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CABARRUS COUNTY <br />BOARD OF COMMISSIONERS <br />REGULAR MEETING <br />MAY 19 2014 <br />6:30 P.M. <br />AGENDA CATEGORY: <br />New Business <br />SUBJECT: <br />Finance - Contribution to the Workers Compensation Fund <br />BRIEF SUMMARY: <br />The County eliminated annual funding of the Workers Compensation <br />Fund in FY 2006. Since then, the General Fund has contributed <br />$2,270,000 from FY 2010 -2012 to support the Workers Compensation <br />Fund. Our claims have been $738,703 per year over the last 5.75 years <br />and $895,313 per year over the last 3.75 years. <br />In order to avoid experiencing such a drastic change to the budget in <br />FY15, we recommend funding $981,000 from the Assigned Fund Balance <br />(one -time contribution) for Internal Service Funds this fiscal year, then <br />funding the program approximately $300,000 (recurring funding) in FY15 <br />and an additional $460,000 in FY16 ( recurring funding) to build the base <br />claim estimated costs of $760,000 into our budget. This would allow the <br />County to release any additional assigned fund balance related to internal <br />service funds. <br />It bears noting that our premiums in a "regular" workers compensation <br />insurance arrangement would be approximately $1,644,000 annually. <br />Thus our savings over the last 5.75 years, after this $981,000 contribution, <br />is $5,791,000. <br />REQUESTED ACTION: <br />Motion to adopt budget amendment. <br />G -4 Page 207 <br />