Item 4CITEM 4C Resolution No. 07-046 Establish the City of Southlake Insurance Trust, authorize the Trust Agreement, and appoint Trustees
Background
Texas Insurance Code requires annual premium tax on health, life
Municipalities may be exempted if insurance provided for “single non-profit trust . . .”
Premium taxes estimated at $30,500 for medical alone
Based on 2007 premiums
Other insurance products also taxed
Trust Agreement
Trust Agreement specifies:
Purpose of trust, including payments and receipt of funds;
Restrictions on investment authority;
Duties of the Trustees, including resignation and removal
Trust will function as holding fund for payment of insurance premiums.
Resolution No. 07-046
Resolution will:
Establish Insurance Trust;
Authorize the Trust Agreement;
Name Trustees:
Sharen Jackson, Finance Director
Kevin Hugman, Human Resources Director
Subsequent staff actions:
Notify insurance providers
register Trust with IRS
QUESTIONS? Contact Kevin Hugman