A. There is created a cumulative reserve fund for tort claims and insurance, including payment of settlements and judgments and costs and expenses relating thereto and payment of liability and casualty insurance premiums. (It is not intended that said fund shall be budgeted for or pay employee health insurance or death and disability insurance.

B. All funds now in or hereafter transferred to the cumulative reserve fund created under Ordinance No. 3506 shall be merged into the cumulative reserve fund for tort claims and insurance. Said funds shall be expended for the payment of claims and judgments against the city arising out of torts and costs and expenses related thereto and payment of liability and casualty insurance premiums upon the direction of the city council of the city, as provided through the budget process. (Ord. 3506 § 2; Ord. 2029-94 §§ 1, 2, 1994.)