Jobs
Contact
A-Z
News
Explore
Residents
Business
Government
Open Menu
Close Menu
Explore
Residents
Business
Government
Print
Reading Mode
Back to Calendar
Return
ITEM 15
City Council Memorandum Management Services Memo No.
21-014
Date:
October 11, 2021
To:
Mayor and Council
Thru
:
Joshua H. Wright, City Manager
Dawn Lang, Deputy City Manager - CFO
From:
Dawn Lang, Deputy City Manager - Chief Financial Officer
Subject:
FY 2021-22, Municipal Firefighter Cancer Reimbursement Fund Assessment per A.R.S. § 23-1703
Proposed Motion:
Move City Council approve the payment to the Industrial Commission of Arizona (ICA), Municipal Firefighter Cancer Reimbursement Fund, in the amount of $676,428.89, for Fiscal Year 2021-2022 assessment, and approve a budget transfer of $676,428.89 from the General Fund, Management Services Department, Tax and License Division (101.1240.5816), to the Workers Compensation and Employer Liability Trust Fund, City Manager Department, Human Resources Division (736.1250.5618), to shift the payment pursuant to A.R.S. § 23-1703.
Background/Discussion
As an element of the State budget process this year, the annual assessment to support the administration of Transaction Privilege Tax (TPT) by the Department of Revenue (DOR) based on A.R.S. § 42-5041 was repealed. Additionally, the Legislature established the Municipal Firefighters Cancer Reimbursement Fund (MFCR) and essentially swapped having cities and towns pay the State to operate one of its departments for paying into a fund that cannot be swept and can only be paid back to cities and towns to offset catastrophic worker's compensation claims related to cancer.
Beginning this year, the MFCR assessment will be billed by the Industrial Commission of Arizona (ICA). This annual assessment is $15,000,000 per year in statewide aggregate, allocated to all cities and towns based on the most recent July 1 population estimate (2019), which is also how the DOR assessment was allocated. The FY 2021-22 assessed amount for Chandler is $676,428.89. The DOR assessment is currently budgeted in the Management Services, Tax and License Division, but the League of Arizona Cities & Towns recommends this assessment be included within the City's Workers Compensation Fund going forward, as it is a benefit that can be used to offset future claims.
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.