Workers' compensation carrier exit clouds Drexel Heights FY2027 budget
Summary
Chief Douglas Chappell told the Drexel Heights board that the district's current workers' compensation carrier will stop writing policies in Arizona on July 1, 2026, leaving the district to consider the State Fund or Securis (which may require a $300,000 deposit). Salary increases are on hold until new rates are known.
During the March 27 meeting Fire Chief Douglas Chappell presented the draft FY2027 budget as an initial document and warned the board that the district had been notified its current Workers' Compensation carrier "will stop writing policies in Arizona, July 1st, 2026." He said the district is awaiting rates from two possible alternatives: the State Fund and Securis, a pool formed by Arizona fire districts that is not yet capitalized.
Chief Chappell said Securis may require a substantial deposit to capitalize the pool, noting "the deposit may be substantial at $300,000 with a five year deposit requirement." Because the district does not yet have final Workers' Compensation rates, he said salary increases and other budget changes cannot be finalized until the district receives those numbers.
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