HomeMy WebLinkAboutDocumentation_Regular_Tab 12_4/08/2021Agenda Item #12.
Regular Council
STAFF MEMO '
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Meeting: Regular Council -Apr 08 2021
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
RESOLUTION NO. 20-21, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, APPROVING INTERDEPARTMENTAL TRANSFERS WITHIN THE
GENERAL FUND #001; BUILDING FUND #101 AND UTILITY FUND # 401 FOR FISCAL YEAR
2020/2021 TO FUND INCREASED INSURANCE PREMIUMS FROM THE FLORIDA MUNICIPAL
INSURANCE TRUST; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
After the FY20/21 budget was transmitted, staff received updated information from its insurance broker,
Gehring Group, regarding premium pricing for its various insurance coverages, i.e., property, inland marine,
general liability, public official liability and employment, law enforcement liability, auto and workers
compensation insurance. The FY2020-21 premium renewals returned a 4.17% increase over the previous plan
year due to the following reasons:
1. Workers Compensation — Payroll estimates for FY20/21 was approximately $300,000 lower than the
expiring policy. This change was due to staff reduction mainly related to the 911 call center's move to
NorthComm. The Village's experience mod rate also fell from 1.04 to .91, creating a credit of 7% to the
Village's premium factor. These reductions significantly helped to offset increases to the property and
general liability coverages.
2. General Liability - This category saw a 12% increase. Across the industry, the primary driver of
significant premium increases is currently related to anticipated COVID-19 lawsuits. The Florida
Municipal Insurance Trust (FMIT) has resisted passing on extreme increases for the upcoming policy
term. It is yet to be seen how liability premiums will be impacted over the next year. Additionally, law
enforcement liability continues to experience an uptick in premiums across agencies.
3. Property & Inland Marine — This category saw the largest increase due mainly to a 16 % increase in
property values. Over the past year, the Village added over $4 Million to its building values, which
included increased values for Village Hall, Public safety, and additional IT equipment. All inland marine
items over $15,,000 are now required to be itemized and this category which includes the bucket truck,
loaders, excavators and generators are now valued at a total of $1,.923,.177. These circumstances, in
addition to what the brokers refer to as a "hardening" insurance market, led to the increases.
The FY20/21 total renewal premium of $577,763 represents an increase of $23,,122 over the premium of
$554,,641 from the previous year. This increase will be covered by budgetary savings from the FY20/21
debt service payments for the SAN computer project. The total FY21 budgetary savings for this project
amounted to $73,.050.
This document and any attachments may be reproduced upon request in an alternative format by completing
our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443.
Page 119 of 406
Agenda Item #12.
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Staff recommends approval of the interdepartmental budget transfers, as prescribed in the attached
Exhibit A.
BUDGET AMENDMENT RESOLUTION INSURANCE 21 ADA
Exhibit A Budget Transfer Request insurance 2021-1
Insurance premiums 2021
Page 120 of 406
Agenda Item #12.
RESOLUTION 20-21
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, APPROVING INTERDEPARTMENTAL
TRANSFERS WITHIN THE GENERAL FUND #001; BUILDING FUND
#101 AND UTILITY FUND # 401 FOR FISCAL YEAR 2020/2021 TO
FUND INCREASED INSURANCE PREMIUMS FROM THE FLORIDA
MUNICIPAL INSURANCE TRUST; PROVIDING AN EFFECTIVE DATE;
AND FOR OTHER PURPOSES.
WHEREAS, the Fiscal Year 2020/2021 Budget currently includes funding for
general liability, workers compensation, auto liability, auto physical damage and
property insurance premiums; and
WHEREAS, the Fiscal Year 2020/21 insurance premium renewals returned a
4.17% ($23, 122) increase over the previous plan year; and
WHEREAS, staff is requesting interdepartmental transfers between several
budgetary accounts to cover the above premium increase.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: Resolution 20-21, approving interdepartmental transfers and
amended budgets for the General Fund #001, Building Fund #101 and Utility Fund #401
for Fiscal Year 2020/2021, as specified in the attached "Exhibit A."
Section 2: This Resolution shall become effective immediately upon passage.
Page 121 of 406
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