Background  

The Workers Compensation Fund covers all expenses related to Workers Compensation. These include medical claims, salary replacement and final settlements for work related injuries. This Fund had a total budget of $1,683,500 for Fiscal Year 2015. During Fiscal Year 2015, among other expenses, the Village paid extensive medical bills for one injured employee and Village Board approved four final settlements, including one career-ending settlement.

As a result of this year’s extraordinary Workers Compensation expenditures, this Fund is currently over budget by about $560,000 for FY2015.  Accordingly, a budget amendment is necessary in order to cover the expenses for the fiscal year.  

Recommendation:

It is recommended that the Village Board amend the FY2015 Workers Compensation Insurance Fund budget by increasing the Claims Medical Loss account by $260,000 and the Claims WC Salary Replacement account by $300,000, for a total budget amendment of $560,000.  There are sufficient reserves in the Workers Compensation Fund to cover this budget amendment.