Drexel Heights begins FY2027 budget planning as workers' compensation coverage changes

At the March 27 meeting the Drexel Heights Fire District Governing Board reviewed a draft FY2027 budget but paused final decisions because the district has not received next-year workers' compensation rates. Chief Douglas Chappell said the district was notified last Friday that its current workers' compensation carrier will stop writing policies in Arizona effective July 1, 2026. He identified two alternative sources: the State Fund and Securis, a pool of Arizona fire districts.

Chappell told the board that Securis is not capitalized and may require districts to make a deposit to capitalize the pool; he said the deposit "may be substantial at $300,000 with a five year deposit requirement." He said salary increases and other budget changes cannot be considered until the district has firm workers' compensation rates. Board members asked clarifying questions about how other districts have managed the change and about historical cost drivers; Chappell referenced a line-of-duty death four years ago as a particularly expensive claim for the district.