Finance Committee Agenda and Packet 2023 02 16

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City Council Finance Committee Meeting Minutes January 23, 2023 Page 2 of 4 Review of 2023 Work Program The Interim Finance director presented the 2023 Work Program report and recommended that enterprise dashboards be provided to the Finance Committee twice a year. A financial and general impact of the fire will be provided monthly. The 2023 Major Initiatives were also noted. The new City Finance Director introduced himself and gave a brief background of his experience. Questions from the Committee: Councilmember Leh asked if the City has changed anything on the work plan based on the Council decisions last week? The Work Program report wasn't updated based on the Council meeting last week. The City Manager noted that staff is working with the Board and Commission liaisons, the Deputy City Manager is taking the lead on the council work plan and the CMO is looking at alignment with these plans along with Executive Leadership Team and City department work plans. Property, Casualty, and Liability Insurance Review Risk Management Specialist Burgess presented the insurance review. 2023 coverage has been renewed with Travelers and the Bond renewal includes all assets. This process was started earlier this year and many insurers declined to quote. The firms that provided quotes were higher than what Travelers offered to provide. Costs are increasing by 16.6% this year. The marketplace comparison was attached to the packet provided to the committee. The Workers Comp was renewed with Pinnacle. Questions from the Committee: Councilmember Dickinson asked about the 2021 claim which was the Marshall Fire. He also asked if Council and finance committee has any part in determining who to continue with and they do not because insurance renewal is an administrative process. It was noted that we're under budget with the increase. Councilmember Leh asked why the City budgeted for a 25% increase for this year. The Risk Management Specialist informed the committee that in 2022 risk management associations were talking about 30% increases this year, which informed the City's decision to budget for a 25% increase. Councilmember Leh asked about the defense costs for the lawsuit by Rocky Mountain Gun Owners — how was that considered in determining insurance coverage. The Deputy City Manager noted we did research on peer orgs and their coverage and our coverage was similar to peer communities. For example, the Town of Superior insurance company is providing that entity's defense. We were able to convince Travelers to interpret the policy in the same way. We don't have a specific indication if future cases will have a different process. Preliminary 2024 Budget Calendar: 4/57