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Finance committee backs new 'faithful performance' bond; cost estimated at $636 per position
Summary
The finance committee recommended the city adopt a new faithful performance coverage bond (per changes in the Ohio Revised Code) to cover certain payroll penalties and related costs; estimated additional premium is $636 per position per year for two positions.
The finance committee reported it will prepare a resolution to purchase a 'faithful performance' coverage bond available through the city's insurer to comply with recent provisions of the Ohio Revised Code.
A committee member summarized that the ORC change allows entities to obtain insurance that covers penalties or related charges so that fiscal officers would not be personally liable and the city would avoid state recovery proceedings. The committee said the bond would supplement the existing surety bond and would cover late fees, penalties on payroll taxes and similar exposures.
Committee members estimated the additional premium would be about $636 per year per covered position and identified two positions to be covered: the finance director and the assistant finance director. The committee plans to draft a resolution and bring it to council for approval at a future meeting.
