District projects higher insurance and audit costs; potential firearm-insurance rider discussed
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Summary
The district's business official reported an estimated 6% increase in liability insurance (~$15,000), a 10% rise in wind-and-hail rider costs (~$6,000), and an auditor quote of about $32,500 for this year's audit. Insurer discussions included a possible $3,500-per-carrier liability rider for staff who carry firearms, though figures are not final.
The board received preliminary budget-related cost projections from Business Manager Angie, who reported that the district expects an increase in insurance and audit costs for the coming year.
Angie told trustees the district's liability insurance is expected to increase by roughly 6%, which she estimated would be about $15,000. The wind-and-hail rider the district purchased last year is expected to rise roughly 10% to about $6,000. Angie also said the insurer was discussing a potential rider that would exclude firearm claims from the general liability policy and offer a separate optional rider for staff who carry. The insurer's preliminary estimate for that rider was about $3,500 per staff member who chooses to carry; Angie emphasized those figures are preliminary and “none of that is in concrete.”
On auditing, Angie reported that Paul from Riley & Company provided a quote of roughly $32,500 for this year's district financial audit. She said local districts generally use Riley & Company and that options are limited in the region.
Board members asked for clarification and indicated the figures will be included in forthcoming budget materials; no final budget votes were taken at the meeting. Angie added a small piece of good news: workers' compensation rates had decreased by about 0.09 percentage points.
Ending: Trustees were alerted to rising insurance and audit costs and asked staff to include updated estimates in future budget hearings and the district's final budget materials.