Washington Counties Risk Pool
From WCRP Executive Director Vyrle Hill
his 2008 Annual Report denotes the conclusion of
complex known as the Mottman Plaza in Tumwater.
This resulted from the Washington Counties Insurance
Fund’s decision to relocate to another building in the
complex. Much of the acquired space was almost
immediately leased to a private party.
Tthe first 20 years of operations of the Washington
Counties Risk Pool (“the Pool” or “WCRP”). It is my
pleasure to have been a part of this fine service
organization.
The Pool’s success in part has resulted from the
combined efforts of the professionals – actuaries,
auditors, brokers and insurers – the board of directors
has decided to employ and its professional and highly
dedicated staff. However, it is the member counties’
holding to sound risk management principles and the
contributions and involvement of the member
counties’ elected and appointed officials and their
employees serving as directors and alternate directors,
officers and committeepersons that has been the key
to the success, and it is the attribute that sets the
Washington Counties Risk Pool apart from most of the
other pools. We hope that recent marketing efforts
will result in even more counties becoming members
of the Washington Counties Risk Pool over the course
of the next few years.
Financial Position: The following are some
highlights from Fiscal (and Policy) Years 2008, along
with some 5-year comparables:
Total Assets grew by $3.3 million (12%) during
Fy2008 to nearly $31.1 million. The 5-year
increase was an astounding $17.8 million (133%),
but it would have been more except for the fact
that Fy2003 included nearly $2.9 million of
reassessment receivables. During Fy2008, current
assets increased $2.9 million while non-current
assets increased $0.4 million.
Operating Income of $800,000 was experienced,
representing a $1 million improvement from the
$200,000 Operating Loss experienced the prior
year. A 7% reduction in the estimates for claims
reserves ($8.2 vs. $8.8 million) by the
Joint Self-Insurance Liability Program: The Pool
has been providing its membership with occurrence-
based, joint self-insured coverage for 3rd-party
liabilities since October 1, 1988. Coverage limits have
grown over time, from the $1 million limit that existed
during the initial couple of months, to $5 million, $10
million and $15 million until reaching the $20 million
limit that has existed the past five years. (Note: $5
million additional limits were available some years as
individual county options.)
independent actuary substantially contributed to
this change. During the 5-year window, claims
reserves were reduced 24%, more than $2.5
million from Fy2003’s $10.7 million claims reserves
total.
Interest Income slipped $130,000 (17%) even with
larger surpluses for investing (funds not needed
for current operations). This reduction is believed
to have resulted from the lowering of interest
rates to address the declining national and
worldwide economies.
Washington Counties Property Program:
Participation in the property program during Py2008
grew to 27 counties with covered properties totaling
nearly $2.4 billion. In just the few years the Pool has
offered this optional, jointly-purchased property
insurance coverage, participation has grown nearly
60% and the value of covered properties by more
than 70%. Coverage for the members’ historic
properties was substantially enhanced during Py2008
with the inclusion of the Historic Properties Valuation
Amendment.
Net Assets (sometimes referred to as Members’
Equity) rose almost $900,000 during Fy2008 and
almost $4.4 million during the past five years to
nearly $6.8 million at September 30, 2008. $5.7
million is listed as being ‘Restricted’ to satisfy, in
large part, the Section D provisions of the Pool’s
Underwriting Policy, which was enhanced by the
Board of Directors in March 2007. The remaining
$1.1 million is invested in Capital Assets (net of
debt). The Pool’s board of directors retains
authority to determine if, how much, and when
distributions of the Net Assets are to be made.
Headquarters Office: During Py2008, the WCRP
exercised its joint tenancy rights and purchased other
interests in Building 2558 of the office condominium
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