O-1987-1514-A - Laserfiche WebLink

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I;. I - iI - j - J J j I J I I I I I I I \, ":'. e e CITY OF LA PORTE INTER-OFFICE MEMORANDUM TO: Robert T. Herrera, City Manager 5/4/87. , FROM: Doug de la Morena, Human Resources Manager SUBJECT: Insurance Shortfalls We are requesting that $275,000 be transferred to the general liability and worker's compensation insurance accounts in order to allow the City to pay its remaining annual premiums and possible deductibles. Our analysis indicates that $145,661 was underbudgeted in October 1986 for general liability and worker's compensation insurance. Additionally, we learned only days ago that our annual general liability premiums have been increased approximately 30' to $509,138, retroacti ve to October 1986. Our worker's compensation insurance has also risen some 6%, retroactive to October 1986. The requested $275,000 will bring our insurance accounts to solvency for the remainder of the fiscal year. The attached table (Exhibit A) demonstrates our insurance shortfalls for FY 86-87. He will receive a TML bill for the month of May in the amount of $111,.375.62. This is the annual premium rerate adjustment. Of this figure, $42,429 is the monthly premium installment leaving approximately $69,000 as this year's adjustment. This figure is included in the total adjustment request of $273,425. While these figures may be alarming, our efforts have already resulted in $36,580 of premium savings which would have driven the requested figure that much higher. The annual premium rerates and state board of insurance increases in January 1987 are significant factors in this year's 'adjustment.