HomeMy WebLinkAboutRES2024-035 AMLJIA BudgetSponsored by: Jusino
I CITY OF SEWARD, ALASKA
RESOLUTION 2024-035
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE
FUNDS FOR INCREASED PREMIUM COSTS OF PROPERTY,
CASUALTY, WORKERS’ COMPENSATION, AND OTHER GENERAL
INSURANCE PAID TO THE ALASKA MUNICIPAL LEAGUE JOINT
INSURANCE ASSOCIATION FOR THE PERIOD JULY 1, 2024,
THROUGH DECEMBER 31, 2024
WHEREAS, the City of Seward is a member of the Alaska Municipal League Joint
Insurance Association (AMLJIA), a governmental insurance pool established by the Alaska
Municipal League; and
WHEREAS, the AMLJIA provides the City coverage for property, including building,
contents, boiler and machinery, automobiles, mobile equipment and data processing equipment;
casualty, including general liability, public officials and employee’s liability, law enforcement
professional liability, auto liability, and employee benefits liability, workers' compensation,
including employer’s liability; and commercial blanket bond. The City maintains supplemental
marine insurance and firefighters group accident coverage with insurance companies placed
through the AMLJIA; and
WHEREAS, AMLJIA is a public entity nonprofit corporation established under AS2L76
by the Alaska Municipal League to provide risk management services for Alaska municipalities,
cities, and borough school districts and regional edueatibli attendance areas; and risk pool
organized to share risks among its members; and
I
WHEREAS, the national insurance market has been gradually tightening due to higher
losses, inflation, and changes in the investment market; and
WHEREAS, the increase in workers' compensation premiums is primarily due to the rising
healthcare costs both nationally and in Alaska, as well as an increase in employee claims. These
factors have led to a significant increase in the city's insurance expenses; and
WHEREAS, the city was expecting the increasing cost of the Worker's Compensation
liability to be reflected in the FY 24 budget. Therefore, the general liability needs to be adjusted
by increasing the expenditure on the insurance expense line by $60,543.13.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section I. The City Council hereby authorizes the City Manager to appropriate funds for
increased premium costs paid to the Alaska Municipal League Joint Insurance AssociationI
CITY OF SEWARD, ALASKA
RESOLUTION 2024-035
Page 2 of 2 I
Section 2. Funding in the amount of $60,543.13 is hereby transferred and appropriated
from the unassigned account to the various departmental insurance budget expenditure line items,
account 7004, as follows:
$32,193.64General Fund
$14,849.02Harbor Enterprise Fund
$1,934.24SMIC Enterprise Fund
$208.83Parking Enterprise Fund
$7,927.64Electric Utility Enterprise Eund
$3,429.77Water/ Sewer Utility Enterprise Fund
$60,543.13Total appropriation
ISection 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8'*’ of
July 2024.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
Calhoon, Barnwell, Wells, Crites, Finch, Osenga, McClure
None
None
None
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Kris Peck
City Clerk I
(City Seal)
City Council Agenda Statement
Meeting Date: July 8, 2024
To: City Council
Through: Kat Sorensen, City Manager
From: Sully Jusino, Finance Director
Subject: Resolution 2024-035: Authorizing the City Manager to Appropriate Funds
For Increased Premium Costs of Property, Casualty, Workers’
Compensation, and Other General Insurance Paid to the Alaska Municipal
League Joint Insurance Association For the Period July 1, 2024, through
December 31, 2024
Background and justification:
The City of Seward is a member of the Alaska Municipal League Joint Insurance Association
(AMLJIA), a governmental insurance pool established by the Alaska Municipal League. The
AMLJIA provides the City coverage for property, including building, contents, boiler and
machinery, automobiles, mobile equipment, and data processing equipment; casualty, including
general liability, public officials and employee’s liability, law enforcement professional liability,
auto liability, and employee benefits liability, workers' compensation, including employers’
liability; and commercial blanket bond. The City maintains supplemental marine insurance and
firefighter's group accident coverage with insurance companies placed through the AMLJIA.
The AMLJIA is a public entity nonprofit corporation established under AS21.76 by the Alaska
Municipal League to provide risk management services for Alaska municipalities, cities, and
borough school districts and regional education attendance areas; and risk pool organized to share
risks among its members and the national insurance market has been gradually tightening due to
higher losses, inflation, and changes in the investment market.
The premium increase for workers' compensation is primarily due to increased healthcare costs
nationwide and, in Alaska, the increase in employees' claims.
The city expected the increasing Worker's Compensation liability cost to be reflected in the FY24
budget. Therefore, the general liability needs to be adjusted by increasing the expenditure on the
insurance expense line by $60,543.13.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ $60,543.13
This legislation ():
Creates revenue in the amount of: $
Creates expenditure in amount of: $ $60,543.13
Creates a savings in the amount of: $
Has no fiscal impact
Funds are ():
Budgeted Line item(s):
Not budgeted
Not applicable
Fund Balance Information
Affected Fund ():
General SMIC Electric Wastewater
Boat Harbor Parking Water Healthcare
Motor Pool Other All Funds
Note: amounts are unaudited
Available Fund Balance $
Finance Director Signature:
Attorney Review
Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
Adopt Resolution
Other: