(1) On August 14, 1978, in Ordinance No. 18247, a risk management fund was created. It is the objective of the city to place, maintain, and carry-over from year to year in that fund, an amount sufficient to meet the city’s future liabilities, including but not limited to, developed claim costs, incurred but not reported losses, larger than anticipated judgments, employee benefit programs, and other contingencies. From time to time, appropriations to the fund may be made in accordance with the Local Budget Law; in addition, all insurance premium refunds, rebates and dividends shall be placed in the fund.
(2) The city manager or designee shall invest such portion of the risk management fund as is deemed prudent in such manner as will enable the city to meet its obligations in a timely manner. All earnings of the fund shall become a part of the fund. It is recognized that as the fund reaches sufficient size it could become sustaining so that earnings will reduce the amount, if any, of other city revenues that must be placed in the fund.
(3) The city manager or designee is to endeavor to maintain in the risk management fund a reserve amount for estimated losses, the estimated costs of all insurance premiums, and an amount to defray administrative costs.
(4) Disbursements or transfers from the risk management fund may be made only by:
(a) The city manager or designee in payment of insurance premiums and administrative expenses of the city’s risk management program;
(b) The claims adjuster or adjusters contracted with or employed by the city to administer its risk management program in settlement of claims up to an amount as provided by contract;
(c) The city manager or designee, in settlement of claims.
(5) The city manager or designee shall maintain a complete and accurate file of all claims and payments made and activities of the risk management fund.