§ 1-214. Creation and maintenance of the self-insurance fund.

(a)

There is hereby created a self-insurance fund which shall be created and perpetuated under the following circumstances:

(1)

Each division of Broward County government shall be billed or assessed a budgeted annual amount as a service charge to be paid into the fund, which charge shall be against the general government and the various enterprise funds of Broward County, Florida.

(2)

Until the self-insurance fund is fully funded (assets equal to liabilities), all unused budgeted dollars, interest accrued and refunds on commercial interest will be retained by the fund.

(3)

At the time amounts are paid into the fund, they shall be segregated from the general operating resources in the course of the regular and normal budgeting processes of Broward County.

(4)

Revenues received by the self-insurance fund will be used to pay the necessary expenses of the county's self-insurance program.

(5)

Service charges shall be adjusted annually for each type of coverage which is self-insured pursuant to any actuarial review. The actuarial review shall be conducted not less than once every two (2) years. Rates shall not be reduced for any self-insured coverage until retained earnings exceed one million dollars ($1,000,000.00) as certified in the annual financial report by an independent certified public accountant.

(6)

The administrator shall establish a plan to fund the unfunded liability as reported by the actuary in the next budget year. The funding of the unfunded liability shall be prorated over a period not to exceed ten (10) years based on the undiscounted amount as reported by the actuary. The funding of the unfunded liability shall be established as a separate rate in addition to the regular rate necessary to fund the self-insured programs.

(b)

The county administrator or his designee is directed to formulate a system of assessing the operating costs of the self-insurance fund against the several organizational units participating in the self-insurance program. Such assessments shall be sufficient to defray the operating and reserve requirements of the fund.

(Ord. No. 77-71, § 2, 11-16-77; Ord. No. 81-88, §§ 1, 2, 9-17-81; Ord. No. 86-53, § 1, 10-14-86)