HomeMy WebLinkAbout5.C.2. Allocation of Worker's Compensation Commission �.C.�.
City of Shakopee
MEMORANDUM R ,. �,� .�� �' �
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator ���,.U�
SUBJECT: Allocation of Worker's Compensation Commission
DATE: March 29, 2012
Introduction
The City Council is asked to authorize the allocation of the annual Worker's Compensation Commission
check to the City's Employee Wellness Committee.
Background
Earlier this year it came to staffs' attention that the City has been receiving an annual commission check
from the League of MN Cities Insurance Trust (LMCIT) for our Worker's Compensation Insurance. Other
lines of insurance purchased from LMCIT, such as property and liability insurance, are managed through
a local insurance agency and that agency receives a commission check from the League. However, the
City manages its Workers Compensation insurance entirely in house. Therefore, the commission check
that would normally go to an insurance agent or agency for administrative overhead is sent to the City
instead.
The commission check for calendar year 2011 recently arrived and totals $5,173. Looking back over the
past five years, previous commission checks have ranged from a low of $4,683 in 2010 to a high of
$6,681 in 2009. This is unbudgeted revenue into the General Fund, for which no specific purpose has
been identified. Therefore, staff would like to recommend that the City Council authorize the allocation
of these funds, on an annual basis, to the Employee Wellness Committee.
The Wellness Committee, which is approximately two years old, is composed of interested employees
from the City's various departments. The committee received a statewide workplace wellness grant of
$5,000 in its first year, and that has been its only source of funding to date. The allocation of this
commission check to the Wellness Committee would provide a modest, but ongoing, source of funding.
The Wellness Committee's activities to date have included various efforts to encourage healthy eating
and regular exercise, the hosting of an annual Health Fair and flu shot clinic, and the organization of an
employee garden on land outside the police station. However, efforts have been limited by a lack of
funds to broaden the committee's efforts.
The Finance Director has confirmed with the City's audit firm that this would be an acceptable use of
these funds, if so directed by the Council.
Recommendation
Staff recommends that the annual Workers Compensation Insurance commission check received by the
City be allocated to the Employee Wellness Committee to support wellness-related programs and
activities, beginning with the 2011 commission check.
Budget Impact
As this is unbudgeted revenue, allocating it to the Wellness Committee will have virtually no impact on
the City's adopted 2012 operating budget but would have a very favorable impact on the virtually non-
existent budget of the Wellness Committee.
Requested Action
If the Council concurs, it is asked to offer a motion, to allocate the annual Worker's Compensation
commission check to the Employee Wellness Committee, beginning with commission covering the 2011
calendar year.