HomeMy Public PortalAbout021-2008 - Establishes Workers Comp. Fund (707)ORDINANCE NO. 21-2008
A SPECIAL ORDINANCE CREATING A NEW FUND (707) FOR THE PAYMENT OF
WORKERS' COMPENSATION PREMIUMS AND CLAIMS
WHEREAS, the City of Richmond has previously had guaranteed cost policies for Workers
Compensation Insurance where fixed premiums were paid by the City and all
claims were paid by the Workers' Compensation carrier; and
WHEREAS, due to the increased cost of this type of policy, the City is now electing to have a
large deductible policy whereby the City will be responsible for the payment of
claims as they happen up to the deductible amount of said policy; and
WHEREAS, with this type of plan there is an aggregate limit in which the City would then
reach its maximum liability in any given policy year; and
WHEREAS, it is fiscally responsible to have a reserve sufficient to cover this aggregate
amount for any given policy year; and
WHEREAS, the City of Richmond desires to establish a non -reverting fund to provide the
reserve for this type of Workers' Compensation policy.
NOW, THEREFORE, be it ordained by the Common Council of the City of
Richmond, Indiana, as follows:
A new fund (707) to be known as the Workers' Compensation Fund is
hereby created.
2. Revenue sources for said fund shall come from the following;
(a) Transfers from each department based on its employees and
the types of jobs and risks of injury that they have. These
premiums would also be based on the amount of the reserve in
the fund.
(b) Interest Income
(c) Claim reimbursements
(d) Any other sources deemed appropriate
3. All claims and premium appropriations from this fund must be
approved by Common Council.
4. Expenditures from this fund shall include but not be limited to
annual premiums for the City's Workers' Compensation policy
premiums and actual claims as billed and approved by the City's
Workers' Compensation administrator.
Passed and adopted this _7th day of _April 2008 by the Common Council of the City
of Richmond, Indiana.
S/S Larry Parker President
(Larry Parker)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _8th day of _April
2008, at 9:00 a.m.
S/S Karen Chasteen City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _8th day
of _April , 2008, at 9:05 a.m.
_S/S Sarah L. Hutton Mayor
(Sarah L. Hutton)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)