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MINUTES <br />CITY COUNCIL <br />FEBRUARY 24, 2010 <br />DEDUCTIBLE <br />LOCAL <br />GOVERNMENT <br />AID <br />CANADIAN <br />DAYS <br />FIREWORKS <br />Policy with the League of MN Cities Insurance Trust. The Administrator <br />noted that for the past few years, the City has chosen a $2,500 per <br />occurrence medical cost deductible which saved the City $1,868 in <br />premium for 2009. The Administrator reported that since 1990 the City <br />has never had a claim that reached that amount, and reviewed the City's <br />claim history since 1990. The Administrator suggested that the City <br />Council may want to consider choosing a higher deductible. He noted, <br />however, that past performance is not a guarantee of future results. <br />The Administrator reviewed the additional deductible options that are <br />available to the City: <br />o $5,000 11.0% savings, or $2,750 based on an expected <br />premium of $25,000 or $875 additional over the $2,500 <br />deductible option. <br />o $10,000 15.50% savings, or $3,875 or $2,000 additional <br />over the $2,500 deductible option. <br />The Administrator recommended a high deductible option and felt it was <br />not unreasonable to increase the deductible to the $10,000 level. <br />Keis asked if the City's rates were reflective of claims. The Administrator <br />reported that experience modifications are a component of the rate <br />calculation, and indicated that the City's experience mod is on the low <br />end. Keis asked if the City had the opportunity in future years to change <br />the deductible. The Administrator replied that that was an option. <br />Mr. Montour introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2010 -2 -96 APPROVING AND AUTHORIZING <br />A $10,000 DEDUCTIBLE FOR THE CITY'S WORKER'S <br />COMPENSATION POLICY WITH THE LEAGUE OF MN CITIES <br />INSURANCE TRUST <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (3). <br />Nays (0). Resolution declared adopted. <br />The City Administrator reviewed his February 19, 2010 report relative to <br />the State's proposed cuts to Local Government Aid (LGA) and Market <br />Value Homestead Credits (MVHC). He reviewed the history of LGA for <br />2008 and 2009, and pointed out that for 2010 the State is totally <br />eliminating LGA to Little Canada as well as reducing MVHC by $47,047 <br />which the City is forced to absorb. This is a negative impact on the City's <br />2010 budget of $243,584. The Administrator pointed out that while the <br />5 <br />12 <br />