HomeMy WebLinkAboutReso 146-95 InsuranceReserveRESOLUTION NO. 146 - 95
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
RESCINDING RESOLUTION NO. 34-87
ESTABLISHING AN INSURANCE RESERVE FUND
WHEREAS, In 1987 the City Council adopted Resolution Number 34-87 which established a liability
insurance reserve fund; and
WHEREAS, Fiscal Year 1986/87 was the first year of participation in ABAG PLAN, a self-insured public
agency pool providing liability coverage to the City; and
WHEREAS, The Reserve Fund was intended to provide a source of funds in the event that the liability
claims experience was extraordinary and exceeded budgeted resources; and
WHEREAS, In accordance with the adopted policy, the City General Fund financial records in the past, have
reflected a designation of Fund Balance in the amount of $137,210 for Liability Insurance Claims; and
WHEREAS, Beginning with the Comprehensive Annual Financial Report for the period ending June 30,
1995, new reporting standards are in effect; and
WHEREAS, The Govemmental Accounting Standards Board (GASB) now requires that financial statements
of public entities which utilize self- insured coverage, disclose an estimated liabihty for liability insurance
losses; and
WHEREAS, It would be duplicative to retain both the designated Fund Balance and a Liability for the same
purpose on the City Financial records.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby rescind
Resolution 34-87, which established an Insurance Reserve Fund.
BE IT FURTHER RESOLVED that effective with the Comprehensive Annual Financial Statement for the
period ending June 30, 1995, the General Fund Financial records shall reflect a Liability for Insurance claims
in accordance with GASB pronouncements and Generally Accepted Accounting Principles as applied to
governmental entities.
PASSED, APPROVED AND ADOPTED this 12th day of December, 1995.
AYES:
Councilmembers Barnes, Burton, Howard, Moffatt and Mayor Houston
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: ~C~i~~~
h: cc-rntgNresinsrv.doc
K 2 / dec- 9 5 /reso-ins. doc
Mayor