pages: CityCouncil/2009-02-07.pdf, 19
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CityCouncil | 2009-02-07 | 19 | done due diligence to get to true numbers; the question is what needs to be done now. Councilmember Matarrese stated building a budget starting with the fixed costs makes sense. Mayor Johnson inquired whether the negative amounts are due to not charging enough or departments not paying. The Interim Finance Director responded the issue is a system issue, not departmental; funds are taken out of department budgets. Mayor Johnson inquired whether the amount is from the current fiscal year. The Interim Finance Director responded in the negative; stated the amount has been reached over many years; $2.6 million is too much to absorb. Mayor Johnson requested an explanation of the significance of having a negative in the workers' compensation fund. The Interim Finance Director stated workers' compensation premiums and claims are being paid from other funds. The City Attorney inquired how much of the workers' compensation deficit is a build up over time from not charging departments and how much is from choosing not to backfill from the account used to pay claims. The Interim Finance Director responded both; stated it is not uncommon for an ISF to run negative because a claim that was estimated to cost $250,00 might end up costing $500,000; the additional $250,000 should be factored in the next year and the department would have to pay an increased rate. the fund should be built up to create a reserve. Mayor Johnson inquired whether claim payment comes from the General Fund and is reimbursed. The Interim Finance Director responded in the negative; stated a transfer is not made between the General Fund and the ISF; the claim is paid and adds to the cumulative negative. Mayor Johnson inquired where does the money come from. The Interim Finance Director responded the cash comes from the City's cash account and is negative cash. Special Meeting Alameda City Council 19 February 7, 2009 | CityCouncil/2009-02-07.pdf |