Town's Insurance Cost Jumps By $300,000

The Town Meeting crowd seemed to gasp in unison Tuesday when the Finance Committee chairman announced that the town's budget line for insurance had to be increased by $300,000.

Finance Committee Chairman Michael McClung explained that the town's insurance carrier had dropped Swampscott for making excessive claims, he said.

These claims have included one for the middle school roof and another for the failure at the town pumping station last fall.

The departure of Trident insurance, as of July 1, leaves the town with one carrier, he said.

The change in coverage was cause for the committee to recommend an increase in the proposed insurance spending from $350,000 to $650,000, to make sure the town has adequate funds for insurance premiums in the coming fiscal year.

The additional $300,000 came from the town's Free Money account — its surplus from the current budget year.

The assistant town administrator said the town is trying to find competitive insurance rates for the coming year to stave off having to spend the additional $300,000.

Trident insurance told the town administration about three or four weeks ago that it would no longer cover Swampscott, Assistant Town Administrator Dave Castellarin said on Wednesday.

The recent notice is what prompted the Finance Committee to seek the change at the 11th hour of the budget process.

The increase boosted the total insurance budget to $5,180,000 and the Fiscal 2013 Budget to $57,690,821.

Later in the meeting the bottom line was increased by more than $14,000 after delegates approved funding to reinstate the town nurse's part-time position.

Another attempt to increase the budget failed.

That was a proposal from Selectman Barry Greenfield, who wanted to increase the line item — from $10,000 to $60,000 — for hiring a lobbying firm to seek federal funding on behalf of Swampscott projects. 

Selectmen had brought forth, as part of the 2013 budget, $10,000 in spending to pilot a lobbying effort and see how it panned out.