7.1. SR 10-20-2008 - Laserfiche WebLink

Home Browse Search

+ ` M1 t 2 Main ~ire`c^t Efk river Mfd 553:30 Phor7e: f763~ 441-2500 ~Iwvw.firstnationaftin~nci~f.cam t7ctaber l4, 2008 To: Hanaralale iViayor :. Couz~ril Persans City of Elk River Thank you far taking time an yaur October 20th Meeting agenda to discuss the City's 2008 League of Minnesata Cities Insurance Trust proposal. Once agaiia, yaur City staff and llae ERML7 staff`have dare excellent wank in helping to put together the City's renewal propasal. I appreciate the apportunity to work with there all, and would like to pa}r special eornpliment to Tim Sian far his very good ideas and questions as we warked with the League to put this renewal together. As you can see, there is anc~tlu:r increase in premium cast this year - abaut 8,8°l° gar almost. $29,000. In general, it~+:~ increase is due to exposure changes, and eat to LMCIT rate increases. The Property schedule is greater lay abaut ~ 17..6 xt7i.ll.an in value, and. tl~e City's ratable expenditures are also greater than last year's. We will offei° same options fa the Co~,uYCil to consider as cost control measures, and will also be happy to investigate any other questiozas the Council may have. The folio~~>ng paints irzel~i~?e Highlights we feel are important to bring to the Council's attention: 1 } 2008 LMCIT :Rates -- LMC1T property rates did fiat change far 2008. Municipal liability and auto liability rates decreased by 4%, and auto physical damage rates decreased. ley 10%. These rate reductions have helped to offset some of the increase its premium cast due to increased exposures. 2} The League of Minnesota Cities Insurance Tn~st paid a dividend to the City of 1=:1:k River in the atr~aunt of $ 34,230 in. December 2007. 'I"l~.is is significantly greater than t11e dividend paid in 2006 -almost twice as much! Over the 2I years floe .City of Elk River has been participating in the LMCIT program, it has returned an average di~ridend of 18.1°ro annually. 3} Tlxis is the last year for the City's L,MCIT prexnittms to be impacted by the builders' associations ciain~, There is a premium surcharge of approximately $26,700 in the Municipal Liability premium and another ~ 3,600 in the Auto Liability prem..ium far a total afjust over $30,000. This matter is considered a "Land use" coverage claim, and is counted twice in the experience rating falula. Thais particular suit was settled successfully, but defense costs were significant and are also included in the farinula. There was also a reductioaa of about 2.6°lo to the experience credit applied to the City's bas,: ~~t-wniiuna for 200$. '1'°`7.- experience bating. pro~;~-am measures