A.
Two self-insurance funds are hereby created:
(1)
Employee benefits fund for employee benefit programs,
including long-term disability programs; and
(2)
Property and casualty fund for property, liability,
bond, automobile, unemployment compensation, workers' compensation,
and other commercial or self-insurance insurance programs that may
be lawfully implemented in a manner consistent with state statutes
and regulations. These shall be expendable trust funds pursuant to
RSA 31:19-a, and the Risk Manager is appointed as agent to expend.
B.
The self-insurance funds shall be funded by any combination
of the following:
(1)
The Board of Aldermen shall appropriate the Insurance
- Employee Benefits budget (Insurance - Policy Costs), except unemployment
compensation, directly into the Employee Benefits Expendable Trust
Fund.
(2)
Further, the receipt of monies as a result of judgments,
subrogations, and any other returns that occur as a result of claims
or other demands previously made on, or related to, the fund shall
return to the fund without further specific appropriations.
C.
The employee benefits fund shall be managed by the
Administrative Services Director and the property and casualty fund
shall be managed by the risk management office. The financial affairs
division shall provide audit and financial services to both funds.
Administration of the funds shall be based upon actuarial determinations
of the amounts needed for self-insurance purposes to include a financial
reserve for outstanding claims, contingencies, unforeseen expenses
and random claim fluctuation and shall also include a sufficient appropriation
to provide payments for self-funded or commercially contracted programs,
as the insurance needs of the City may be met from time to time. Retained
earnings, under generally accepted accounting principles, will be
reviewed annually by the Administrative Services Director, Human Resource
Manager, Risk Manager and Chief Financial Officer. The Risk Manager
shall be authorized to settle claims for liability against the City,
its officers, employees or agents, either before litigation or while
litigation is pending, by payment of sums not exceeding $25,000 per
occurrence. The authorization of the Finance Committee shall be required
for settlement of any such claim by payment of a sum in excess of
$25,000 per occurrence.
[Amended 12-14-2021 by Ord. No. O-21-077]
