Internal Service Funds
Fiscal Year 2022/23
Overview
Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments within City, or to other governments on a cost reimbursement basis. The Self Insurance Fund accounts for property and public liability, workers’ compensation, and the safety program. The Health Insurance Fund accounts for medical, dental, and other insurance programs provided to employees and retirees of the City.
Internal Service Funds By Fund FY2022/23
The funds below comprise Internal Service Funds -
Self Insurance Fund
The Self Insurance Fund is used to finance the City of Tucson's risk management program. Revenues for this fund is primarily derived from charges to other City departments. The related fund activity includes unemployment claims, workers’ compensation claims, public liability claims, employee safety, hazardous waste management (spill program), and specified environmental remediation. The charges to other City departments are dependent on the department claim cost and the expenses (e.g. insurance, legal, medical, and administrative costs) related to the risk management program.
In Fiscal Year 2022/23, the City continues to include tort claim reimbursements in the primary tax levy as allowed by state law. The property tax revenue represents a reimbursement to the City’s Self Insurance Fund for the actual cost of liability claim judgments paid during Fiscal Year 2020/21. The amount levied for the tort liability reimbursement will be $4,123,450, a $0.0990 property tax impact per $100 assessed value to the primary tax levy.
Self Insurance Fund By Category FY2020/21 - FY2022/23
Health Insurance Fund
The Health Insurance Fund was established in Fiscal Year 2019/20 with the purpose to managing life and medical insurance costs by providing health related benefits to participants; City employees, City retirees, and qualified family members through various benefit plan networks administered by a combination of third-party administrators and contractors. A major source of revenues for these programs come from various plan networks offered to participants, pharmacy rebates, and interest earnings. These programs are funded primarily by charges to City departments for each participating member and contributions from the members themselves. In general, the monies are held in a trust for the benefit of the plan benefits.