ACTION REQUESTED:
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Communication from the City Manager and Director of Human Resources with a Request for the Following:
A. APPROVE Existing Property Insurance Coverages with Liberty Mutual Insurance through ALLIANT INSURANCE SERVICES INC., at a One-Year Cost of $268,156.00, Inclusive of Fees; and,
B. ADOPT an ORDINANCE Amending the City of Peoria 2022-2023 BIENNIAL BUDGET Relating to the Payment of Insurance Premiums, in the Amount of $213,317.00.
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BACKGROUND: The current renewal of our property coverage is a 14% increase from our expiring premium. This increase is due to a 5.4% increase in our property values and an 8.5% market increase. The commercial industry as a whole is seeing market increases in the range of 5-15% on average, so 8.5% is a reasonable increase by market standards. However, the current state of the liability insurance market is still very unstable. This is resulting in carriers electing to leave the public sector arena. The impact of COVID-19, inflation, increased plaintiff awards and settlements, and ineffective tort caps has made public sector insurance one of the least desirable markets in the industry. All these factors have driven the cost of insurance up which resulted in a significant increase to our liability renewals last month. These additional costs exhausted the current budget leaving a balance of roughly $55,000.
FINANCIAL IMPACT: A additional $213,317 is needed to balance the budget and to pay the current premium renewal.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: The 2022-2033 BIENNIAL BUDGET will be amended to reflect the new budget amount of $813,317
IMPACT IF DENIED: The 2022-2023 BIENNIAL BUDGET will not be amended leaving the City short on funds to pay the current premium renewal.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: Alliant Insurance Services 02562-220630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Fi...
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