Banning Municipal Code Ch. 3.28 Insurance Fund

An insurance fund is created for the purpose of defraying all insurance expense, including premiums, administrative costs, and to satisfy claims determined payable under the self-insurance program of the city.

(Code 1965, § 11A-1.)

As part of the annual budget process, a determination will be made of the funds required to offset the total costs of the insurance fund operations for the budget year. As a minimum, an amount equal to those total costs will be expensed in the general fund and transferred into the insurance fund. During the first five years of insurance fund operation, fiscal years 1977 through 1982, funds in excess of projected operating costs will be budgeted for transfer until an unencumbered reserve of two hundred fifty thousand dollars is established.

(Code 1965, § 11A-2.)

The costs of the total insurance program will be processed through the insurance fund.

(Code 1965, § 11A-3.)

Unencumbered reserves will not be transferred back into the general fund, but must be maintained as long as the city operates under a self-insured retention program. The level of reserves shall be reviewed annually by the city council.

(Code 1965, § 11A-4.)