Potential insurance hikes concern commissioners

Drew Lawson, The Record-Times | Last updated Oct 19, 2023 10:17am0

DAVENPORT — As budget season approaches, potential insurance rate hikes could prove to be a thorn in the side of the Lincoln County Commissioners, who voiced their concern with the possible reality at their regular meeting Monday, Oct. 16.

Commissioner Scott Hutsell said Washington Counties Risk Group could raise rates between 50% and 60%, which could be a $400,000 increase. Later, fellow Commissioner Rob Coffman said the Risk Group confirmed the rates could be as high as 60% via a letter issued Wednesday, Oct. 18.

“So at one point do we say no to them, that we don’t want insurance anymore?” an exasperated Coffman said Monday.

Lincoln County is one of 10 counties that buy inside Washington Counties Risk Group, a property and liability risk pooling program for state counties founded in 1998.

As an example, Hutsell said, the group would be used if a county vehicle was in a car accident.

“The premium for 2023 was almost $1 million,” Hutsell said.

The Risk Group doesn’t provide all the county’s various insurances, but Auditor Chandra Schumacher said it does provide overall umbrella insurance.

Coupled with a 4.5% cost-of-living increase for 2024, and the commissioners will be facing another challenging budget cycle.

“So who are we going to lay off?” Coffman lamented. “This is going to be the death of small counties. The state is making it impossible to do business as a small county.”

Coffman later clarified that he doesn’t anticipate layoffs will happen this year, saying he spoke out of turn in frustration at the commissioner’s meeting.

“I probably shouldn’t have spoken out of turn there,” he said. “I can’t imagine we’re going to be laying anybody off this year.”

But up to a $400,000 or $500,000 increase is nothing to sneeze at, either, he said.

“That’s quite an increase for a small county trying to do business,” he said.