REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 23, 2024
FROM
VICTOR TORDESILLAS, Deputy Executive Officer, Risk Management Department
SUBJECT
Title
Budget Adjustments to Increase Appropriation for the Special Districts Workers’ Compensation Self-Insurance Fund
End
RECOMMENDATION(S)
Recommendation
1. Approve a budget adjustment in the amount of $1,500,000 to fund the costs associated with Special Districts Workers’ Compensation expenses, such as temporary and permanent disability payments, legal expenses, and other services.
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post budget adjustments to the Risk Management Department 2023-24 budget, as indicated in the Financial Impact section (Four votes required).
(Presenter: Victor Tordesillas, Deputy Executive Officer, 387-5429)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The increase in appropriation as detailed below will be funded by the Risk Management Department’s (Risk Management) Special Districts Workers’ Compensation Self-Insurance Fund (4104) using Available Unrestricted Net Position. This fund is sustained by Board of Supervisors (Board) approved rates charged to Board-Governed Special Districts. This item authorizes the Auditor-Controller/Treasurer/Tax Collector to post the following 2023-24 budget adjustments necessary to fund these costs:
|
Cost Center |
Commitment Item |
Description |
Action |
Amount |
|
7310004104 |
52002605 |
Temporary Disability/Loss Earnings |
Increase |
$250,000 |
|
7310004104 |
52002610 |
Permanent Disability/Pain & Suffering |
Increase |
$450,000 |
|
7310004104 |
52002645 |
Medical Treatment/Medical Expense |
Increase |
$650,000 |
|
7310004104 |
52002550 |
Appellant Legal/Plaintiff Legal Fees |
Increase |
$150,000 |
|
7310004104 |
40909995 |
Residual Equity Transfers In |
Increase |
$1,500,000 |
BACKGROUND INFORMATION
Risk Management administers the County’s self-insured workers’ compensation, public liability, property conservation, safety and risk reduction programs, and its insured programs. All programs are paid from self-insurance funds and are funded by County departments and Board-Governed Special Districts. Each is billed for specific coverage for the cost to pay losses and excess insurance premiums under the self-insured programs.
The 2023-24 expenses related to permanent disability, temporary disability, medical treatment, legal services, and other services in the Special Districts Workers’ Compensation Self-Insurance Fund have been higher than anticipated. Approval of the recommended actions will allow Risk Management to continue to issue time sensitive payments related to these categories. All expenses related to this fund are recovered through a Board approved premium and employer paid payroll deductions.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on April 12, 2024; Auditor-Controller/Treasurer/Tax Collector (Vanessa Doyle, Deputy Chief Controller, 382-3195) on April 12, 2024; Finance (Ivan Ramirez, 387-4020, Administrative Analyst) on April 12, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on April 12, 2024.