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Commissioners advise adding contingency and clarifying tort/deductible exposure as ambulance district separates finances
Summary
Commissioners recommended the district create a contingency fund, review tort levy/tort fund mechanics and ensure the budget captures potential deductibles and insurance exposures now that the district's finances are segregated from the county's.
With the ambulance district operating on segregated finances, commissioners recommended adding a contingency fund and reviewing tort/deductible exposures so the district is not caught unprepared for claims or unexpected events.
Commissioners noted the district currently has no contingency in its working budget and said the county will not be able to provide ad hoc support after segregation. “You guys this will be your first time kind of on your own, there's no contingency currently in your budget,” a commissioner said, and recommended the district add a contingency line that could roll forward if unused.
Why it matters: the contingency fund can cover emergencies, claims deductibles, or other unanticipated costs without immediate levy or TAN moves. Commissioners also discussed tort levy mechanics: the tort levy is a separate levy and can be used for premiums, deductibles and litigation; there is no statutory levy cap under the tort category, but it still counts against the district’s overall budget limitations.
Staff said they would review their tort and deductible exposure history with their insurance contact, and the board directed staff to tag any insurance deductible expenses clearly and to consider a tort reserve or contingency account in the upcoming budget.
