Council opts for compensating tax rate

‘Trick or Treat’ set for Saturday October 31, 6-8 pm. 

LOUISA, Ky.– After a lengthy discussion on the city’s lack of enough insurance coverage at the September regular meeting, the Louisa City Council last night decided to change insurance carriers which Mayor Harold Slone says was “the only prudent choice” for the city.

Mayor Slone, a former insurance agent himself was contacted by Jeremy D. Blair, a Lexington agent who said he was born at Blaine, to explain what he perceives to be a “serious problem” in the form of city insurance coverage.

The city had been covered by Scottsdale Insurance, Inc. through local agent Joe A. Young Insurance Company and both Debbie Cordle from Young’s and Blair agreed the city was grossly underinsured. Blair said at that meeting the city presently has approximately $13 million in uninsured property. Ms. Cordle said the reason the city was underinsured was they had always had a lack of funding available for the insurance so they got as much as they could.

“I hate to say it but if something happened like did in Johnson County or in West Liberty a few years ago you would really be in trouble,” Blair told the council.

Add to that a problem with the city’s ISO fire rating. Chief Eddie Preston said the proper amount of insurance coverage is critical in obtaining a Class 4 rating instead of the 5 the city has had for some time. He said the 4 rating would save property owners quite a bit on their insurance premiums. The ISO inspectors are supposed to be here Oct. 8 so the insurance had to be fixed before that date.

Slone said the city saved money and got almost three times as much insurance with the new deal.

“We increased the city’s insurance coverage from $8.1 million dollars to $21 million by switching carriers,” Slone, who is attending a Ky. League of Cities conference this week, said via email today. And according to the figures Slone provided, the city will save $22,000 per year on the premiums.

“Apparently due to several factors like previous claims and financial strains this was the best the city could do over the past few years, but now, thank goodness, we are in a better place and both of the agents were able to produce better prices for more coverage this time,” Mayor Slone said. “ Council sought to take the lowest bid that provided the most coverage for the money this year then review it again.”  

Blair had told the council that he represents the largest company in Kentucky and that they have also begun insuring Paintsville and other cities in the region much more of late.

The quotes were: ( rounded to 1000)

1. Scottsdale (existing through Young’s) $8.1 million in coverage – $90,000

2. Ky League of Cities – $8.1 Million in coverage $75,000, $16.2 Million in coverage $85,000, $24 Million in coverage $90,000

3. Wright Casualty Insurance – $21 million in coverage for $65,000.

Council voted unanimously to accept the low quote from Wright Casualty, which is Blair’s company.

In other action the city took the state’s Compensating rate on taxes which will reduce the rate from .236 to .235. The move will mean that property taxes should remain the same as last year.

Council voted unanimously to accept the low quote from Wright Casualty, which is represented by Blair’s company.

In other action the city took the state’s Compensating rate on taxes which will reduce the rate from .236 to .235. The move will mean that property taxes should remain about the same as last year, Slone said.

Council also set Trick or Treat for Saturday night, October 31, 6-8 pm.