Title
Consider/Discuss/Act on an Ordinance Establishing a Self-Funded Self-Insurance Program in accordance with Texas Government Code Chapter 2259 and Establishing a Self-Funded Retainage
Summary
COUNCIL GOAL: 2.1 Balance available resources to accommodate the growth and maintenance needs of the city.
4.4 Create financial plans for future growth as well as future maintenance.
MEETING DATE: September 1, 2026
DEPARTMENT: Human Resources
CONTACT: Jim Parrish, Human Resources Director
Mark Barta, Human Resources Risk Manager
RECOMMENDED ACTION:
Approve an Ordinance Establishing a Self-Funded Self-Insurance Program in accordance with Texas Government Code Chapter 2259 and Establishing a Self-Funded Retainage.
ITEM SUMMARY:
This Ordinance establishes a Self-Funded Self-Insurance Program in accordance with Texas Government Code Chapter 2259 and establishes a self-funded retainage in an amount of Two Million Eight Hundred Fifty Thousand Dollars ($ 2,850,000) for the 2026-2027 Fiscal Year to encumber the funds for the City’s basic or primary layer of self-insurance coverage (the “Retainage”) necessary to operate a Self-Funded Self-Insurance Program.
The City must pay the Retainage out of its then current funds for any losses or damages the City incurs or suffers before the City can assert a claim for excess or surplus insurance coverage extending above and beyond the amount of Retainage and before the excess or surplus insurance carrier is obligated to act.
This Ordinance also authorizes the City to utilize current funds to identify and acquire layers of excess insurance coverage that will reduce the City’s exposure to and protect the City from any catastrophic financial impacts arising out of some insurable event that can be protected with the various excess insurance carriers that have agreed to provide excess insurance coverage policies in amounts that exceed the City’s self-insurance retainage.
BACKGROUND INFORMATION:
The Human Resources, Legal...
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