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Commissioner Shehan - Financial and Management Services - Budget - To Appropriate General Fund Balance for Projected Workers Compensation in First Quarter FY 2027 ($700,155)
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STAFF CONTACT
Scott Attaway - Financial and Management Services - 704-866-3152
BUDGET IMPACT
budget
General Fund: Increase fund balance appropriations revenue by $700,155. Increase Insurance expenditures by $700,155.
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BACKGROUND
During development of the FY 2027 Adopted Budget, it was determined that estimated workers' compensation costs would not be included in departmental operating budgets. Instead, funding for these costs will be appropriated on a quarterly basis. This approach addresses two primary concerns: (1) to provide increased visibility and oversight of workers' compensation expenditures by the Board of Commissioners, and (2) to improve budget accuracy by appropriating amounts that more closely reflect actual projected claims and settlement costs as they become known.
This Board Action appropriates General Fund, fund balance to provide sufficient budget authority for insurance premiums, workers’ compensation expenses, and other insurance-related services for the first quarter of FY 2027 (July - September). The amount is based on an early projection of anticipated costs and will be refined throughout the fiscal year as additional claims information becomes available and future quarterly appropriations are presented to the Board. Any unspent budget at fiscal year-end will be added to Assigned Fund Balance for Risk Reserves in accordance with the FY 2027 Adopted Budget Ordinance.
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request (BCR)