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Workers' compensation uncertainty clouds Drexel Heights Fire District FY2027 budget
Summary
At its March 27 meeting, the Drexel Heights Fire District board heard that the district's current workers' compensation carrier will stop writing Arizona policies July 1, 2026, forcing the draft FY2027 budget to hold a placeholder for rates and delaying consideration of salary increases.
At the March 27 governing board meeting, Fire Chief and District Administrator Douglas Chappell told the board the district's current Workers' Compensation carrier "will stop writing policies in Arizona, July 1st, 2026," leaving the FY2027 budget with a placeholder for insurance costs.
Chappell said the district is evaluating two alternatives: the State Fund and Securis, a pool made up of Arizona fire districts that is not fully capitalized. He told the board the Securis option "may require a deposit" and that the deposit "may be substantial at $300,000 with a five year deposit requirement." Board members pressed for clarity: Laura Dailey asked whether rates were likely to spike, and Doug Fink asked if other districts were facing the same disruption. Chappell replied that some districts joined Securis years ago and that Workers' Compensation has been a moving target for the district for about 20 years.
The district's draft budget cannot finalize salary increases or other personnel commitments until the department receives formal rate quotes from available carriers, Chappell said. The board will retain the placeholder in the draft and revisit compensation and related budget decisions once rates and deposit requirements are known.
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