From
Lisa Norris, Human Resources Director
Title
Quarterly Risk Fund Review
Presenter
Ashley Land, Human Resources Manager
Recommended Action
Review
Analysis
Risk Fund (Attachment, page 1): The Risk fund continues to run fairly well, but we are in storm season so we will remain cautiously optimistic. Revenues are doing well, especially with the work from our City Attorney's office and staff who have collected over $83,000 in subrogation efforts so far this year, surpassing the budgeted amount of $40,000. Additionally, if you refer to the property projection (column 4, row 10), we project $1.1 million in reimbursement by year-end. That is due to the final TML reimbursement being received in late April of $834,730 for property losses from the 2015 flood damage - thereby closing out that claim.
On the expense side, column 4, row 28, our property premiums are expected to hit about $800,000. This is due to absorption of both Epic/Epic Waters which are large buildings, along with other miscellaneous property remodels and adjustments occuring this year which are also impacted by greater property premium costs due to all of the losses (flooding, hail, wind damage) across Texas in the past year primarily caused by storms such as Hurricane Harvey. Overall, row 46, column 4 reflects a positive operating balance, primarily due to the large reimbursement check received from TML that will reflect in April.
Workers Compensation (Attachment pages 2-4): Overall, our total workers compensation number of occurences and costs per claim are up as compared to last year (slide 2). This increase impacts our costs overall as well, showing total paid and incurred costs higher than this time last year as well. Although the increase looks dramatic, we are still amazingly low with a city our size, our at risk groups for injury - Public Works, Police and Fire, as well as our employee size. We will continue to hit education of our large departments as this increase is caused primarily from a substantial increase in treatment at the Emergency Rooms instead of heading to Concentra. We have gained greater control on the personal injury side (non-workers compensation injuries related to the Insurance Fund), but will have to increase education on Workers Compensation as well. The ER costs are upwards of $2,000 or more per visit, when this could be only a few hundred if treated and released at Concentra when such treatment is appropriate. However, our injuries have been more severe as well, with surgeries required on some, so this may just be a little uptick on injuries that may come back down over time.
Liability and Property (Attachment pages 5-6):
Liability and Auto-Property costs for the second quarter of fiscal year 2018 are down just slightly from the same quarter last year. Number of claims filed are about "par for the course" on Liability claims, but lower than the same quarter in the past two fiscal years for # of Auto/Property losses (127 this year versus 150 in 2017 and 153 in 2016).
Funds Recovered (Attachment, page 7):
Our City Attorney's Office staff continue to work hard collecting funds in-house (slide 7) for losses caused by third-parties and beneath our deductibles with about $38,000 collected this quarter and nearly $84,000 collected so far this fiscal year. They also do a great job in tracking TML reimbursements, losses and working with the departments to make the process of filing claims seamless.
Financial Consideration
None. Information only.