Thursday, May 17, 2007

Just Another Tax? State approved home insurance rates skyrocket.

Homeowners Brace For Insurance Spike
by Patricia Daddona - published by The Day - May 17, 2007

More than 4,000 home insurance customers with the Middlesex Mutual Assurance Co. in towns from Old Saybrook to Ledyard will be getting rate increases of 85 percent.

Middlesex is one of four insurance companies for which sizeable rate increases have been approved under new state Insurance Commissioner Thomas Sullivan.

Coastal homeowners typically are charged rates at the high end of a range of increases. At Middlesex, for instance, other homeowners could have a 3 percent decrease or an increase of just 2 or 9 percent, but those in the shoreline towns of Stonington, New London and Old Lyme will have 85 percent hikes.

Kevin Reardon of the Reardon Agency in Waterford and John Scott of the Bailey Agency in Groton said this is just the beginning.

“If every single insurer takes exponential rate increases, where are homeowners going to go?” asked Reardon. “Once one insurance company does it, they're all going to do it. Regrettably, it's going to be a position where the homeowner has no resort.”

“The cost to us increased more than 100 percent” for reinsurance, said Chris Anderson, a spokesman for Middlesex. “We do buy the highest level of reinsurance catastrophic protection because we care about our clients. I think that's reflected in the fact that we are rated by A.M. Best as A+, a superior rating.”

Judy Jackson, chief executive officer of the Norwich-based New London County Mutual Insurance Co., gave reasons why her company will raise its rates as much as 64 percent, with 43 percent the norm in New London County.

“For two years now,” Jackson said, “we've lost money on virtually every coastal policy we write because of the expensive catastrophe

reinsurance. What industry goes forward and continues to lose money? You can't keep doing that. We were forced to either raise rates or shed enormous amounts of business.”

In an interview Wednesday, Sullivan confirmed that those are the types of issues forcing rates up. He pointed out that of the 100 carriers in Connecticut, only Allstate has refused to insure new customers. A healthy market is one that thrives on competition, not government intervention, he said.

“Markets are very cyclical,” Sullivan said. “While these increases may be painful, if markets are open and competitive, you will see cycles of increase but also cycles of stability. As long as we have ... more players, not less, eventually competition will catch up with rate increases.”

Among the reasons his staff is approving high rate increases, he said, are:

• Forecasting models have changed and show New England as overdue for a major hurricane.

• Re-insurers, the companies that insure the insurers, are charging those insurers more to stay in business.

• Credit rating agencies have increased the surplus requirements of all of the companies by as much as 20 or 30 percent or more. In order to maintain their ratings, the companies have to set aside more of their surplus.

Scott, the Groton insurance agent, said coastal homeowners are shopping briskly for better-priced insurance, but agents are getting “heartburn” trying to make the best deal for their customers.

“Each company is defining 'coastal' very differently, and that's where the department did not do a good job” when writing guidelines for coastal insurance last year under former Commissioner Susan Cogswell, said Scott. Cogswell is now a deputy commissioner.

“We do get angry phone calls just about every day from people who justifiably feel they aren't shoreline people. Someone in Ledyard wouldn't expect to get a letter saying they have to have a high deductible,” he said. “We're ending up having to move the business to another insurer, which is what (the insurers) wanted.”

Coastal bands are the distance from bodies of water within which more stringent requirements like hurricane deductibles can be imposed. Under Cogswell's guidelines, coastal bands extend to 2,600 feet from the water, about half a mile.

Sullivan maintains that the guidelines in place are adequate.

“There should be no ambiguity as to what we define as coastal,” he said. “I'm not aware of companies who are not following the guidelines.”

Sullivan also warned against seeking quick fixes to the market fluctuations through lawmakers or statewide policy changes, as Florida, a state more prone to hurricanes than Connecticut, has done. Taxpayers in Florida will pay dearly when the state, acting as a re-insurer, has to cover major losses, he said.

“It's better to have more competitors in your market and let the market determine prices,” he said.

The insurance department has a responsibility to balance the needs of the consumer with the solvency of the market, Sullivan added. For instance, a homeowner with an insurer who goes bankrupt has liability coverage of $400,000 through a “guaranteed fund,” but if that home is worth $500,000 the consumer has to cover the difference, Sullivan said.

Sullivan is using a New York model to develop a new program within the FAIR Plan, a market of last resort, which would give consumers who couldn't find coverage a company that could write policy for them. Details are still being worked out, he said.

Jackson had another suggestion: Homeowners should take measures to protect their property where possible.

“That'll help with future insurance costs,” she said, “and it'll help them have a place to go home to after a hurricane hits.”

