2020 City of Shakopee Budget

182

2020 Annual Budget

Self Insurance Internal Service Fund

Fund:

Establishment

The Self Insurance Fund was created in 2016 as a result of savings realized from increasing deductible premiums for the property/casualty policy. General liability moved to the self insurance fund at the 7/1/16 renewal. Workers Compensation moved to the self insurance fund at the 1/1/17 renewal. In addition, a 2016 transfer of $75,000 from the General Fund surplus created an inital balance suitable for covering annual deductible claims expenses. The goal of the fund is to establish an appropriate fund balance with the ultimate goal of moving towards a self insurance program, thus realizing the benefit of reduced premiums.

Description of Services:

This fund pays the costs related to the City's workers' compensation and property/casualty insurance policies through charges received from city departments and divisions. Coverage is maintained through the League of Minnesota Cities Insurance Trust (LMCIT).

Workers Compensation: Deductible

10,000 22,192

25,000 20,728

25,000 32,000

25,000 32,000

Amount Paid

Experience Modification (less than 1.0 is good)

.7

.81

.90

NA

General Liability: Deductible

50,000 19,650

50,000 12,789

50,000 15,000

50,000 18,000

Amount Paid

Liability Rating (less than 1.0 is good)

0.878

.874

.829

NA