FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

WORK COMP INSURANCE

FUND #113

FUND INFORMATION

This fund accounts for the City's share of Worker's Compensation Insurance premiums. This fund is one of seven separate employee benefits funds created by the City to account for certain employee benefits. Legal authority for the fund is established by two sections of the Iowa Code. Iowa State Code chapter 386.61 provides authority for municipalities to establish a fund for the purpose of "accounting for pension and related employee benefit funds as provided by the City Finance Committee," while also providing the authority to levy a tax in the amount necessary to meet these obligations. Chapter 545.4 of the Administrative Code of Iowa provides the City Finance Committee's definition of eligible benefits and how they must be accounted for. The City is a member of the Iowa Municipalities Worker's Compensation Insurance Association (IMWCA), sponsored by the Iowa League of Cities. The City joined IMWCA in April 2013, and completed our first full fiscal year as a member. The City levies property taxes to cover a portion of the insurance premiums needed each year. These premiums cover employees whose salaries are budgeted within the General Fund. Employee's whose salaries are budgeted within an Enterprise Fund are paid directly by the revenue derived from those operations. For FY17, the levy to pay for Worker's Compensation Insurance was $0.36695 / $1,000 of valuation. This was an increase over the FY16 levy of $0.34971, an increase of $0.01724 / $1,000 of valuation. The primary factor in the increase was due increasing wages and premium amounts for Worker's Compensation insurance. The fund balance decreased $27,424.27 over the ending fund balance for FY16. The reason for the decrease was partially a planned use of reserves, however the renewal in FY17 came in over budget due to increased claims.

CURRENT BUDGET

YEAR TO DATE

% OF

ACTUAL FY 2016

ACTUAL

BUDGET

REVENUES

TAXES

169,125.00

152,902.85

90.41 89.84

3,653.00 65,370.00 147,144.52 -

INTERGOVERNMENTAL

7,316.00

6,572.88

MISCELLANEOUS OTHER FINANCING

-

-

-

43,442.00

43,442.00

100.00

TOTAL REVENUES

219,883.00

202,917.73

92.28

216,167.52

EXPENDITURES EMPLOYEE BENEFITS CONTRACTUAL SVCS

3,000.00

-

-

227,567.00

230,342.00

101.22

170,624.00 170,624.00

230,342.00

99.90

230,567.00

TOTAL EXPENDITURES

Fund Balance

INCREASE / (DECREASE)

BALANCE

BALANCE

REVENUES

EXPENDITURES

JULY 1, 2016

JUNE 30, 2017

(27,424.27)

196,202.21

202,917.73

230,342.00

168,777.94

SPECIAL REVENUE