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Committee approves removing $100,000 year-end cap on Liability and Casualty Reserve Fund
Summary
The Rules Committee approved amending Local Law No. 8 of 2010 to eliminate a $100,000 year-end cap on the Liability and Casualty Reserve Fund, saying the limit forced procedural withdrawals and undermined the county's ability to hold sufficient reserves for claims and judgments.
The Rules Committee voted to remove the $100,000 statutory year-end cap on Orange County's Liability and Casualty Reserve Fund, approving an amendment to Local Law No. 8 of 2010. Ms. Kathy Stegenga moved the change, which passed without recorded opposition.
Richard Golden, County Attorney and Acting Risk Management Officer, described why the cap is impractical: historically staff reduced the fund at year'end to meet the $100,000 limit and then restored it, a process that offers no protection for paying claims. "There seems to be no valid reason to have this," Golden said, noting the county should be able to hold multiple millions in reserve to cover liabilities, expenses, losses and judgments. County Finance staff concurred that removing the artificial limit better reflects the fund's intended purpose.
