CONSENT AGENDA

TR14417 - A Resolution of the City Commission of the City of Tamarac, Florida authorizing the renewal of General Liability, Automobile Liability, Automobile Physical Damage, Workers' Compensation, and Property Lines of coverage including any endorsements with the Florida Municipal Insurance Trust (FMIT) for a one (1) year period beginning October 1, 2026, at a cost of $1,627,060 and payment of any increase resulting from the annual premium audit and/or additions to the property schedule; providing for conflicts; providing for severability; and providing for an effective date.

It is recommended that the City renew its property and casualty insurance FY2027 with the Florida Municipal Insurance Trust (FMIT)

The City has maintained a relationship with FMIT for more than 28 years. FMIT, administered by the Florida League of Cities, provides insurance and risk-management services designed specifically for local governments, including property, general/professional liability, automobile, workers' compensation and cyber coverage.

The FY2027 renewal continues with the City's principal coverage structure while reflecting updated property values, payroll and fleet exposures.

Benefits to the City:

FMIT has provided the City with stable, municipal-focused coverage for more than 28 years. As a local-government risk-sharing pool, FMIT operates on a non-assessable basis, limiting the City's obligation to the premium paid rather than exposing members to additional assessments if pool losses exceed available funds.

During the renewal process, it was noted that continued favorable property rates and the City's strong 0.54 workers' compensation experience modification factor were quite favorable while identifying automobile coverage as the more challenging statewide line as vehicle counts, values and repair costs increase.

The final FY2027 renewal is consistent with that outlook, producing an overall premium reduction while maintaining the City's principal coverage structure. 

FMIT Program Pricing for FY2027:

The FY2027 renewal is favorable overall. The total premium decreases approximately 12%, while the City maintains its principal coverage structure. Property and General/Professional Liability produce the largest savings.

The FY2027 quote separates Automobile Liability ($138,818) and Automobile Physical Damage ($54,903). They are combined in the comparison above because the FY2026 memo reported the automobile line on a combined basis.

General/Professional Liability ($25,000 deductible):

The FY2027 premium is $310,798, a decrease of approximately 21%. The coverage limit remains $5,000,000 with a $25,000 deductible.

Automobile Liability and Automobile Physical Damage:

Automobile Liability is $138,818 and Automobile Physical Damage is $54,903, for a combined FY2027 premium of $193,721. The broker reports Automobile Liability increasing approximately 2% and Physical Damage approximately 23%. The City also added roughly 28 vehicles year over year, which contributes to the overall automobile increase.

Property Insurance:

Property decreases to $862,469, approximately 15% below FY2026, even though insured values increased about 16% following the asset survey. The renewal maintains a $100,000,000 limit, $50,000 deductible and 5% named-storm deductible. This reflects the continued favorable FMIT property-rate environment.

Workers' Compensation ($25,000 deductible):

Workers' Compensation decreases to $245,545, approximately 4% below FY2026. The City's experience modification factor remains favorable at 0.54. The renewal is based on total payroll of $40,365,590, an increase of approximately 5%.

Cyber Liability:

Cyber Liability remains $14,527, with a $2,000,000 limit and a $25,000 deductible.

Additional FMIT Benefits:

Beyond the insurance limits themselves, FMIT provides several services that have practical value to the City's risk-management program:

•    Turn-key catastrophe assessment and recovery support, including property-mitigation assistance for emergency stabilization following a storm or major event.
•    Quarterly safety grants, loss-control assistance and employee safety training. Prior renewal records document more than $50,000 in FMIT safety grants received by the City over several years.
•    Property-mitigation resources have also been used directly by the City; following Hurricane Nicole, FMIT covered the documented repair expense at Fire Station 36.
•    Claims and legal-defense support tailored to municipal exposures, including defense expenses paid separately from the applicable per-claim liability limit.

Premium History:

The following chart reflects the most recent ten fiscal years of FMIT premium history. Premiums vary with market conditions, reinsurance costs, property values, payroll, fleet changes and the City's loss experience.  (Please see the attached memo that includes the chart).

Annual Premium Audits:

FMIT conducts an annual premium audit to reconcile changes in payroll, vehicles and other scheduled exposures during the policy year. The most recent completed results documented in the prior renewal record are:

•    FY20/21 - Balance owed $26,639.00
•    FY21/22 - Balance owed $20,570.00
•    FY22/23 - Balance refunded $(4,094.00)
•    FY23/24 - Balance owed $23,225.00
•    FY24/25 - Balance owed $33,092.00
•    FY25/26 - Policy year remains open through September 30, 2026; a final audit balance is not yet available as of the date of this memorandum.

Claims History:

The FY2027 renewal quote does not include updated FY2026 claim counts. The chart below therefore reflects the most recent five-year claims history available in the prior renewal record. (Please see the attached memo that includes the chart).

Conclusion:

The FY2027 renewal is favorable. Staff recommends renewal of the City's Property, General/Professional Liability, Automobile Liability, Automobile Physical Damage, Workers' Compensation and Cyber Liability coverages with FMIT for a total net premium of $1,627,060. Using the FY2026 premium documented in the prior renewal memo, this represents a decrease of $231,135, or approximately 12.4%.

Florida Municipal Insurance Trust (FMIT) FY2027 Insurance Coverage Renewal