2022 City of Shakopee Budget

184

2022 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).

Key Measures:

Actual

Actual

Budget

Budget

2019

2020

2021

2022

Workers Compensation: Deductible

25,000 38,682

25,000 29,536

25,000 10,000

25,000 25,000

Amount Paid

Experience Modification (less than 1.0 is good)

.90

.83

.66

.65

General Liability: Deductible

50,000 29,801

50,000 76,866

50,000 10,000

50,000 50,000

Amount Paid

Liability Rating (less than 1.0 is good)

.829

.831

.838

.840