Agenda Item
Meeting Date: 5/13/2020 - 7:00 PM
Category: Consent Agenda Items
Type: Action
Subject: Approval of Treasurer's Bond Coverage
Vision 2022:
Financial & Facilities Management
Continue to ensure a balanced budget that builds and maintains a fund balance that meets Board policy.
Policy:
Background: According to the Illinois School Code, the District is required to carry a treasurer's bond for 25% of the amount of all bonds, notes, mortgages, moneys and effects of which he/she is to have custody at one time. The Board of Education is being asked under a separate report tonight, to approve the bond amount of $30,000,000 for fiscal year 2021. This is an increase from the bond amount of $27,000,000 for fiscal year 2020.
File Attachment:
Summary: Craig Nelson from Arthur J. Gallagher canvassed the market for us and found the renewal offer from Brokers Risk, insured through their Lloyds of London bond program to be the most cost effective. The quote offers the annual premium of $17,133 which includes a bond issuance fee of $1,399 for the broker. This represents a $1,749 increase over last year's premium.

The following agencies were also contacted for quotes: Travelers, Hartford and Liberty Mutual. Quotes ranged from $20,250 - $24,500.
Funding: Education Fund $17,133
Board Policy
Recommendation: It is recommended that the Board of Education approve binding coverage in the amount of $30,000,000 with Lloyds of London at the cost of $17,133.
Approvals:
Recommended By:
Signed By:
Kimberly Funkhouser - Treasurer
Signed By:
Bill Farley - Assist. Superintendent
Signed By:
Jeff Schuler - Superintendent
Vote Results:

Original Motion
Member Ginna Ericksen Moved, Member Susan Booton seconded to approve the Original motion 'It is recommended that the Board of Education approve binding coverage in the amount of $30,000,000 with Lloyds of London at the cost of $17,133.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 7 Nay: 0.
The motion Carried 7 - 0
   
Brad Paulsen     Yes
Jim Mathieson     Yes
Chris Crabtree     Yes
Rob Hanlon     Yes
Ginna Ericksen     Yes
Susan Booton     Yes
Dave Long     Yes