City of Morgan Hill Fiscal Years 2020- 2022 Recommended Operating and CIP Budgets

Workers’ Compensation (continued)

Financial Comments FY 18-19 saw a decrease in the total number of claims reported from 28 to 19. There was a drop in severity of these new claims from an average Incurred Cost per New Claim from $9,070 in FY 17- 18 to $6,819 in FY 18-19. There was an increase in average number of lost days on new claims from 23.5 days to 37.4 days. On the entire program, the open inventory of claims increased by 6% and the Future Reserves increased by $25,254 to $465,944. As of February 26, 2020, we have filed 7 new claims in FY 19-20. The net result for the City, as of this date, is an increase of one claim with a total of 17 open inventory claims.

306 INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS