Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Insurance topic
No spam. Unsubscribe anytime.
Treasurer flags FEMA accounts and rising insurance costs; board to review options
Summary
Town Treasurer reported stable overall fund balance but noted FEMA-related liabilities and rising insurance premiums tied to a 2023 flood claim; the board asked staff to explore insurer options, grant support for safety training/technology and to obtain exact premium impacts before next meeting.
Woodbury’s treasurer told the Select Board on Feb. 23 that the town’s overall fund balance was stable but that several FEMA‑related accounts showed negative or uncertain balances, and that a 2023 fire‑department flood claim is a major driver of higher municipal insurance rates through 2029.
“Moving down to the FEMA mitigation fund at the very bottom, that 422,000 represents what we would potentially be giving back,” the Treasurer said while reviewing January financials. The Treasurer explained that a $24,000 negative line represents a Category D refund and that recent FEMA-related entries affect restricted‑account balances.
The Treasurer described results of a recent meeting with the town’s insurer, saying the 2023 claim will influence premiums for multiple years. She presented one immediate option the insurer suggested — reducing agreed insured values for town buildings — but warned that appraisals and negotiations would be intensive and could increase risk if the town underinsures municipal buildings. She also flagged two funding opportunities: a safety‑technology grant (covering 50% of eligible costs) and a safety training scholarship that can cover up to $5,000.
Board members asked whether other insurers could be viable alternatives and whether the town should compel the fire department to make up any premium increases tied to its claim. The Treasurer said Passive operates as a municipal insurance pool that includes flood coverage and is tuned to municipal needs but agreed to explore options and to try to obtain the precise dollar impact of the fire department claim on town premiums.
Separately, the Treasurer reported an accounting reconciliation that found employee health‑insurance payroll deductions had been slightly over‑collected. She said the amount due per affected employee is about $297.13, with a total town cost (for the two affected employees) of about $594.26, and that an auditor agreed with the proposed reimbursement approach.
The board asked staff to obtain firm premium‑impact figures from the insurer, to circulate grant information and to return with additional detail at a future meeting.