Sullivan urged consumers to use the department's hotline for coastal coverage: 866-870-4305.


Middlesex Mutual Assurance: 3 percent decrease to 85 percent increase

Patron's Mutual: 40 percent to 81 percent increase

New London County Mutual: no change to 64 percent increase

The Merit Plan: 17.5 percent increase statewide

Source: Connecticut Insurance Department

Wednesday, May 16, 2007

Jewett City 'Freeman' pass budget (22-6) while 1400+ voters do not attend

Board Approves Jewett City Budget
by Megan Bard - published by The Day - May 16, 2007

To offset a potentially significant tax increase for borough residents, the Board of Warden and Burgesses decided Tuesday to use more of the borough's surplus to lessen the impact.

The $454,784 Borough of Jewett City budget for 2007-08 was approved Tuesday at the Annual Freeman's Meeting by a 22-6 vote.

The budget, which is a $43,089 increase over the current year, had been proposed to require a 2.25 mill tax rate. With the recent revaluation of all taxable property within the town of Griswold, including the borough, the impact for some could have meant a 50 percent increase in taxes.

For this reason, after the budget was approved, the warden and burgesses agreed to set the new tax rate at 2 mills, using an additional $32,059 from the borough's surplus account.

Burgess Alan Geer expressed some concern about this decision, saying it might leave the borough with too little to pay for significant emergencies. With the transfer, the fund balance is left at $27,197. Nonetheless, the entire board was in favor of the decision.

“It's important. We needed to get it whittled down to where they can handle it,” Geer said of the tax impact on residents living on fixed incomes.

Warden Cynthia Kata, a former town assessor, said the tax increase on a residential property with an average assessment of $112,000 will be $49 for the year.

“This is about the best we can do,” Kata said after announcing the tax rate.

Resident Ron Ward had been planning to ask for the borough utility company — which sets the electrical and sewer rates — to contribute more to the budget to offset the tax increase. Ward did not make the request during the meeting, however.

Instead, Ward said he will ask the utility commissioners directly to contribute more in the future. The company contributed $100,000 to the budget's revenue projections in the approved budget.

The majority of the borough budget's increase is attributed to salaries for borough positions, including extending the hours of the tax collector from part time to full time, and retaining two resident state troopers. It also includes $10,000 more to maintain the borough's fire hydrants.

Tuesday, May 15, 2007

All aboard -- the bandwagon is rolling!!

On February 4, 2007, the Norwich Bulletin expressed its opinion in an editorial entitled, "Towns Can't Thrive Without Able Leadership." The Norwich Bulletin has missed two recent opportunities to be a "participating citizen" when "able leadership" is needed "as Eastern Connecticut advances into the 21st Century."

Here are a couple quotes from the article:
Some communities have able leaders, and for that they should be grateful. But sometimes local elections are little more than popularity contests, whose outcomes fail to best serve constituents.
Are you satisfied with the people running your town?

No longer is simple tenure good enough to secure another term leading a town. Common sense, due diligence and a plan for the future are needed to make sure there are more towns like Preston and Colchester and fewer like Canterbury and Montville.

Plainfield and Griswold seem to be turning the corner into the 21st century, and kudos to the new leadership for bringing it. To the others from another generation of elected officials, hop on board the bandwagon to the future, or get out of the way.

As for the recent Jewett City Borough election, the Norwich Bulletin did not make an endorsement in the contest for Borough Warden. The only way that towns can have "able leadership" is for the residents to vote. Going to the polls requires taxpayers to make a decision and select a candidate.

If the Norwich Bulletin could not be a "participating citizen" and make a decision on a Warden candidate, then the words of the editorial back on February 4th just simply ring hollow.

Budgets and taxation are two of the most fundamental functions of government. Jewett City residents have direct input on the budget through the Freeman's Meeting. On this topic, the Norwich Bulletin didn't believe that the Tuesday, May 15th meeting was worthy of a news story. In fact, the small notice published did not even correctly publish the proposed mill rate.

Why it is that a proposed 52% increase in total tax collected is not worthy of a news article seems to be inconsistent with the stated position of the Norwich Bulletin back on February 4th. How can residents answer the question, "Are you satisfied with the people running your town?" (as asked by the Norwich Bulletin on February 4th), when the news papers give little to no coverage of the budget meeting to raise awareness so that residents will attend?

Jewett City Party will continue in its efforts to inform residents and encourage their attendance at public meetings. Especially, attendance at meetings where taxpayers can vote. A news article appearing this morning in the local press would have definitely "turned out" a few more attendees at tonight's Jewett City budget meeting. Taxpayers attending the meeting would have an opportunity to watch, participate, and make an independent opinion regarding their "satisfaction" with local leaders.

