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Ordinance Making a Supplemental Appropriation of $1,591,427 in Surplus Revenue to the General Fund
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Department:
Budget & Research
Meeting Date:
6/3/2025
Contact Name:
Laura Mortell
Public Hearing:
No
Contact Phone:
910-341-5885
Advertising Date/Advertised By:
N/A
Attachments:
Attachment #1: FY25 Supp App Ordinance
PURPOSE:
The purpose of this ordinance it to appropriate $1,591,427 of projected revenue surplus to the General Fund to cover unanticipated expenses in three areas that may need adjustments before the end of the fiscal year: healthcare claims, workers' compensation settlements, and contributions to the State Retirement System for members exceeding the contribution-based cap.
BACKGROUND:
In recent years, healthcare claims have generally stayed within budget; however, this year the City faces the risk of surpassing the current budget due to unexpected costs. The City's internal trend is up 20% in FY25 as compared to the FY24 Plan Year, driven by high-cost claimants and increased pharmacy spending with one claim totaling over $700,000.
In FY25 there has been an increase in the number of workers' compensation claims and the severity of injuries reported. This rise in both the frequency and seriousness of cases has led to expenditures that exceed normal levels, potentially straining the current budget and necessitating the allocation of additional funds. Two settlements that require funding in FY25 total $258,000.
For both healthcare expenses and the workers' compensation claim, the City is self-insured and responsible for payments up to a certain threshold.
Lastly, in 2014, the General Assembly established the Contribution-Based Benefit Cap ("CBBC"), mandating that participating employers, including the City of Wilmington, increase their contributions to cover significant unforeseen liabilities arising from substantial salary increases throughout a member's career. If it is found that a member's benefits exceed the CBBC, thei...
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