNT AND SOURCE.
The minimum Reserve Fund balance shall be established in the amount equal to at least four
months of Program expenses or at an amount recommended by an independent actuarial,whichever
is greater("Minimum Reserve"). The Minimum Reserve established herein includes the minimum
reserve amount for Program expenses as well as an additional contingency reserve required pursuant
to WAC 200-110-040. All of the revenues from City and employee contributions to the Program
shall be deposited into the Reserve Fund The Reserve Fund shall be fully funded to the Minimum
Reserve amount by the end of the first three years of the Program,December 31,2017.
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Self-Insured Health and
Welfare Reserve Fund
3.32.030 ADMINISTRATION AND EXPENDITURE.
The Reserve Fund shall be operated as a separate fund administered by the City Treasurer
and the Human Resource Manager pursuant to the requirements of Chapter 200-110 WAC. All
monies received by the fund,together with investment earnings thereon, shall be expended only to
administer and operate the Program Including payment for services and payment of medical and
prescription claims authorized under the Program. The City shall obtain an audit on claims
expenditures and fund balances of the Reserve Fund every three years or as otherwise required by
WAC 200-110-120,as currently enacted or hereinafter amended.
3.32.040 ADJUSTMENTS TO RESERVES.
The Reserve Fund shall be adjusted as follows:
(a) If at any time the cash reserve balance of the Reserve Fund is less than the Minimum
Reserve,a repayment plan shall be established by the Mayor and approved by the City Council to
replenish the Reserve Fund to its minimum level if deemed necessary to administer and operate the
Program.
(b) Should the cash reserve balance of the Reserve Fund at any time exceed the
Minimum Reserve,the excess cash reserve shall be used for reduction in premiums made by the City
and employees to the Program, used to add additional benefits and/or be maintained in the Reserve
Fund if deemed appropriate.
SECTION 2. Severabdity. If anyone or more sections, subsections, or sentences
of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity
of the remaining portion of this Ordinance and the same shall remain in full force and effect
SECTION 3. Effective Date. This ordinance shall take effect and be in force ten
(10)days from and after its passage,approval and publication as provided by law
PASSED by the City Council the _day of Y �I , 2015
W
GR WHEELER,Council President
Approved this G 5� day of 2015
PATTY LEN ayor
'TEST. S TO FOR
SHANNON CORIN,City Clerk R ER A. LUBOVICH, City Atto
PUBLISHED theday of h/ 12015
EFFECTIVE the �- day of ,2015
ORDINANCE NO.
R\Legal\Legal\Files\Current Active Files\Bremerton Self-Insurance Health Program\Sel f-Insurance Reserve Fund5-Ord Final docx
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Self-Insured Health and
Welfare Reserve Fund
AFFIDAVIT OF PUBLICATION
Account#42742 AD#20146315
STATE OF WASHINGTON
COUNTY OF KITSAP
I,Teresa Hull,being first duly sworn on oath,deposes and says:That she is now,and at all times embraced
in the publication herein mentioned was the principal clerk of the printers and publishers of KITSAP SUN;
that said newspaper has been approved as a legal newspaper by order of the Superior Court of the County
of Kitsap, in which County it is published and is now and has been for more than six months prior to the
date of the publication hereinafter referred to,published in the English language continually as a daily
newspaper in Bremerton, Kitsap County,Washington,a weekly newspaper in Kitsap County,Washington
and is now and during all of said time, was printed in an office maintained in the aforesaid place of
publication of said newspaper; that the following is a true text of an advertisement as it was published in
regular issues(and not in supplement form)of said newspaper on the following date,to wit: And on April
6,2015 such newspaper was regularly distributed to its subscribers during all of said period.The full
amount of the fee charged for the foregoing publication is the sum of$33.89.This amount has not been
_ paid in full.
Qd
tary Public
f Washington (Signature of Principal Clerk)
A SULLIVAN
t Expires Aug 4, 2018
Subscpril 24,2015.
ORDINANCE NO.5273
AN ORDINANCE of the City Council of the City of Bremerton,Washington,creating Chapter 3.32,Self-
Insured Health and Welfare Reserve Fund.
PASSED by the City Council on the Ist day of April, 2015.
The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600,
Bremerton,WA 98337.
APRIL 6,2015
AD#20146315