Budget ’24: The city’s $350,000 insurance purchase will result in a 0.99% tax increase
Brahmastra Budget: Result In A 0.99% Tax Increase.
Spending close to $350,000 on insurance coverage upgrades will help city hall safeguard its digital and physical assets against cyber attacks and fires.
In a unanimous vote at the most recent budget meeting, the city council approved the finance department’s hiring of a consultant for $180,000 to provide property valuation services, which will assess buildings and make sure the right insurance is applied to those locations.
This is a one-time cost; thereafter, a yearly update will cost $6,000.
Additionally, the department was given permission by the council to purchase cyber insurance for $169,600, which would cover $3 million.
Totalling $349,600, these two items will increase by 0.99 percentage points to the anticipated 2024 increase in municipal taxes.
Building insurance:
According to a budget report, property insurance values need to be updated to ensure that claims for buildings covered by coverage types other than guaranteed replacement cost have enough coverage.
Risks associated with structures with inadequate values would be reduced by using professional valuation services.
The report went on to say that the city has property insurance on 163 buildings, and the locations fit into three groups.
This comprises actual cash value (ACV), of which there are 29 structures, guaranteed replacement cost (GRC), of which there are 26 buildings, and replacement cost (RC), of which there are 108 venues.
In the event of a disaster, insured buildings under GRC, the highest coverage, would be fully funded and rebuilt in exactly the same manner.
If RC (medium coverage) applied, these structures would be replaced.
up to the liability limit’s amount. The city becomes a co-insurer and shares in the loss if it does not insure up to 90% of the venue’s value.
Depreciation would be subtracted from the payout in the case of a destroyed building under ACV, the lowest coverage.
According to the report, city hall is worried that if it files a claim on a non-GRC-protected building, it might be exposed to risks that would limit its capacity to replace or repair the structure.
The buildings that fall under the RC category and are scheduled for reclassification are the most important to revalue.
Finance director Brian Acker informed council, “A guaranteed replacement cost building will be valued, but if it drops off the list, the insurer no longer values it and hikes rates.” “We act as
possess a sizeable number of buildings that are under insured due to their low value. There might be a serious problem there.
Because of the risks associated with older structures, providers do not want them in the GRC level, so they are the ones who move the buildings into lower categories, he continued.
However, older buildings should be safeguarded for five to seven years by having their valuations updated.
The finance director also stated that although the $3 million value is a cap because insurers wish to minimise their losses, the city is covered completely by insurance. City Hall also pays $600,000 a year for insurance premiums.
cyber insurance:
City Hall lacks, which is troubling given the regular reports of businesses, including municipalities, falling victim to a cyber attack
He continued, “The administration was unable to obtain such insurance during the last few years due to the significant changes in requirements.”
But if they got coverage, a qualified team would fix the breach in addition to providing them with financial security.
“It’s just a matter of time until it occurs to us,” Acker continued.
All city employees, according to IT director Wade McKay, are trained to be on the lookout for phishing emails and scams, with education being the primary focus. Such training is necessary for providers before they will even offer coverage.
When logging into online accounts, the department also suggests using multi factor authentication as an additional security measure.
Councilwoman Crystal Froese supported the cyber insurance, citing global occurrences as well as the virtual assault on Saskatchewan Polytechnic that occurred closer to home.
a few years back. She pointed out that the organisation keeps quiet about how the incident occurred and the cost of fixing it.
It is imperative in my opinion that we have adequate insurance. Insurance-wise, we’re in serious trouble if a building collapses’, she continued.
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