Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Risk Management Reorg topic
No spam. Unsubscribe anytime.
City moves risk management out of HR into dedicated internal fund; departments to carry per‑employee allocation
Summary
Administration said it created a distinct risk management function and internal fund in FY26 so the city can allocate risk costs on a per‑employee basis. Mandy Green and other staff described the change as a move to ‘‘best practice.’’ Council members were shown a recurring line item labelled "risk management allocated cost."
The administration told council it has reorganized risk management — moving the function out of Human Resources and into its own internal fund and department — and will start allocating a per‑employee risk charge across departmental budgets.
"When I came into the city in, 2021, we didn't have a designated risk department or, function. And so we created that department," Mandy Green, chief operating officer, said. She said the new structure makes risk management and technology replacement funding more visible and easier to manage.
Under the proposed FY26 budget, every departmental cost center includes a line item for "risk management allocated cost." For example, the city council cost center shows a risk allocation of about $15,000, staff said. The administration characterized the new approach as an internal service fund model that spreads costs for liability claims, workers' compensation and similar exposures across departments on a per‑head basis.
Staff also described a separate liability fund for potential claims and a technology replacement allocation included as a central cost. In response to council questions, staff pointed to the budget document pages where the allocation appears (page B‑54 and related cost‑center reports) and said they would provide further line‑by‑line clarification on request.
Council members asked for precise figures, and staff pledged to provide updated tables and an explanation of the methodology used to compute per‑employee charges.
