[1]
Editor's Note: This ordinance also provided for an effective
date of 4-15-2010.
The Insurance Reserve Fund was established to account for and
finance the Town’s obligations from uninsured losses, deductibles,
and rating plan adjustments from its property and casualty insurance
programs.
Each fiscal year the Town shall appropriate the level of funds
required to meet its obligations based on an actuarial-based recommendation
using a seventy-five-percent confidence level and additional consideration
by the Town Manager of exposures not subject to the actuarial-based
review. The actuarial-based review shall include open loss-sensitive
rating plans from prior years and projections for the current and
upcoming policy year that are or will be subject to loss-sensitive
rating plans.
During the fiscal year, there shall be paid into the Insurance
Reserve Fund:
The Town Treasurer is authorized to draw upon the balance of
the Insurance Reserve Fund to pay for uninsured losses, deductibles
and/or rating plan adjustments relative to the Town’s property
and casualty insurance programs upon certification of the Director
of Finance as to the validity of the expenditure. No other expenditures
shall be made from the balance of the Insurance Reserve Fund, nor
shall any transfers be made from the fund. However, if, at the end
of the fiscal year, the balance of the Insurance Reserve Fund exceeds
the amount required by the Town to meet its obligation per above by
5% and there are no known or anticipated expenditures that would bring
the Insurance Reserve Fund below the required amount, the excess over
that 5% shall be credited to the Town’s General Fund.
