5.2. SR 10-27-2003 - Laserfiche WebLink

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Page 2 Special points of interest include: 1) Rates - the basic property rates have increased an average of 10% - due primarily to reinsurance costs for the LMCIT program. Other lines have remained fairly stable this year -Ratable expenditures are higher than last year by about $830,000. -Property values insured have risen from about $45.6 million to $63.4 million. Maximus appraised values increased the scheduled values and Public Safety Center, City Hall and other construction projects are now complete. 2) Liquor Liability coverage and the liquor store facility and contents have been added to the schedule. Prior carrier non-renewed in April and coverage was added on pro-rated basis as of April 1,2003. This year's renewal includes a full annual premium cost of about $12,000. 3) Workers compensation coverage - also with LMCIT, renewed on October 1 st. This year's Experience Modifier is again excellent at .78. Payroll has increased by about $135,000 over last year's renewal. Firefighters are also included. Dividends - LMCIT paid the City a dividend of $44,557, last December. Continued attention to safety & loss control under the League programs will continue to control costs for the League's self-insured program. Any possible dividends for this year will be announced this coming December. 4) Deductible Options - we have not quoted deductible options this year as a change was made last year. The overall deductible was raised to $1,000. We will continue with this plan for another year or two before considering another change. Generally, several years experience are required to determine impacts. 5) An optional quote for Excess Liability coverage in the amount of $1,000,000 has been secured. The additional cost would be $ 44,672. The City has elected not to purchase these additional limits in the past. I offer the option again for your consideration. 6) Also an option - an increase to $300,000 on the Faithful Performance Bond limit would cost an additional $194 annually. Your current limit is $200,000. 7) We did not include the option for No-Fault Sewer Back-Up coverage, since the City decided not to purchase this coverage last year. The premium rating has remained at about 8-8.5% of the underlying liability premiums. The approximate premium charge for this coverage would $13,500. If the City wishes to purchase this coverage this year, we can update the application materials, get a new "firm" quote, and bring it back for your consideration.