2025 Budget for the City of Shakopee

142

2025 Annual Budget

Self Insurance Internal Service Fund

Establishment: The Self Insurance Fund was created in 2016. The initial contribution was from savings realized from increasing deductible premiums for the property/casualty policy. General liability moved to the self insurance fund during the 7/1/16 renewal. Workers Compensation moved to the self insurance fund as of the 1/1/17 renewal. In addition, a 2016 transfer of $75,000 from the General Fund surplus created an initial balance suitable for covering claims expenses. In 2017 funds were set aside to work toward health insurance self insurance. The goal of the fund is to establish an appropriate fund balance with the 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). Accomplishments:  Scott County and surrounding Cities are in talks of working toward a pooled insurance program for health insurance.

Goals/Challenges: 

Rising rates, aging workforce and increased property and equipment.

Workers Compensation:

Actual 2022

Actual 2023

Projected 2024

Projected 2025

Deductible Amount Paid

$25,000 $39,615

$25,000 $58,806

$25,000 $50,000

$25,000

N/A N/A

Experience Modification (less than 1.0 is good)

0.52

0.58

0.54

General Liability:

Actual 2022

Actual 2023

Projected 2024

Projected 2025

Deductible Amount Paid

$50,000 $10,355

$50,000 $41,725

$50,000 $20,000

$50,000

N/A N/A

Experience Modification (less than 1.0 is good)

0.851

0.773

0.754