Parma law director cites market insurance pressures as claims fund jumps to $1.33 million
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Law Director Tuma told council the proposed 2026 claims fund would increase to about $1.33 million, attributing most of the rise to higher municipal insurance premiums and noting Parma Codified Ordinance 104.02 requires a minimum annual allocation to the claims account.
Law Director Tuma told Parma City Council that the law department’s 2026 budget includes larger allocations for claims and insurance, with the proposed claims account (Fund 605) set at $1,328,419.26.
Tuma attributed the increase primarily to a tightening municipal insurance market and rising premiums rather than a surge in city claims. “The number of insurance carriers in the municipal liability business has drastically shrunk,” he said, and that market trend has driven up costs. He also noted there are a small number of pending matters in litigation that factor into claims planning.
Tuma cited Parma Codified Ordinance 104.02 when explaining required reserves and cash flow, saying the city must annually allocate at least $400,000 to the account to meet obligations. The law director described other law-department funds—juvenile diversion (Fund 170), the traffic intervention program (TIP, Fund 176) and VOCA (Victims of Crime Act) funds—while noting some grant-funded lines require local matching funds and that staffing changes (hiring a principal attorney) account for variations in other line items.
Council members pressed for causes behind the five-year trend in claims budgeting; Tuma and assistant legal staff answered that the primary driver is market rate increases and that the city continues to pursue cost-control measures and limit outside counsel as feasible.
During the discussion members referenced two active litigations involving the city; staff said one appears likely to be summarily dismissed while another remains active. Tuma said the administration will continue to monitor legal exposure and insurance-market developments while keeping council informed.