2012-2013 Budget - City of Saginaw MI

REVENUE BUDGET SUMMARYWORKERS COMPENSATION FUNDThe Workers Compensation Fund is considered to be anInternal Service Fund of the city. That means that thisfund accounts for goods and/or services provided to onedepartment by another on a cost reimbursement basis. Inthe case of this fund, the workers compensation revenuesare based on a percentage of gross wages for allemployees, depending on employee classification. Thecity utilizes the median of industrial rates to determinethe percentage to assess to each employmentclassification. Saginaw Bay Underwriters assists the citywith determining those rates. The WorkersCompensation Fund Revenues are budgeted at$1,260,488, for FY 2013. This is an increase of $6,253,from the FY 2012 Approved Budget. This increase inrevenues is attributable to the City receiving moniesfrom the state for reimbursement on WorkersCompensation Claims. This reimbursement isadministered by Sedgwick, one of the city’s third partyproviders.SUMMARY OF REVENUES2008/09 2009/10 2010/11 2011/12 2011/12 2011/12 2012/13Actual Actual Actual Approved Adjusted Projected ApprovedState Grants 0 2,416 0 0 0 0 0Charge for Services 897,211 1,283,890 2,386,268 1,249,385 1,249,385 1,101,843 1,249,385Interest and Rents 33,555 8,481 4,921 4,850 4,850 184 4,850Other Revenues 0 0 7,228 0 0 40,785 6,253REVENUE TRENDSTotal Revenues 930,766 1,294,787 2,398,417 1,254,235 1,254,235 1,142,812 1,260,4882,000,000Total Workers Compensation RevenuesSince 20021,500,0001,000,000500,000Total WorkersCompensation Revenues-The above graph reflects numerical data from FY 2001 – FY 2011 Actual Revenues, and FY 2012 and FY 2013 ApprovedBudgets. As previously mentions, the Workers Compensation Fund is based on a percentage of gross wages, citywide.Since 2001, the city experienced significant fluctuations in the revenue stream. Most significantly, the drop in revenue inFY 2009 is attributed to deduction of $453,000, in excess workers compensation. For FY 2010 – 2012 revenues increasedand remained steady. This is due to increases to employee wages. In addition, in FY 2013, the revenues for this fund areexpected to remain steady.307