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Littleton council approves $975,000 amendment to 2024 budget to cover employee insurance and liability costs
Summary
The council unanimously approved Ordinance 32‑2024 on second reading, increasing 2024 appropriations by $975,000 to cover excess health insurance claims and higher property and liability premiums; funding will come from the respective fund balances and does not affect the general fund.
The Littleton City Council unanimously approved Ordinance 32‑2024 on second reading Tuesday, amending the 2024 budget to cover higher than expected employee health claims and increased property and liability premiums.
Finance Director Tiffany Hooten told the council the ordinance increases appropriations for two internal funds by a combined $975,000: $850,000 for the self‑funded health insurance plan (driven largely by prescription costs and higher usage at the city clinic) and $125,000 for property and liability premiums. Hooten said both increases will be paid from the respective fund balances and will not draw on the general fund.
"This is an increase related to health insurance claims," Hooten said. "The city is self‑funded, and prescription costs came in higher than anticipated. The excess expenditures will come from fund balance, which will reduce the health fund balance to about $380,000 at the end of 2024." She added that the property and liability fund will remain healthy with an estimated year‑end balance of roughly $900,000.
The council asked clarifying questions about the impacts of the adjustments. Council member Grove confirmed the change does not affect the general fund. Hooten said staff will monitor claims in 2025 and consider procurement options or plan design changes to rein in costs. She also said the city will explore options to reduce employee premiums or offer plan choices in future years.
Motion and outcome: A motion to adopt Ordinance 32‑2024 on second reading carried unanimously, 7‑0. The ordinance amends Ordinance 24‑2023 to appropriate the additional funds for municipal purposes in the fiscal year ending Dec. 31, 2024.
Votes at a glance: the council also approved consent agenda items (Resolution 01‑2025, designating where meeting notices are posted and the official newspaper, and the minutes of Dec. 17, 2024). The consent agenda and minutes were approved unanimously 7‑0 earlier in the meeting.
What happens next: Staff will monitor both the health insurance and property/liability funds in 2025 and may pursue procurement or plan‑design changes to limit future exposure. Any changes to employee plans will follow normal procurement and labor processes.
