City staff told the Committee of the Whole on July 10 that the city’s property and liability insurance through the Public Entities Pool (PEP) will expire July 31 and that the renewal quote for Aug. 1 through the next policy year is $257,530, an increase of about $38,000 over 2024.

The finance director (Aneta) and staff said the increase reflects market conditions and additional exposures from added staffing, vehicle purchases, and building improvements. They asked the committee to authorize legislation to continue the city’s membership in PEP and to add an emergency supplemental appropriation of $29,300 to the general fund because the current budget line held $228,236 for the policy.

A motion to prepare the necessary legislation and a motion to prepare emergency ordinance language for the supplemental appropriation were both made and passed by roll call. Council approved moving forward with drafting the renewal ordinance and a request for a supplemental appropriation; staff will bring the emergency ordinance to the next regular council meeting for formal adoption and appropriation.

Why it matters: The policy renewal affects the city’s insurance coverage and the general fund budget. A supplemental appropriation is being requested to cover the increased premium rather than reducing coverage. The committee flagged the additional cost and authorized staff to prepare emergency legislation for council consideration.

No vote on final appropriation was recorded at this meeting; the committee approved drafting the legislation to be considered at the next regular meeting.