Municipal insurance budget rises ~25%; council asks treasurer to examine causes and alternatives

Treasurer Kristen Lindberg told the Committee on Administration of Finance that the municipal liability insurance line in the FY27 budget rose about 25% compared with the prior year. Lindberg said the gross premium in the vendor estimate was roughly $1.1–1.3 million, with the city’s net share (after removing the school department portion and applying participation credits) calculated at $676,690 for FY27.

Councilors asked why the increase was so large. Lindberg said annual premium increases, premium adjustments for newer equipment (for example, replacement of older vehicles with higher-premium newer vehicles such as ambulances or fire apparatus) and general insurance-market pressure all contribute. "We have to take into consideration... when we replace older vehicles with new vehicles, the insurance is higher on the newer vehicle," she said.

Council King and others pressed whether the city had other carrier options beyond the agency commonly used by municipal clients (transcribed in the meeting as "Maya"). Lindberg said she had not yet surveyed the market comprehensively and agreed to look into other providers and bring back comparisons. Councilors also requested clearer presentation of premium figures in the final budget packet so the public and councilors can distinguish gross insurer bills, credits, and the net city share.

Next steps: Treasurer Lindberg said she would follow up with the insurer’s detailed bill and check whether other carriers or competitive procurement options exist; she will report findings to the committee and provide corrected/clarified premium detail for the final budget book.