Watertown City Council Approves $1.18M Insurance Renewal With Rates Nearly Flat for 2026–27
- Steve Jurrens
- 7 days ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council voted unanimously on Monday night to approve the city’s 2026–2027 municipal liability and property insurance renewal, keeping rates virtually flat despite rising property valuations across municipal facilities.
The city will continue its coverage through the South Dakota Public Assurance Alliance (SDPAA), a statewide risk-sharing pool that Watertown has belonged to since 1991. The total renewal premium comes to $1,185,133.46—an overall increase of just $1,408 (0.12%) over the previous year.
Coverage & Premium Breakdown
Under the approved terms, the cost will be shared between city government operations and municipal utilities:
Entity / Category | 2026–2027 Premium | Key Shift |
City Portion | $866,876.98 | Covers general operations, emergency services, and parks |
Municipal Utilities Portion | $318,256.48 | Covers utility infrastructure and operations |
Liability & Auto Coverage | $538,201.95 | Decreased 11% following a fleet maintenance review |
Property & Equipment Coverage | $625,702.62 | Increased 12% as total property values rose from $373M to $401M |
Equipment Breakdown | $21,228.89 | Covers municipal boilers and heavy machinery |
Property Valuations & Risk Pool Dynamics
Chief Financial Officer Kristen Bobzien presented the renewal details, noting that 17 of South Dakota’s 18 first-class municipalities currently participate in the SDPAA risk pool.
“Our current renewal for 2026-2027 came in at just shy of 1.2 million. This is an increase overall of $1,408, so relatively flat,” Bobzien told the council. “The majority of that was due to the property values up from $373 million to $401 million. Otherwise, costs have stayed pretty steady.”
Bobzien explained that property valuations are currently benefiting from a 7.5% inflation guard rate. Comprehensive physical inspections conducted this past summer by HCA Asset Management will soon be reviewed with SDPAA to establish updated replacement valuations.
During discussion, Councilman Kyle Peters inquired why Rapid City remains the sole first-class municipality outside the statewide risk pool. Bobzien responded that commercial alternatives rarely match SDPAA’s tailored coverage breadth, particularly regarding specialized law enforcement liability.
Councilman Lynn Jurrens, speaking from his professional background in the insurance industry, noted that Rapid City’s frequent severe weather events make its absence advantageous for other pool members.
“They get whacked every year out there,” Jurrens said regarding hail damages in western South Dakota. “I don’t know if I’m understanding this completely, but I do understand where hail claims come in South Dakota, and I just have a hunch we can be blessed that they’re not in the pool.”
The motion to approve the policies and authorize a special check for the premium payment was introduced by Councilman Brent Mohrmann, seconded by Councilman Dan Schutte, and passed on a unanimous roll-call vote.
