FY 18 Annual Report

Property Insurance CITY OF SPENCER, IOWA

2018

Departmental Highlights

This fund accounts for the City's Property and Liability Insurance Premiums. Similar to the funds established for Group Health, each contributing fund pays their portion of the Insurance Premium into this fund and then the Property Insurance fund is responsible for the payment of the insurance premium. This was done to better account for the property tax levy the City utilizes for a portion of the Insurance premiums to ensure that all of that levy is utilized for insurance premiums. Before the creation of this fund, the levy and individual fund payments were deposited into the General Fund and paid out of there. The City purchases its main property and liability policy through the ICAP program. ICAP is a group self-insurance program for Iowa public entities. The diverse membership of the Pool includes Iowa cities, counties, townships, 28E organizations, emergency management agencies, empowerment boards, county fairs, transit authorities and more. ICAP was founded in 1986 and provides property and casualty coverage to nearly 800 Iowa public entities. The City of Spencer has been a member since April 2014. The City accounts for the full cost of premiums from this fund, including contributions from the enterprise operations. Those operations transfer money into the Property Insurance fund to cover their respective portion of premiums. The City also purchases several departmental specific liability polices, mainly for the airport and landfill, however those policies are expensed directly form those operational funds.

Budget Review

Total expenditures for property and liability insurance were $184,595.13 in FY 18 , a decrease of $21,683.07 (-10.51%) compared to FY 17. The decrease came form a decrease in premiums for property insurance coverage. The City performed a detailed analysis of the property that was being insured along with the associated value. Several property locations that had been insured were removed after determining that the City would not likely replace them or the value was not worth including. Overall the city expended 95.29% of the budget for property insurance coverage.

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