83-055 - WA Cities Insurance Authority (WCIA)

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(d) The cost allocation plan and formula adopted by the Board shall provide for an adjustment in the Member Cities' premiums at the end of the first year of operation, and annually thereafter, in order to produce a premium for the following year for each City that is equal to the sum of the following three items: 1) That amount of losses borne individually by the City, as determined by the Board; and 2) The City's share of pooled losses and other expenses, as determined by the Board; and 3) The City's contribution to a catastrophe fund and reserves for incurred but not reported losses, and amount of such fund and reserves to be determined by the Board. (e) The Board may make such premium adjustments retrospective to the prior year and each Member City shall pay any additional premium required by such retrospective adjustment. (f) The Board shall adopt criteria for determining each City's annual share of pooled losses, expenses and contribution to a catastrophe fund which may include the City's payroll as compared to the total payroll of all Member Cities, the City's individual loss experience, and such other criteria as the Board may determine to be relevant. (g) The annual readjustment of the amount of premium shall be made and notices for readjusted premium amounts and the next year's premiums shall be distributed at least ninety (90) days prior to the close of each fiscal year. This premium amount, together with any readjusted amount due under paragraph (c) above, shall be due and payable on or before fifteen (15) days after the beginning of the fiscal year. (h) Inasmuch as some Member Cities may experience an unusual frequency of losses during a single fiscal year, which could increase their final premium substantially above the prepaid premium for that year and cause budgetary problems, the Board may provide for payment of a portion of such additional premium to be made over a period of time, not to exceed three years, plus reasonable interest. ARTICLE 14 Accounts and Records 9 (a) Annual Budget. The Authority shall annually adopt an operating budget, pursuant to Article 8(c) of this Agreement.