The county of St. Paul is facing mounting pressure to address soaring insurance premiums affecting local organizations, a concern that was candidly expressed by County Reeve Glen Ockerman during a council meeting on August 13.
“It’s crazy and I hope the government would finally do something,” Ockerman stated, reflecting the frustration felt by many community leaders and organizations dealing with rising insurance expenses.
The discussion was sparked by a delegation from the Mallaig Agricultural Society on July 23, during which the organization sought to renegotiate its Community Recreation Agreement with the county. The current agreement, which is set to expire soon, has become increasingly burdensome due to the sharp rise in insurance costs.
In a letter presented to the council, Mallaig Agricultural Society President Daniel Dargis outlined the financial challenges facing the organization, with skyrocketing insurance premiums being a primary concern. The society’s insurance costs include $33,000 for the Mallaig arena, $6,060 for the hall, $24,614 for the curling rink, and $1,167 for liability insurance.
To alleviate some of the financial strain, County CAO Jason Wallsmith proposed a $35,000 donation for 2024 to cover the society’s insurance premiums. Wallsmith assured the council that this contribution could be accommodated within the county’s budget, citing potential year-end surpluses.
Phyllis Corbiere, Director of Corporate Services, noted that while the insurance for the Mallaig arena had decreased following a property re-evaluation, the premiums for the curling rinks had increased. Despite a modest savings of $1,400 in overall premiums, the society remains financially strained. Corbiere also mentioned that the county paid $117,000 in property insurance premiums last year for various community clubs and organizations through its policy with Rural Municipalities of Alberta.
Ockerman expressed his frustration with the rising insurance costs, which are impacting both local ratepayers and the municipalities itself. “We’re not the only ones feeling this, are we?” he asked, highlighting the widespread nature of the issue.
Coun. Louis Dechaine echoed these concerns, pointing out that insurance premiums are affecting every facet, like the Mallaig Church.
The conversation took a turn when Ockerman and Coun. Dale Hedrick discussed the possibility of the county becoming its own insurance provider. Hedrick shared that some facilities have opted to self-insure by setting aside funds in a separate account each year instead of paying premiums to an insurance company.
“Maybe that should be the conversation,” Ockerman suggested, indicating that the county might explore self-insurance as a potential solution given the unrelenting rise in premiums.
Returning to the initial agenda item, the council approved a one-time, unbudgeted donation of $35,000 to the Mallaig Agricultural Society for 2024. The council also decided to revisit the Community Recreation Agreement during a future strategic planning meeting to consider long-term solutions.
