ST. PAUL – “It’s crazy and I hope the government would finally do something,” County of St. Paul Reeve Glen Ockerman stated bluntly during a recent discussion about increased insurance costs for local organizations.
The discussion took place at a council meeting held on Aug. 13 when council addressed the issue of the Mallaig Agricultural Society requesting funding to help with insurance costs.
During a delegation on July 23, the ag society sought to renegotiate its Community Recreation Agreement with the County of St. Paul, which is set to expire soon.
In a letter attached to the July 23 agenda, Daniel Dargis, president of the Mallaig Agricultural Society, said the organization is struggling through financially trying times and that “we face significant challenges that necessitate a reconsideration of the terms outlined in the current agreement.”
The escalating cost of insurance coverage was among the foremost causes of the increased fiscal challenges faced by the organization, according to Dargis.
Council directed administration to provide a cash contribution recommendation for 2024.
On Aug. 13, presenting the item, CAO Jason Wallsmith said an additional $35,000 donation for 2024 for the Society would help cover the organization’s insurance premiums for the year.
As for the question of, “Could we fit that into our budget? The short answer is yes,” said Wallsmith, explaining that the County is able to cover the additional funding through potential surpluses at the end of the fiscal year.
Wallsmith said the insurance premiums the society must pay are $33,000 for the Mallaig arena, $6,060 for the hall, $24,614 for the curling rink, and $1,167 for liability insurance.
Phyllis Corbiere, director of corporate services, said the Society’s insurance for the arena decreased, while the insurance for the curling rink increased, following a re-evaluation of the properties’ values.
In a follow-up with Lakeland This Week, Corbiere said the society saved $1,400 in insurance premiums for the year, but the amount is not enough to offset the costs.
Corbiere also noted that the County paid $117,000 last year in property insurance premiums for community clubs and organizations under the County’s insurance policy with Rural Municipalities of Alberta.
Ockerman called the increasing insurance premiums that ratepayers and even the municipality must pay as being “crazy.”
He said the County must try to make enough money to pay insurance for its facilities, adding it could probably build other needed facilities with the amount of insurance premiums it is paying.
“We’re not the only ones feeling this, are we?” he questioned.
Coun. Louis Dechaine said the issue with insurance premiums affects “every facet... like the church in Mallaig.”
“Can we start being our own insurance company?” asked Ockerman.
In response, Coun. Dale Hedrick said, “You know, there are some facilities - I’ve talked to people - but that’s what they’ve been doing... instead of paying an insurance company, they put it in a separate account every year and they’re just keeping it.”
“Maybe that should be the conversation,” responded Ockerman, that perhaps the County could be its own underwriter, “because this insurance isn’t backing off.”
Council then shifted back to the original discussion, with Coun. Maxine Fodness making a motion to approve a one-time unbudgeted donation of $35,000 to the Mallaig Ag Society for 2024, and that council will be discussing how to proceed with Community Recreation Agreement at a future strategic planning meeting.
In a follow-up with Lakeland This Week, Ockerman said the County will try to speak with provincial ministers at the fall Rural Municipalities of Alberta Conventions to see if there are ways the province can help keep community facilities operational.
