TO: Board of Supervisors
FROM: Christine Briceño, Director of Human Resources
REPORT BY: Joy Cadiz, Senior Human Resources Analyst
SUBJECT: Approval of Budget Adjustment Increasing Appropriations in Dental Insurance
RECOMMENDATION
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Director of Human Resources requests approval of a Fiscal Year 2021-22 Budget Adjustment increasing appropriations in Employee Insurance - Dental (4400-4400002) totaling $110,000 from available fund balance for payment of additional claims (4/5 vote required).
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EXECUTIVE SUMMARY
A budget adjustment is required to cover employee-related dental insurance June 2022 claims totaling approximately $186,865 as well as administrative expenses from the County’s dental third-party administrator totaling approximately $18,000. There is currently $95,140 available.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
There was an increase in employee dental claims, which resulted in insufficient funding for FY 21-22. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
This is a one-time expense. |
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Consequences if not approved: |
Employee dental claims and administrative costs will not be paid. |
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County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The County is self-insured for employee dental insurance and contracts with a third-party administrator to process claims. Actual activity FY 2021-22 exceeded the appropriation and use of fund balance is needed to pay final invoices. June 2022 claims totaled $186,865 and third-party administrator expenses were approximately $18,000. The available budget is currently $95,140, which is $110,000 less than what is needed to closeout FY 2021-22.
Therefore, the Director of Human Resources is requesting a budget adjustment of $110,000 to increase appropriations in the Employee Insurance - Dental fund to close out the remaining claims and administrative costs for Fiscal Year 2021-22