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Council discusses MMIA wind-down and options for workers' compensation equity
Summary
Staff reported the city is covered through June 30 and that a decision on whether to cash out equity accumulated under MMIA or leave funds invested will be brought to the council next month; options include using funds for infrastructure or setting up a local endowment.
Finance/staff briefed the council on the announced wind-down of the MMIA insurance program and options facing the city.
Staff said the city remains covered through June 30 under the current MMIA policy and that new workers' compensation coverage is planned to begin July 1 regardless of the council—s decision. The staff speaker summarized options: cash out accumulated equity now to get funds sooner, or leave the equity invested in MMIA and defer a decision while monitoring investment returns and claims experience.
The staff speaker noted trade-offs: cashing out provides known funds now but foregoes possible future investment gains; leaving equity invested could yield higher returns but delay distributions. He said the city realized nearly $100,000 in investment income last year on its share of MMIA investments and that a fuller recommendation with scenarios and spending options will be presented to the council next month.
Council members suggested using some equity distributions for long-term infrastructure or to seed a city-level endowment to support projects over time. Staff agreed to prepare options illustrating spending and retention scenarios for council consideration.