The Norwich Bulletin encouraged towns to "hop on board the bandwagon to the future, or get out of the way." Advise timely given needs to be advise presently taken. Come on Norwich Bulletin -- the band wagon is rolling, endorse candidates and give advance coverage to meetings where citizens can vote. Just do it -- and get on board!!

Monday, May 14, 2007

Working families need affordable health care


Senate leader: Let state pay for health care

When Lorraine Conderino and her husband retire in a few years, they fully expect to be working part-time jobs just to pay for their health-care coverage.

"They look forward to retirement, whenever that may be, but they can't, because they have to go back to work," said Conderino, 59, about people nearing retirement.

The Colchester resident echoes the worries of many others who say health care in Connecticut needs an overhaul.

And state Senate President Pro Tempore Donald Williams Jr., D-Brooklyn, says he has a plan to fix it.

At 7 tonight, the public is invited to the Rose City Senior Center in Norwich, where Williams will present "HealthFirst Connecticut: A Bold Approach to Fix a Broken System," a plan to reform the state's health-care delivery system.

Williams' proposal includes providing insurance coverage to the uninsured, expanding access to health care and ensuring quality health care throughout Connecticut with what he describes as a single-payer, "Medicare-for-All" plan.

"This is a landmark bill and part of an effort to do what no other state has done -- provide health care to everyone in the state, regardless of age or income," Williams stated in a press release. "While we work to find the best possible way to bring about wholesale reform of the health-care system in our state, Senate bill no. 1 includes immediate action to cover more than 140,000 in the state currently without insurance and measures to ensure access to people who have insurance."

Sylvia Nyszczy, a retiree in Griswold who uses Medicare, said the state's system works only for the poor and the rich.

"The middle class are out," said Nyszczy, who switched to Medicare from a private insurance plan a year ago.

Sunday, May 13, 2007

52% Increase in Jewett City Borough Taxes?? Vote NO on Tuesday, May 15th

"Residents and taxpayers cannot afford a 52% increase in taxes paid to the Borough of Jewett City, said Ron Ward, JCP Founder & recent candidate for borough Warden. He continued by stating, "Neither can we afford to eliminate the resident state troopers that patrol our streets."

What's the problem?
Additional revenue is needed to keep our streets safe and provide a tax-break to residents and taxpayers.

What's the solution?
In the past, the Jewett City Department of Public Utilities (Electric & Sewer) has contributed $100,000 to the Jewett City Borough budget. Since the residents of Jewett City own the electric & sewer, it is sorta like shareholders getting paid a dividend when the JCDPU makes its annual contribution to the borough budget.

The residents and taxpayers need a bigger dividend paid to the shareholders for Fiscal Year 2008. By contributing and additional $106k to the borough budget, the JCDPU will enable residents and taxpayers to receive a 4% tax-break and, at the same time, two resident state troopers will stay on the job patrolling our streets.

click here to read the Jewett City Party alternative proposed budget.


5:30 pm on Tuesday, May 15th - Town Hall, 28 Main Street, Jewett City

Vote "NO" on 52% tax increase borough budget

Vote "YES" for 4% tax-break & $106k more from electric and sewer

Non-resident Taxpayers can vote on budget!!


article printed below was reported in The Day on May 12, 2007
Written by Megan Bard

Jewett City Readies To Vote On 2007-08 Borough Budget

Griswold — Although significantly less than the proposed $32 million townwide municipal budget for 2007-08, the Borough of Jewett City spending plan for the next fiscal year still requires borough resident approval.

The Board of Warden and Burgesses will host the borough's Annual Freeman's Meeting on Tuesday at 5:30 p.m. in the Town Hall first-floor conference room. At that time, residents living within the one-square mile borough will consider and vote on the proposed $454,784 borough budget for 2007-08.


The townwide municipal budget, which also affects borough residents, will be voted on at a referendum scheduled for May 21.


The proposed borough budget is $43,089 more than the current year's financial plan. If approved by voters, the budget will require a tax rate of 2.25 mills. The majority of the borough budget's increase is attributed to salaries for borough positions and retaining two resident state troopers.


The cost for the police coverage next year is proposed as $241,672, a $26,172 increase compared with the current year. The borough pays roughly 70 percent of the cost for the troopers, including office rent and utilities, supplies, training and overtime.


Salaries for other borough employees, including the warden, burgesses, clerk, assessor, treasurer, bookkeeper and tax collector, has increased by $11,917, primarily because the tax collector's position was changed from part time to full time to meet resident demands.


An additional $10,000 has been added to the budget to maintain the fire hydrants.