City to pay insurance bill

Colfax will pay a share of makeup funds under a plan from Cities Insurance Association of Washington, Ephrata, to comply with state Office of Financial Management requests. The plan involves retroactive assessments to make up a funding gap between 2002-2007.

Mayor Norma Becker explained at the March 1 city council session that the assessment is based on reserves the insurance pool has been ordered to have on hand. The insurance pool had been able to pay off all claims.

Beginning in August, members of the insurance pool will be required to pay an additional $197,242 per year over the next five years. Total amount of the assessment has been estimated at $986,214.

A report to CIAW said the group’s board had submitted two plans to the OFM which did not include retro assessments, but both were rejected and the state agency insisted the retro plan was the only method of collection it will accept.

The amount of the assessment will be divided among members of the insurance pool according to population. Colfax at this time does not know how much will be added to its insurance bill.