HomeMy WebLinkAbout5.F.13. 2007 Workers Compensation Insurance
o.F./3.
CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: 2007 Workers Compensation Insurance
DATE: December 15, 2006
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 $193,433 and this year it
is $283,632. The rates increased for most classifications
but by far the biggest factor in the increase is recent'
claims. Factored in are claims for $137,000, $104,000,
$49,000 and $15,000.
Actual cost is based on the actual wages calculated after
the end of the year. For the city's share of the cost,
there is $180,050 across all funds in the 2007 budget.
After splitting the cost with SPUC, the city share for 2007
will be about $240,859 of the $283,632 deposit. Actual
premium cost split for 2007 is determined after the workers
compensation audit.
The League of Cities Insurance Trust has an excellent
program.
Action
Move to approve the renewal of the workers compensation with
the League of Cities Insurance Trust for a deposit premium
of $283,632.
AJ
Gregg Voxland
Finance Director
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