HomeMy WebLinkAbout5.F.5. 2010 Workers Compensation Insurance
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CITY OF SHAKOPEE
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TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: 2010 Workers Compensation Insurance
DATE: December 21, 2009
Introduction
The Workers Compensation policy for the City and Utilities
Commission is up for renewal.
Background
This is a routine item that the work comp policy for the
city renews on January 1. The renewal is with the same
terms as last year, namely with a $500 deductible on medical
coverage.
The deposit premium last year was $334,597 and this year it
is $253,522. The rates have decreased on average 2% for
2010 but some classifications changed as much as 30% +/-.
The main reason for the premium decrease is the experience
modification factor decreasing from 1.02 to 0.82, based on
claims experience.
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 2010 will be about $202,549 of the
$253,522 deposit. Actual premium cost split for 2010 is
determined after the workers compensation audit.
For the city's share of the cost, there is $307,280 across
all funds in the 2010 budget including the Sewer and Surface
Water funds.
The League of Cities Insurance Trust has an excellent
program and has almost no competition for this market.
Additionally, the city has volunteer accident coverage that
was taken out in 2009 and the premium for renewing that
coverage is $1,813. This provides volunteers with some
modest medical and disability benefits.
Action
Move to approve the renewal of the workers compensation with
the League of Cities Insurance Trust for 2010 with a deposit
premium of $253,522 plus $1,813 for volunteer accident
coverage.