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Maplewood budget session flags higher insurance costs, refined legal budgeting and a new court report
Summary
City finance staff told council insurance premiums are rising substantially and projected a 30% increase in bonding and insurance; staff also itemized legal expenses and proposed a new court activity report for future council meetings.
During the May 6 work session staff identified several notable changes in the executive and court budgets: a substantial increase in insurance and bonding costs, a reworked legal-services budget and refined health/ancillary insurance estimates for the court account.
Staff said the executive account shows a roughly 30% increase in bonding and insurance budgeted for next year based on current indications from insurers; staff said they will seek bids and adjust the number if lower quotes arrive. The presenter said, “Until we get bids back, this is what we've been told to budget.”
On legal costs, staff said the city appropriated $250,000 last year; projected legal spending for the coming year is about $170,000. Staff itemized approximately $150,000 for the city attorney and an additional $20,000 for special legal counsel and bond counsel to make those distinctions visible in the budget.
Staff also explained the court (legal/court budget) lines: insurance projections in the court account were reassessed downward (from $19,000 to $11,000) because the current employee’s coverage level and ancillary insurance lines reduced exposure. Council member questions prompted staff to agree to add a court activity report to an upcoming council meeting to provide more operational detail.
Staff confirmed the city pays an insurance retention (deductible) on litigated claims; for the current lawsuit the retention was $20,000 and insurance covered the balance. Staff noted auditors and accounting conventions also drove a reclassification of some IT subscription costs into the executive operating budget rather than capital because they are subscription services.
No formal budget votes were taken on these items; staff said they will continue to seek bids (insurance) and return with any adjustments if lower numbers are obtained.
