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Re-chartering Insurance Fee To Increase

 

Message from Scout Executive Ray Brauer

Dear Unit Leader:

One of the benefits that Twin Valley Council has provided your unit over the years is insurance.  Insurance cost comes in several different forms including:

Comprehensive General Liability:  This coverage provides primary general liability coverage for registered volunteer Scouters with respect to claims arising out of an official Scouting activity. This coverage responds to allegations of negligent actions by third parties that result in personal injury or property damage claims that are made and provides protection for Scouting units and chartered organizations.  In addition to your unit’s $40 national charter fee and portion of your $33 national registration fee, the Council pays an additional $8,050 annually for this insurance.

Automobile:  This insurance not only covers council owned vehicles, but also provides excess liability coverage to volunteers engaging in official Scouting activities.  For example you are driving youth to camp and are in an accident.  This coverage covers your liability (not collision) over and above your policies insurance.  It also covers volunteers for vehicle liability if you are driving camp or personal vehicles in an official capacity (Think camp work days volunteer camp staff at day camp).  This is a cost of $5,400 annually.

Accident and Sickness:  This is a secondary policy designed to help with medical bill over and above a Scout or Scouter’s personal policy if injured or becomes sick during a Scouting outing.  (Like breaking an arm during a troop campout). This is currently the policy that units are charged a $1.25 per person at re-charter time for.  Cost of this policy is $2,520 annually.

Directors and Officers Insurance:  This is an excess liability policy designed to cover our council board members for serving in their role as volunteer council leaders.  This policy cost $2,082 per year.

Property Insurance:  This insurance covers all the building, building contents, and program supplies at each of our camps.  The cost of this insurance is $8,200 per year.

This is a total insurance bill of $26,252 per year. 

The National Council has recently changed its policy of allowing councils to charge extra fees at re-charter to cover these insurance cost.  In 2017, we had approximately 1,400 youth and 700 adults re-charter (2,100 people). Distributing this total insurance cost equally across all members would result in a cost of $12.50 per person.

At this month's board meeting the board approved the following schedule of re-charter fees to help offset the insurance cost our council spends.  Part of this resolution also stated that this fee increase would be re-examined annually and may be raised or lowered if:  National also raises its annual fees, cost of insurance raises/lowers, and the state of council finances overall change.

 

Insurance Fee

National Charter Fee

Total Re-Charter Fee

2018 (Current)

$1.25

$33.00

$34.25

2019 (This year’s re-charter due in December)

$3.00

$33.00

$36.00

2020

$6.00

$33.00

$39.00

2021

$9.00

$33.00

$42.00

2022

$12.00

$33.00

$45.00

This board is very aware, mindful, and sympathetic to the pressure this also puts on unit and family budgets.  That is why this change is being phased in over 4 years with only a $1.75 increase for 2019 (Will be collected with your 2019 Re-Charter due December 2018).  It is also why this fee increase will be re-evaluated annually. 

 

Why is this change necessary?

We are not sustainable as a council under our current structure.   During the past 2.5 years the council has tried ways to both cut cost and increase revenue.   In 2017, we had our 1st balanced budget since 2012 with a net loss over that time frame approaching $200,000.  Although 2017 was balanced, it was balanced due to a couple items that are not repeatable in the future (Most notably one of our DE’s was retired military and did not participate in the BSA Medical Benefit Program).

If we are to continue to operate 3 camps (Cedar Point, Cuyuna, and Norseland), expand camp program opportunities in the future, continue providing unit support through professional staff and service center, improve our council website, and maintain other vital council functions, we must continue to make changes to become sustainable as a council.

Friends of Scouting and Popcorn sales are vitally important to the overall success of our council and are what funded the insurance cost in the past.  Currently, the 2018 Friend of Scouting campaign is $26,000 behind last year and $43,000 behind budget.  Camping revenue is also $30,000 below budget due to decrease in out of council campers at Cuyuna this summer and lower than expected attendance at Cub Camps this summer.

This was not an easy decision the board had to make.  We apologize for the late notice for 2019, but hope you understand why the decision had to be made.

 

Yours in Scouting,

Raymond W. Brauer | Scout Executive/CEO

BOY SCOUTS OF AMERICA
Twin Valley Council
810 Madison Avenue
Mankato, MN 56001
O (507) 387-3124 | C (507) 514-3922

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