Council approves insurance renewals and budget amendment as premiums rise with city growth

Georgetown’s council on June 22 approved municipal orders to renew the city’s liability/property and workers’ compensation coverages for FY2026–27 after staff described notable premium increases tied to asset and fleet growth.

Patrick Johnston, presenting the municipal order, said city liability and property premiums rose about 20% this renewal cycle and workers' compensation rose roughly 17.5%. He attributed the liability increase in part to a net 22‑unit growth in the city fleet (five new vehicles accounted for about $5.1 million in value and $60,000 in premium), a recent $3.7 million increase in property values (including City Hall and other items), and an elevated workers‑comp experience-mod factor (1.38). Johnston told council overall liability/property premium increases totaled roughly $180,000 year over year.

Council approved both the primary municipal order for insurance renewals and a related municipal order to purchase a citywide blanket 'honesty bond' (employee fidelity/crime coverage) that will replace individual bonds. The council later considered and unanimously approved a second‑reading budget amendment for FY2025–26 that reallocates several line items across general, capital, and special funds (including lease proceeds and capital outlays) and was presented to reconcile carry‑forwards and late procurements.

Why it matters: insurance costs are rising locally as the city grows and adds assets; the blanket bond policy consolidates fidelity coverage for employees while the budget amendment reassigns one‑time expenses and capital transfers to align with project timing and audit preparation.