Resolution WC-009

RESOLUTION NO. WC-009

A RESOLUTION OF THE CITY OF CHANDLER WORKERS’
COMPENSATION AND EMPLOYER LIABILITY TRUST BOARD
RECOMMENDING WORKERS’ COMPENSATION CONTRIBUTION AND
RESERVE LEVEL FOR FISCAL YEAR 2022-23

WHEREAS, the City of Chandler Workers’ Compensation and Employer Liability
Trust Fund (“the Fund”) was created by the City of Chandler through Ordinance No.
4415, adopting City Code 8 2-16 et seq., on December 10, 2012; and

WHEREAS, City Code 8 2-16.3, established the City of Chandler Workers’
Compensation and Employer Liability Trust Fund Board (“the Board”); and

WHEREAS, City Code 8 2-16.4(a)(2), provides that the Board shall provide financial
oversight by evaluating claim expenses and reserve amounts; and

WHEREAS, the Chandler Workers’ Compensation and Employer Liability Trust (the
Trust”) was established by the Chandler Workers’ Compensation and Employer
Liability Trust Document (“the Trust Document”) authorized and approved by the
City of Chandler through Resolution No. 4658, adopted on January 24, 2013, and
amended by Resolution No. 4835, passed and adopted on February 26, 2015; and

WHEREAS, Article IV, Section 4.03(d), of the Trust Document provides that the
Board shall have the authority and responsibility to determine the appropriate
amount of Funds that the Trust should hold as Restricted Reserve, provided that
the Restricted Reserve shall be no less than the minimum (or nominal) amount
recommended and attested by the actuary engaged by the Council to provide
services to the Trust. The actuarial report as of June 30, 2021 notes that the
actuarial central (nominal) estimate represents the expected value over the range
of reasonably possible outcomes (as opposed to all conceivable outcomes); and

WHEREAS, Article V, Section 5.01(a), of the Trust Document provides that the
Board shall make an annual recommendation to the City Council of funds
anticipated to be needed for the following fiscal year to fulfill the needs and
purposes of the Trust. The Council shall make an appropriation of funds to the
Trust as part of the annual City budget; and

Resolution No. WC-009
Page 2

WHEREAS, the Board has determined that the current ongoing Workers’
Compensation contribution from the City of $4,383,700 is sufficient to fund the
expenditure requirements and no change to the ongoing contribution is needed.

NOW THEREFORE, BE IT RESOLVED that the City of Chandler Workers’
Compensation and Employer Liability Trust Board hereby recommends that the
current ongoing Workers’ Compensation contribution from the City of $4,383,700
remain unchanged for FY 2022-23.

PASSED AND ADOPTED by the City of Chandler Workers’ Compensation and
Employer Liability Trust Board on this 3rd day of February, 2022.

Chairperson
City of Chandler Workers’ Compensation and Employer Liability Trust Board

Attest:

City Clerk

Approved As To Form:

City Attorney <Z/