‘Several large’ health insurance claims lead to ‘worrying’ shortfall in City of Cedar Falls fund [Waterloo-Cedar Falls Courier, Iowa]

Sept. 4—CEDAR FALLS—Several large health insurance claims have led the city administration to recommend that approximately half of the general fund year-end surplus be used to cover the resulting loss in its insurance fund.

City Council will consider approving a resolution on Tuesday evening during its 7 p.m. meeting inside the community center, 528 Main Street.transferring $900,000 of its surroundings $2.2 million surplus to help offset a $1.3 million loss and “keep strong reserves” in the city’s self-insured health insurance fund.

“A major concern continues to be the fund balance of the city’s self-insured health insurance fund,” the director of financial and business operations said. Jennifer Rodenbeck in a note August 23 to the council about the fund created by the employer who assumes a financial risk to provide health care benefits to its employees.

City finance staff are closing the general ledger for the year ending June 30, 2022and hopes to “maintain a viable health insurance benefits program,” according to the resolution.

The $2.2 million the excess corresponded to $2.3 million of the surplus from the previous year.

“We were fortunate in fiscal year 2022 to have revenues that exceeded budgeted amounts. These included hotel/motel taxes, COVID relief grant, and receipt of replacement funds,” Rodenbeck said. “Additionally, we had areas where spending was less than budgeted amounts. Significant areas included recreation, engineering, parks and public safety.”

The $900,000 transferred to the health insurance fund leaves approximately $1.3 million in excess, $328,333 of a grant from the Iowa Fitness Center Relief Program from Federal COVID Relief Funds.

The resolution would authorize those funds to be transferred to the recreation fund to help pay for projects at the aquatic center or others involving recreation, according to Rodenbeck’s memo.

Another one $595,874 is the city’s annual landfill payment.

These payments offset revenue lost by cities, counties and schools when the state cut commercial and industrial property taxes in 2013.

This money is being phased out and the council had previously requested that it be set aside for one-time capital projects.

Similarly, Rodenbeck’s note indicated that the remainder approximately $300,000 of the excess will be transferred to the Capital Projects Fund to “help offset any project that experiences cost increases due to inflation, or to be used for a project identified as using General Fund Savings (GFS ) on the CIP”.

“This remaining amount will be used for a project that will be specifically designated by the municipal Council throughout the process of setting goals and improving capital assets,” the resolution reads.

This process begins at the end of the year.

Moreover, at his 7:00 p.m. Tuesday meeting, the board will consider several other resolutions:

* Accept surface transport Block grant until $2.9 million for the reconstruction of Main Street.

* Execution $1,000 lease agreements, for a maximum of three years each, for the use of eight-foot by four-foot murals, which will be installed on the underpass of the bridge at the intersection of Main and East First streets.

* Allow the demolition of the existing dwelling at 1224 West 20th St.and the construction of a new duplex in its place.

* Accept a $49,143 bid for Iowa Flatworks Inc. for the city’s annual sidewalk assessment program.

The meeting starts at 5:15 p.m. at the community center.

The Community Development Committee will learn about applying for a Destination Iowa grant to help fund projects in and around the Cedar River in cedar falls and Waterloo.

The Public Safety Committee will hear the fire chief John Bostwick on the answer August 18 to a structural fire on Orchard Hill Walk.

___

(c) 2022 Waterloo-Cedar Falls Courier (Waterloo, Iowa)

Visit Waterloo-Cedar Falls Courier (Waterloo, Iowa) at www.wcfcourier.com

Distributed by Tribune Content Agency, LLC.