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CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16 OPERATING AND CIP
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY15-16
OPERATING AND CIP BUDGET
Workers’ Compensation [770-8220]
ACTIVITY DESCRIPTION
The Human Resources Group has primary responsibility for the City’s workers’ compensation program. The City is self-
insured for this employee benefit. Each department pays a portion of the program’s cost based on gross wages and
level of risk for the various job classifications within the department.
The City is responsible for the first $250,000 of each claim and has an excess insurance policy from that level up to
$5,000,000. The City belongs to an excess insurance joint powers authority called Local Agency Workers’ Compensa-
tion Excess Insurance (LAWCX) for the purpose of pooling for excess insurance. The City contracts with a third party
administrator (TPA) who handles day-to-day workers’ compensation claim administration.
FY 14-15 HIGHLIGHTS
Offered ergonomic evaluations to new employees and to employees who change workstations
Met quarterly with third-party administrator to review open claims
Completed actuarial evaluation to determine how best to allocate workers compensation claims costs among
departments
Extended contract with current workers compensation administrator for additional year
Successfully negotiated four workers compensation settlements and closed two open workers' compensation
claims
FY 15-16 ACTIVITY GOALS
Continue to conduct ergonomic evaluations to new employees and to employees who change workstations
Meet quarterly with third-party administrator to review open claims
Include medical-only claims in cost projections and tracking to better reflect workers compensation costs
FINANCIAL COMMENTS
The past fiscal year has seen a slight increase in the number of workers compensation claims and an increase in total
workers compensation expense. In addition, lost work days were higher than anticipated.