City creates account for deductibles

WILLIAMSBURG — During its June 24 meeting, the Williamsburg City Council approved a resolution establishing a savings account with Farmers Trust and Savings Bank to cover insurance deductibles.

The funds come from the Insurance Expense Account.

During a March 25 city council meeting, Dan Lillis gave the Council options for insurance coverage due to a rise in premiums. The City Council voted to stay EMC Insurance but to change the deductible to $50,000 per claim.

To be prepared for the higher deductibles, the city is setting up a savings account.

The deductible for wind and hail damage is 10% of the value of the building, said City Manager Aaron Sandersfeld. Valuations are established by the insurance company, he said.

The Rec Center is valued at $9.7 million and the water plant at $8 million. The City has to “start planning for a rainy day,” said Sandersfeld.

“[It’s] something we’ll have to add as a budget item next year,” Sandersfeld said.

Iowa is in the bottom 10% in population but in the top 4% for insurance claims because of wind events, said Sandersfeld.

The city has $9,238 in insurance funds in fiscal year 24 and will use that money to establish a savings account with Farmers Trust and Savings Bank for deductibles, the resolution says.