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hundred thousand dollars less for going with the Gallagher program. He believed the risk window for the Gallagher Plan is between the $135,000 we think we are going to spend and the $600,000. Mrs. Tillman did not see what the county has to lose by that program. She stressed that if you have a good year, you will have dollars left in your reserve totaling $300-400,000 plus interest since the typical claims are not paid in the year they occur, and it takes 2 or 3 years to pay a claim. Discussion continued about how much should be put in a reserve. Mrs. Tillman assumed you would take the balance of whatever was budgeted for insurance and put it into a bank account and let it accumulate interest and call it the insurance fund. She believed Gallagher suggested putting $230,000 or more in a loss fund, but stated that she personally would put in all the $600,000 or whatever is left. Commissioner Bird noted that, in other words, we budgeted about 1.2 million; so, we would put $600,000 in their premium and $600,000 in reserve and let it draw interest. Mr. Cotrell of the Florida League of Cities informed the Board that in the 86/87 year, they gave a $58,000 return on premium, and on the 87/88 year, which is coming to audit now, they expect a return based on the drop in premium for the 88/89 year. In addition to that, on the Workers Compensation for 85/86, the county received just under $53,000 in administrative savings which was investment income passed back to the members, and for 86/87 they received just under $43,000 in administrative savings returns. Question arose in regard to the net difference between the rebate and the cost of audit, and detailed discussion regarding audit and rebates continued at length and in detail. Mr. Cotrell of Florida League explained that the only time an audit comes into play is in change of exposure. It does not change the rates themselves; they remain the same - what they go 58 N O V 11988 BOOK 75 F"GE. 58