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Atherton staff say workers’ comp JPA under strain; town has reserves to handle potential exit
Summary
Staff reported the town participates in a workers’ compensation JPA that some member agencies may dissolve. Atherton’s staff said the town currently holds roughly $1.3 million in the workers’ compensation fund and is exploring alternatives and possible tail-claims liabilities if the town changes JPA arrangements.
Finance Director Robert Baron III briefed the council on internal-service funds and said the town’s workers’ compensation joint-powers authority (JPA) is experiencing challenges and that some member agencies have discussed withdrawing. Baron said the JPA has agreed to continue through the end of the fiscal year, giving member agencies time to explore alternatives.
Why it matters: a JPA dissolution or a change in shared-insurance arrangements can create immediate funding needs (for “tail claims” or different reserve requirements) for municipal employers.
Baron reported that the town’s workers’ compensation fund balance is approximately $1.3 million and that staff believe the town has sufficient reserves “to weather any changes” such as a required transfer into a new JPA or other reserve rules. Council members asked staff to identify where the reserve balances appear in the attachments; staff confirmed the balances are present in the internal-service fund attachments and will clarify the presentation.
No formal decisions were made; councilors directed staff to continue exploring alternative JPA arrangements and to report back with options in the coming months.
Ending: staff will return with clearer attachments showing the fund balance and options for replacement arrangements if the JPA dissolves or changes its terms.
