Res 78 - 43 Urging Legislative Re-Evaluation of Workmen's Compensation Insurance Concept, Benefit & Cost RatiosCITY OF MENDOTA HEIGHTS
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Dakota County, Minnesota t
RESOLUTION NO. 78-63
RESOLUTION URGING LEGISLATIVE RE-EVALUATION OF WORKMEN'S
COMPENSATION INSURANCE CONCEPT, BENEFIT AND COST RATIOS
WHEREAS, a history of Mendota Heights Workmen's Compensation insurance
-*premiums versus incurred losses has been compiled by staff personnel; Arid
WHEREAS, such history indicates a uniform and consistently low incurred
loss amount of less than $1,000 per year during the years 1972 through 1977; and
WHEREAS, net annual premiums for.such Workmen's Compensation coverage have
increased from approximately $3,700 in 1972 to approximately $19,000 in 1977;
and r
WHEREAS, insurance company personnel allege that Workmen's Compensation s
costs and obligations will sky -rocket due to increased benefits mandated by
the State Legislature; and z
WHEREAS, the carrier for Mendota Heights cancelled Workmen's Compensation
coverage despite the above noted extremely good loss ratio; and
WHEREAS, it appears that Workmen's Compensation costs to municipal
employers is becoming catastrophic, vastly exceeding the 6% increase allowed
by Levy Limit Legislation;
NOW THEREFORE BE IT RESOLVED,by the City Council of -the City'of Mendota,
_Heights that the City Council expresses concern for such increasing costs; and
BE -IT FURTHER RESOLVED, that it urges its Legislators to re-evaluate the
c "cost/benefit ratios of recently mandated benefits; and
BE IT FURTHER RESOLVED, that the Workmen's Compensation Insurance concept
be changed to allow those employers 'and industries•with 'low loss ratios to,
benefit from their more favorable work/accident conditions; and
BE IT FURTHER RESOLVED, that such increased costs are beyond the control of
the local elected officials and should therefore be given the status of a
special levy under the Levy Limit legislation; and
BE IT FURTHER RESOLVED, that copies of this•resolution be sent to
Governor Perpich, Representative Kempe and Senator Knutson and other interested
parties. s
Adopted by the City Council 4of the City of Mendota Heights this Eighteenth
-day of April, 1978.
CITY COUNCIL
• * a �. CITY , OF , MENDOTA HEIGHTS
ATTEST:
By'
� ` p� r
Robert=G* Lockwood
Kathleen M. S_ wanson• ` ' ' { ` 14ayor4#` '
City Clerk <, -
AS � at �`: • ••Y a r�� i, :. •fir g• r �� f+�' '7 ,.
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