Drexel Heights board flags workers’ compensation uncertainty as key budget risk for FY2027

Fire Chief Douglas Chappell told the Drexel Heights Fire District Governing Board on March 27 that the district’s current workers’ compensation carrier will stop writing policies in Arizona effective July 1, 2026, creating a major uncertainty for the Fiscal Year 2027 budget. Chappell said the district is waiting for rate quotes from two possible alternatives — the State Fund and Securis — and that the budget currently includes a placeholder for workers’ compensation until definitive rates are received.

Chappell cautioned that Securis, a pool made up of other Arizona fire districts, may require a capital deposit to participate; he said that deposit "may be substantial at $300,000" with a five-year deposit requirement. Because the district lacks final rate information, Chappell said salary increases and other budgetary changes cannot be considered or finalized. The chief also referenced a prior line-of-duty death four years ago as a past driver of high claims costs. The board did not take formal action on the budget draft during the meeting; the discussion was presented as preliminary information for future budgeting decisions.