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Roswell Air Center projects smaller insurance bill next fiscal year as tenants can opt out
Summary
Airport staff told the Airport Advisory Commission that tenants were being offered the ability to carry their own insurance starting in the next fiscal year, which staff says will reduce city-paid premiums and has the airport operating in the black this month.
Roswell — Airport staff told the Airport Advisory Commission on Feb. 4 that the airport is operating with a modest surplus this fiscal year and expects a reduction in city-paid building-insurance costs next year after tenants were given the option to buy their own coverage.
Bobby, a long‑time airport staff member presenting the monthly financials, said operating revenue for the most recent period shows "we were in the black" and that the airport is "a hundred and $105,430.55 to the good." He and other staff explained that the city recently shifted building insurance billing so tenants can opt out and secure their own policies; if tenants provide their own insurance, the city will be reimbursed for premiums it has paid on their behalf.
Why it matters: the change is likely to shrink the city's nonoperating insurance revenue line next fiscal year, staff said, and could materially reduce the roughly $909,000 figure shown under current policy projections. Commission members pressed staff on timing and reporting requirements so the city can capture any premium reimbursements before the policy lapses in June.
Details: staff said tenants must notify the city by about April 1 whether they will keep the city policy or obtain their own. The current policy runs through June; staff said the city expects to continue collecting premiums through that date and "that $909,000 will obviously be much lower next year, next fiscal year," though the precise reduction depends on how many tenants opt out. Commission members asked that tenant declarations be submitted promptly so the city finance office can reconcile ACH payments and other timing issues that have produced small month‑to‑month variances.
Commission discussion also covered how the city handles vacant, city‑owned buildings that remain insured by the city (those remain on the city's policy and will continue to be paid by the city). Staff said tenants who opt out will be given minimum liability and structure coverages consistent with the amounts the city had previously carried.
Staff framed the insurance change as part of a broader effort to keep the airport "in the black" and reduce recurring city costs; commissioners asked staff to provide a follow‑up showing estimated reimbursements and the projected fiscal‑year revenue impact.
Ending: Staff committed to tracking tenant opt‑outs, reporting back on collections timing, and returning to the commission with more detail on projected savings and any remaining shortfalls caused by vacant buildings the city must continue to insure.
