Discussion and possible action to approve a budget amendment in the amount of $152,150 from Contingency to the Risk Management Fund to pay insurance premiums and claim expenditures in excess of the Fiscal Year 2023 adopted budget.

The City of Peoria is exposed to various property and casualty claims and insurance costs.  These claims include auto and property damages, liability claims, and civil torts, as well as insurance policy costs.  City insurance premiums and claims vary from year to year depending on unforeseen incidents, accidents, and claims. Based on year-to-date claims activity, staff estimates the actual claims expenditures in the Risk Management Fund will exceed the fiscal year 2023 budget by approximately $152,150. 

Staff recommends approval of a budget amendment in the amount of $152,150 from Contingency to the Risk Management Fund. 

Fiscal year 2023 expenditures for claims and insurance costs exceeded the fiscal year 2023 adopted budget and the Risk Management Fund has sufficient fund balance reserves to cover the requested budget amendment.  Although the allotted budget authority is usually sufficient to cover annual fiscal claims, it is not uncommon to have a spike in claims that causes a budget shortfall.  The Budget and City Attorney’s Offices will continue to monitor this line item and discuss spending authority increases, if needed.