Annual Budget
PROGRAM IMPROVEMENT DECISION PACKAGE
Fund Department Division Dept Rank City Rank[1]
1 1054 544 1  
         
TYPE OF PROGRAM ADJUSTMENT
DESCRIPTION OF PROGRAM      
Text Box: Administrative Support III (Risk Management Claims Specialist). The Risk Mgmt division acts as the City's self-administered/self-insured claims office by providing highly specialized services to employees, department management/supervisors, and citizen customers. Services include public risk mgmt services, work comp case mgmt, self-insurance/self-administration, general/auto liability self-admininistration, insurance portfolio management, and property damage subrogation. Risk Mgmt is currently staffed by a Risk Manager and full-time Risk Management Technical Specialist. Over the last six years, the Risk Mgmt division has consistently needed to utilize a temporary worker to alleviate understaffing and workload demands, and would not be able to continue to provide even minimum service levels without this additional staff support. This program improvement would recognize much of the work already being done by replacing the temporary position as full-time regular. This position will provide the bulk of necessary data entry and complex clerical tasks including creation of electronic claim files in the risk mgmt info system, draft intial claim correspondence, request investigation materials from City representatives and outside sources, maintain records and the risk management information system (Riskmaster), initiate subrogation recoveries from responsible parties, and provide customer service to employees and citizens via telephone and in person inquiries.
 
BENEFITS OF FUNDING PROGRAM      
The formal addition of a regular claims support position will at a minimum allow the Risk Management division to maintain its current service levels and alleviate the volume of work that currently overwhelms the Risk Management Division.  Additional staffing will allow for improved service delivery that currently suffers and will allow for more timely investigation and response to claims.  By utilizing this position we have already seen quicker and more successful collection of property and auto subrogation claims returning needed funds to departments suffering losses.
ESTIMATE AND EXPLANATION OF NEW REVENUE    
The Risk Management division provides both self-insurance and self-administration services for several programs for far less of an administrative cost than the City would incur if it would be forced to purchase third party administration services.  Maintaining self-administration and insurance has also allowed the City greater flexibility, internal control, and personal care of its injured workers.  Continuing to be able to provide such effective administration has been and would continue to provide cost savings to the City of Lawrence.  In addition, effective Risk Management programs over time allow for the retention of revenue otherwise lost to accidents and injuries.  Effective Risk Management programs impact productivity of revenue producing departments and reduce the potential of accidents and injuries to interfere with the organization's financial stability and ability to fulfill its mission.  Because risk is inherent in most productive activities, even the most conscientious efforts cannot eliminate all risk.  They can, however, help avoid or reduce the impact of risk on operations.  
Text Box: Due to understaffing, critical daily functions are being performed by a temporary position. In addition, the majority of risk management functions are complex and require a significant learning curve in excess of six months. Therefore turnover in temporary staff jeopardizes efficiency and accuracy of critical services. The Division has remained at its current staffing level since 1987 although the number of City employees has more than doubled. Current staffing levels are insufficient to develop and implement effective comprehensive loss control programs or provide service at best practices level and may jeopardize our ability to manage self-administered programs. Should services fall below current best practices the City may no longer be able to receive certification from the State of Kansas to remain self-insured and self-administered. The ability to obtain certain insurance coverages would be impacted as well. With the relocation of the Risk Management division away from the other members of the Administrative Services department staffing and coverage will be spread even thinner.
CONSEQUENCES OF NOT FUNDING PROGRAM
       
    
POSITIONS INVOLVED IN PROGRAM IMPROVEMENT    
 
         
FINANCING OF PROGRAM
FIRST YEAR SECOND YEAR THIRD YEAR
PERSONAL SERVICES  $            42,108  $            45,476  $            49,114
CONTRACTUAL SERVICES  $                 500  $                 500  $                 500
COMMODITIES    $                   -      
CAPITAL OUTLAY    $                   -      
TOTAL COST    $            42,608  $            45,976  $            49,614
SAVINGS FROM FUNDING PKG.  
NET COST    $            42,608
ANNUAL COST (IF DIFFERENT FROM NET)  $            42,608
Annual Budget
PROGRAM IMPROVEMENT DECISION PACKAGE
PERSONAL SERVICES
10-01 Regular Salaries    $            30,104
10-02 Overtime    $                   -  
10-04 Longevity Pay    $                   -  
10-04 Holiday Pay    $                   -  
10-06 Parttime Salaries    $                   -  
12-01 FICA    $              2,408
12-02 Unemployment    $                   31
12-03 KPERS    $              1,204
12-06 Life Insurance    $                   26
Health Insurance    $              7,835
Subtotal    $            41,608
CONTRACTUAL SERVICES
Professional Development and Training    $                 500
     $                   -  
     
       
     
Subtotal    $                 500
COMMODITIES
     $                   -  
     $                   -  
     
     
     
     
     
     
     
     
Subtotal    $                   -  
CAPITAL OUTLAY
     
     
     
     
     
Subtotal    $                   -  
TOTAL      $           42,108
[1]
Roderick L. Bremby:

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