The Experience Modification (E-MOD) is an industry rating used by insurance companies for the calculation of workers’ compensation insurance premiums. The E-MOD rates and measures the future financial risk based on current and historical losses (costs) related to workplace injuries. The City administers a self-insured workers’ compensation program and is not required to pay workers’ compensation insurance; however, the City is required to contribute to state funds, in the form of taxes, used to pay for operational costs for the Industrial Commission of Arizona, the state agency responsible for the administration of rules and regulations related to workers’ compensation claims. The Industrial Commission of Arizona calculates what the City would have paid in workers’ compensation insurance premiums and uses that premium to calculate the amount of taxes the City will pay for the previous tax year. When the City’s E-MOD rate is lower, the insurance premium calculation is lower, which results in lower annual taxes and savings to the City’s workers’ compensation trust fund.