Internal Service Funds Overview

There are five Internal Service Funds – Insurance Fund (Risk Management), Computer Fund, Print Services Fund, Vehicles Fund and Building Fund. Internal Service Funds charge internal programs and departments for use of goods and services. The Funds then pay for all associated costs of things such as purchasing insurance, vehicle purchases and maintenance, computer purchases and maintenance, and buildings maintenance.

Insurance Fund

Overview

The Insurance Fund, administered by the Risk Management Program of the City Attorney’s Office, accounts for the City’s self-insurance against loss. It is funded with contributions by all City departments and programs based on their levels and types of exposure. The Fund is also used for loss prevention programs, the protection of City personnel and the preservation of City property and assets.

*Per GASB Statement 10, an additional $3,210,034 in cash is currently held in the Risk Management fund to cover potentially incurred liabilities as of the beginning of the year. This figure was reached by the Risk Management’s actuary for 2022.

Revenue Highlights

• Revenues increased $480,080 or 36.10% over 2022.

• The increase is primarily due to the increase in contributions from other funds..

Expenditure Highlights

• Overall expenditures increased $453,146 or 23.37% over 2022.

• Workers compensation claims decreased $58,144 over 2022 due to delays in payments.

• However, liability claims increased $152,484 or 30.69% due to increased insurance premiums and the payments for sewer main break in March.

• Property claims increased $260,384.57 or 37.97% due to increased insurance premiums, remediation for the two big wind events in Q1 and Arvada Center burst pipe.

• Auto claims increased as well by $88,508 over 2022 due to increased insurance premiums and increased repair cost in general.

Computer Fund

Overview

The Computer Fund provides resources for both ongoing maintenance and replacement of the City’s computers, network hardware, and other electronic infrastructure. It is funded with contributions by all City departments based on their levels of use of this technology.

Revenue Highlights

• Other Revenues increased due to a larger accounting adjustment entry for daily interest in 2023 than the same entry made in 2022. The interest rate earned is much higher this year compared to last year’s rate.

Expenditure Highlights

• Maintenance expenditures decreased as a result of a radio system maintenance invoice payment in in the first half of 2022 that did not have a corresponding transaction in 2023.

• Replacement expenditures increased due to a transfer from the Operating fund to the Capital fund for the Enterprise Resource Planning (ERP) project of $3,000,000. Minus this transfer, expenditures would be in line with 2022.