Insurance Cost For School Drops, First Since 2011

Insurance Cost For School Drops, First Since 2011

By David Howell

Editor

WATER VALLEY – The cost to insure Water Valley School District in the coming year will be $89,807, marking the first premium decrease in five years. School trustees unanimously approved the policy during the June 27 meeting after learning the premium would decrease $18,193. 

The decrease follows what the school district’s insurance agent described as an “uneventful year.”

“Nothing bad during the past year, thank goodness. We like that,” Steve Brown of Wellington Associates told trustees. The insurance cost peaked during the 2015-16 school year at a cost of $108,000 after five years of increases starting in 2011 when the coverage cost $57,000. The policy covers the district’s automobiles, property, general liability, educator’s liability and cyber crime. The policy has a $25,000 deductible on property and $1,000 deductible on vehicles.

Wellington also provided a second quote from the Mississippi School Board Association’s insurance pool at a cost of $67,000, but reminded trustees this was actually a contribution and if a catastrophic event occurred at one of the schools covered by the pool occurred, the district could be required to add more money to the insurance pool.

“You made the right decision,” Wellington told trustees after they selected the traditional coverage.

Trustee Pierce Epes cited the big fluctuation in the quote for insurance pool, after the quote last year for the same coverage was $118,000.

“If their premium can go from $118,000 last year to $67,000 this year, it can do the exact opposite or worse next year. Then we would be on the hook for it,” Epes said, before making the motion to accept the fully-insured traditional policy.

Wellington said the coverage is a combination of policies from Argonaut Insur-ance as the general liability carrier and Hartford Insurance for property coverage.

Other business handled at the meeting included:

• Approved a five percent pay increase for the district’s 11 bus drivers after transportation director Craig King made the recommendation. District Business Manager Randy Goodwin explained that the bus shop is operating with one mechanic instead of two, and King recommended the savings be used for the drivers. King also received a five percent raise after Superintendent Dr. Michael McInnis recommended the increase.

• Approved a $70,160.50 bill from the Computer Doctor for 25 Chromebook computers after learning the Water Valley annual staff under the leadership of Joanne King had donated the money.

“That’s a big deal, that is the students giving back,” Board Chairman Taylor Trusty noted. 

Goodwin also provided an explanation of other big expenses on the claims docket including $4,935 to send two students to the Scott Center in Oxford. The center provides services for severely mentally and physically challenged students.

Goodwin also said bills totaling $3,495 from Sartain’s True Value were for the purchase of air conditioners at the elementary school. Goodwin said the price from Sartains was half the state contract price for air conditioners. 

Goodwin also said the district spent $6,593 with Williams Equipment to purchase pipe to fix a drainage issue at the football field.

“We are getting labor donated for this project,” Goodwin added. 

• Goodwin also provided a financial update as of May 31 included $1,731,434 cash on hand for the district maintenance fund and $1,815,945 in the fund balance.  Goodwin said the estimated anticipated cash on hand at the end of the school’s fiscal year on June 30 would be $1,288,680.

• Approved equipment disposal for obsolete or non-working equipment.

• Approved the claims docket.