Number
170148
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution reserving and appropriating up to $1,600,000 from the 2017 Common Council Contingent Fund to the 2017 Damages & Claims Fund and 2017 Insurance Fund Special Purpose Accounts.
Analysis
This resolution reserves and appropriates $1,600,000 from the 2017 Common Council Contingent Fund for the purpose of meeting financial obligations related City insurance policy premiums and to claims and litigation brought against the City.
Body
Whereas, Exposure of the City to claims, costs and other unanticipated litigation expenditures has increased significantly over the last 3 years as a result of settlements and payments arising from law enforcement litigation, uninsured motorist claims, and other matters in litigation including tax assessment appeals; and
Whereas, Settlements and payment of judgments in 2017 to date, and in matters recently before the Common Council, have required expenditures in excess of $2,773,700 from the Damages & Claims Fund Special Purpose Account (SPA); and
Whereas, Small claims settlement exposure continues at a high rate in 2017, with over $915,523 paid in 2016, and $250,404 in the first 4 months of 2017; and
Whereas, The current balance of funds in the 2017 Damages & Claims Fund SPA is $79,000: and
Whereas, The current balance of funds in the 2017 Insurance Fund is $14,000; and
Whereas, Two City crime insurance policy premiums totaling $64,000 are due in June; and
Whereas, These policies cover losses due to internal theft of City property; and
Whereas, It now appears that a minimum of $1,550,000 in additional funds will be necessary to meet current and anticipated obligations in 2017 payable from the Damages and Claims Fund SPA; and
Whereas, It now appears that a minimum of $50,000 in additional funds will be necessary to meet current obligations in 2017 from the Insurance Fund SPA
;now, therefore be it
Resolved, By the Common Council of the City of Milwaukee that $1,600,000 shall be reserved and appropriated from the 2017 Common Council Contingent Fund (0001-990-C001-006300), $1,550,000 allocated to the 2017 Damages & Claims Fund (0001-1490-S118-006300) and $50,000 allocated to the 2017 Insurance Fund (0001-1490-S143-006300); and, be it
Further Resolved, That the City Comptroller and other appropriate City officials are directed to take all actions necessary to fulfill the intent of this resolution.
Requestor
City Attorney
Drafter
Amy E. Hefter
5/3/2017
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