Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Michael Bennett,  Risk Manager
CC:	Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, City Clerk/Assistant to the City Manager
Date:	June 23, 2011
RE:	Department of Insurance Assessment

Please place the following on the June 28, 2011 City Commission consent agenda:  Authorize payment of $18,283.86 to the Kansas Department of Insurance for the 2011 self-insured assessment.

Background

Each year the State of Kansas, Department of Insurance, sends every self-insured entity an assessment based on the total payments made in the previous calendar year.  This is separate from the Kansas Department of Labor assessment that we recently paid.  The percentage charged to self-insured entities increased from 0.75% in 2010 to 2% in 2011.  It has been reported that a significant portion of this fund was utilized last year to assist in balancing the state budget.  The assessment was increased so significantly to return the fund balance to a more healthy level.  Therefore, while the City of Lawrence insurance payments dropped by approximately $45,000, our assessment increased significantly from $7,182 to $18,283.86.

The budget includes approximately $10,000 for this expenditure.  The remaining funds are recommended to come from a refund recently received from the City’s excess worker’s compensation carrier, totaling approximately $21,890.

Recommendation

Staff recommends payment of $18,283.86 to the Kansas Department of Labor for the 2011 self-insured assessment.