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Council flags insurance premium jump, considers levy adjustment and self‑insurance reserve
Summary
Council members reviewed year‑to‑date insurance spending (~$73,478) and an insurer estimate of an ~8% premium increase that could create a general‑fund shortfall; members discussed levy mechanics, self‑insurance options and setting aside emergency/reserve funds.
Councilors reviewed property and liability insurance costs after staff reported a year‑to‑date premium expense near $73,478 and an insurer estimate that suggested an 8% increase for the coming year.
Staff explained that, at the current collection rates, a full 8% premium climb could leave the city tens of thousands short in the general fund. Melissa (EMC, the insurer contact noted in the worksheet) had provided the premium guidance noted by staff, and councilors discussed levy mechanics and which funds can legally be used to cover property and liability insurance. Council members asked for clarity on limits to levy revenue and whether enterprise funds (water/sewer) should cover portions of the insurance cost for assets they use.
The council explored self‑insurance as an alternative to paying full market premiums and discussed setting aside an emergency/self‑insurance reserve (examples floated: $50,000–$60,000 annually) to reduce future premium exposure. Staff noted the finance committee would review asset valuations and recommend which items could be self‑insured versus retained on the policy (for example, low‑value park structures removed from coverage in a prior review).
Next steps: staff will confirm the insurer's estimate in writing, identify which premiums are allocated to enterprise funds vs. general fund, and present finance‑committee recommendations about levies and possible emergency/self‑insurance contributions.
