2023-24 Property - Liability EstimatesJanuary 26, 2023
Costa Mesa Sanitary District
Mr. Scott Carroll
General Manager
290 Paularino Avenue
Costa Mesa, California 92626
Re: 2023-24 Property/Liability Estimates
Dear Mr. Carroll,
In preparation for the 2023-24 Property/Liability Program renewal on July 1, 2023, we are providing
our program members with a preliminary renewal contribution estimate to help with budget planning
for the 2023-24 fiscal year. We will continue to provide updates as we obtain renewal cost
information from our program excess/reinsurers over the next few months. Final contribution
amounts will not be confirmed until we issue the 2023-24 renewal invoices in early June.
Your agency’s Property/Liability 2023-24 estimated contribution is $352,448 to $361,459 based on
the following assumptions:
A 8% increase in operating budget from the 2023-24 program year
Your agency’s current exposures and losses currently on record with SDRMA, which include a
7.5% increase to the value of scheduled buildings and 7.5% increase to the value of scheduled
contents*
Pool reinsurance rate increases of 15% to 20% based on early estimates from our reinsurance
brokers
Credit Incentive Program (CIP) points for 2022-23 that your agency may have earned are not
yet calculated and, therefore, not considered in this estimate
*Per board policy, SDRMA trends property values based on trending factors published by Marshall &
Swift. Marshall & Swift trending factors can represent increases or decreases to property values to
reflect inflation of construction, building materials and other costs associated with replacement or
repair of damaged property. Trending factors apply to both buildings/structures and contents.
Properties added to your policy during the current policy year or appraised within the last year will
not be impacted by the trending factors until the next renewal for 2024-25.
This budget estimate is specifically provided to assist you with preliminary budgeting and is NOT a
renewal indication, renewal quote, or a “not-to-exceed” contribution. The final renewal
contribution amount may be in excess of this estimate depending on the changing conditions of the
insurance market over the next few months. Since we do not have the 2023-24 renewal rates from
the program excess/reinsurers, we recommend you budget towards the upper end of the range, plus
any differences in exposure or losses which have not yet been reported to SDRMA.
Once we receive your agency’s 2023-24 Renewal Questionnaire in February, with updated exposure
information, we will distribute an updated renewal estimate in late March. If you make any
substantial changes to your policy over the next few months, please contact us
memberplus@sdrma.org or 800-537-7790.
If your agency would like to consider other liability limits for the 2023-24 program year, you must
notify SDRMA in writing no later than June 1, 2023. We are unable to accommodate changes received
after June 1 due to our excess carrier requirements and deadlines. Please email
memberplus@sdrma.org for liability limit options.
Members considering withdrawal from coverage with SDRMA for the 2023-24 program year are
required to submit a “Notice of Intent to Withdraw” by April 1, 2023, in accordance with SDRMA
Bylaws and must have completed the initial three full program year commitment period. If you
have any questions about withdrawing from our program, please contact Ellen Doughty at
edoughty@sdrma.org or 800-537-7790. Withdrawal notices received after April 1, 2023, cannot be
accepted based on the SDRMA Bylaws and Joint Powers Agreement.
On behalf of the SDRMA Board of Directors and our entire risk management team, we thank you for
your continued participation in our programs.
Sincerely,
Special District Risk Management Authority
Ellen Doughty, ARM,
Chief Member Services Officer