HomeMy WebLinkAbout5.F.9. 2008 Workers Compensation Insurance ~I ~ I
CITY OF SHAKOPEE
Memorandum ~ t~
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: 2008 Workers Compensation Insurance
DATE: December 13, 2007
Introduction
The Workers Compensation policy for the City and Utilities
Commission is up for renewal.
Background p olic for the
This is a routine item thatTheerenewalois Pith the same
city renews on January 1.
terms as last year, namely with a $500 deductible on medical
coverage.
The deposit premium last year was $283,632 and this year it
is $305,138. The rates have increased for 2008, plus
inflationary increase plus the growing work force.
Actual cost is based on the actual wages calculated after
the end of the year. After splitting the cost with SPUC,
the city share for 2008 will be about $241,973 of the
$305,138 deposit•thecworkepsecompensationlauditr 2007 is
determined after
For the city's share of the cost, there is $186,050 across
all funds in the 2008 budget. The budget shortage is due to
changing the way the premium is allocated through out the
year (2007) and looking at year to date numbers during
budget preparation versus annualized cost for the year. A
budget amendment will be needed in 2008 to address the
difference.
The League of Cities Insurance Trust has an excellent
program and has almost no competition for this market.
Action
Move to approve the renewal of the workers compensation with
the League of Cities Insurance Trust for a deposit premium
of $305,138.
Greg}`g Voxl and
Finance Director'
h:\finance\docs \insure\workcomp