Discussion and possible action to approve a budget amendment in the amount of $1,464,722 from Contingency to the Risk Management Fund. This action is necessary to fund property, auto, and injury claim costs, incurred in Fiscal Year 2024, along with additional insurance premium expenditures, in excess of the Fiscal Year 2024 adopted budget.

The City of Peoria is exposed to various (unpredictable) claims and costs, related to our property, autos, and casualty (liability) claims and insurance costs.  These claims and costs include civil torts, as well as insurance policy costs.  City insurance premiums and claim costs vary year to year. Based on year-to-date claims and insurance activity, within FY 24, staff estimates the actual claims expenditures in the Risk Management Fund (Division 3600 - Claims & Insurance) will exceed the FY 24 budget by approximately $1,464,722. 

Staff recommends approval of a budget amendment in the amount of $1,464,722 from Contingency to fund these expenditures within the Risk Management Fund.

FY 24 expenditures for claims and insurance costs exceeded the FY 24 adopted budget and the Risk Management Fund has sufficient fund (reserves) to cover the requested budget amendment.  Although the allotted budget authority is usually sufficient to cover annual fiscal claims and costs, it is not uncommon to have a potential budget shortfall, as in this FY, due to the unpredictability of these costs. The Budget Department and City Attorney’s Office will continue to monitor this line item and discuss spending authority increases as needed.