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Ferndale switches insurers to save $100,000 annually

RALPH SCHWARTZ; THE BELLINGHAM HERALD
Published: Jan. 25, 2013 at 2:02 p.m. PST — Updated: Jan. 25, 2013 at 2:07 p.m. PST
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FERNDALE - The city will save about $100,000 a year starting in 2014 after changing risk-management insurance providers. The City Council voted unanimously on Tuesday, Jan. 22, to make the switch.

Property damage and lawsuit claims will be covered beginning next year by the Washington Cities Insurance Authority, which is charging about $100,000 less than Ferndale's current insurance service, the Risk Management Service Agency run by the Association of Washington Cities.

Council member Jon Mutchler, who credits Mayor Gary Jensen for taking the initiative to look for the cost savings, said the insurance switch will come with no reduction in service.

"We would have been thrilled with a $10,000 savings," Mutchler said.

The city had a budget surplus smaller than $100,000 at the end of last year, as council was preparing the 2013 budget. The money was used to pay part of the salary of an additional police officer and fund nonprofits that serve seniors, and low-income and homeless people.

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