The city shall maintain a special municipal fund, designated health benefit self-insurance fund, into which shall be placed any current or future funds generated by the continuation of the medical, vision and dental plans. Such fund is hereby declared to be perpetual, and moneys remaining therein at the conclusion of each budget year shall carry over into the ensuing year, provided, however, upon determination that the balance of this special fund exceeds the amount necessary to maintain a prudent funding level for current expenditures, reserves and future premium stabilization, and as part of the budgetary process, the city may make withdrawals from this fund for any city purpose.

Such moneys as are available within such fund shall be drawn upon to pay benefit costs as may be necessary by the terms of the applicable contracts, exempt employee policies, and state laws and to pay other costs incurred by the city in conjunction with the administration of the employee health benefit programs, provided, however, in the event an expense should arise for which insufficient sums are available within the health benefit self-insurance fund, such amounts shall be prorated over the departments and operations of the city as are appropriate to reflect an equitable distribution of the obligation. [Ord. 10794 § 1, 1996; Ord. 8942 § 1, 1981].