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ORDINANCE NO. <br />AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, <br />INDIANA, CREATING AN UNEMPLOYMENT COMPENSATION INSURANCE <br />FUND ( #713) <br />STATEMENT OF PURPOSE AND INTENT <br />The employees of the City of South Bend are covered under federal and state <br />unemployment insurance laws. As with most local units of government, the City of South Bend <br />is a "reimbursing employer" and repays the Indiana Department of Workforce Development <br />monthly for actual unemployment claims paid to eligible former employees. These costs are <br />currently paid from departmental operating budgets and the amount of unemployment claims <br />paid in a year can be difficult to estimate and budget accurately. Thus, it is in the best interest of <br />the City to establish a new Unemployment Compensation Insurance Fund ( #7I3), which will <br />account for the payment of unemployment claims in a single fund and will charge an allocation <br />to user departments to cover the estimated costs of claims. The Unemployment Compensation <br />Insurance Fund will be classified in the annual financial report as an internal service fund <br />because it benefits other City departments. The new Fund 713 will be a non - reverting fund and <br />will earn interest on cash balances. The Fund will be subject to appropriation by the City of <br />South Bend Common Council. The 2011 budget for Fund 713 was passed by the Common <br />Council on October 25, 2010. <br />NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE <br />CITY OF SOUTH BEND, INDIANA as follows: <br />SECTION I . An Unemployment Compensation Insurance Fund ( #7I3) is created to <br />account for the payment of unemployment claims in a single Fund and to charge an allocation to <br />user departments to cover the estimated costs of claims. This Fund shall be non - reverting and <br />shall earn interest on cash balances. The Fund will be subject to appropriation by the City of <br />South Bend Common Council. <br />SECTION 11. The Unemployment Compensation Insurance Fund ( #713) will be <br />established effective January 1, 2011. <br />SECTION III. This ordinance shall be in full force and effect from and after its passage <br />by the Common Council and approval by the Mayor. <br />Member, South Bend Common (to: uncil <br />� F <br />4 <br />