Posted: Thursday, November 29th 2012 at 12:21pm
City looks at self-funding workers' comp plan
By Bill Johnson
GAINESVILLE – Gainesville City Council is considering a self-funding plan for employees' workers' compensation insurance.
A feasibility study conducted by the city’s Insurance Committee and presented during Thursday's city council meeting, indicated the city would realize a significant savings by becoming self funded.
The projected 2013 cost to maintain the current program, provided by the Georgia Municipal Association, is $845,452.
The Insurance Committee, which included the city’s Chief Financial Officer and Human Resources/Risk Manager Cindy Mallett, worked with Arthur J. Gallagher Risk Management Services, Inc. to complete the study. The results indicated that even in an adverse year, the city would save about $20,000 a year by self funding. In an average year, the cost would be about $741,138, a savings of more than $100,000.
Council members reacted positively to the study and appeared to be eager to adopt the plan at Tuesday’s work session.
"What are we waiting for?" Councilman George Wangemann asked, adding, "I don’t see how we can fail under this plan."
Once the city approves the plan, it also must be approved by the state.
The city’s insurance plan was self funded until 1999.
Council members consider creation of a TAD for Lakeshore Mall area
Council is also considering a proposal by Garrison Investment Group to create a tax allocation district (TAD) for the Lakeshore Mall area.
TADs are areas where real estate property tax monies collected above a certain threshold for a certain period of time are used to make a specified improvement.
Council members felt the revitalization of Lakeshore Mall would help stabilize and improve property values in the mall area.
Wangemann called it a "worthy project." Mayor Danny Dunagan said, "We were fortunate to have them come in and buy the mall. We need to work with them."
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