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District insurance costs drive budget pressure; Marsh flagged $1.2 million in potential savings
Summary
Staff said insurance/internal-service costs increased (about 25%) and that Marsh identified roughly $1,200,000 in savings that were not built into fleet projections; staff warned that projected savings are contingent on implementing vendor recommendations.
Board members were told that insurance and internal-service costs are a major driver of budget changes this year. Tanjara said the insurance budget was increased about 25%, and that exact single-line dollar totals were not provided in the meeting record.
Andrew Lethbridge, MPD superintendent, told the board Marsh identified roughly $1,200,000 in savings that were not included in fleet projections and said that combined recommendations could reduce overall district costs if implemented. "With the inclusion of Marsh, they had savings that they projected around $1,200,000," Lethbridge said, adding that the budget remains contingent on those recommendations and the district will pursue contract and operational changes to realize savings.
Board members discussed timing, assumptions and the need to reconcile insurance projections with year-end accounting before finalizing the budget.
