ST. PAUL – “It’s crazy, and I hope the government finally does something,” St. Paul County Pastor Glen Ockerman said bluntly during a recent discussion about rising insurance costs for local organizations.

The discussion took place at a council meeting on 13 August, when the council considered whether the Mallaig Agricultural Society had applied for funds to cover insurance costs.

During a delegation trip on July 23, the agricultural association attempted to renegotiate its soon-to-expire community recreation agreement with St. Paul County.

In a letter attached to the July 23 agenda, Daniel Dargis, president of the Mallaig Agricultural Society, said the organisation was going through difficult times financially and that “we are facing significant challenges which require a reconsideration of the terms set out in the current agreement.”

According to Dargis, rising insurance costs were one of the main reasons for the increased financial challenges the company faced.

The Council instructed the administration to make a recommendation for a cash contribution for 2024.

Introducing the point on August 13, CAO Jason Wallsmith said an additional donation of $35,000 for 2024 would help cover the organization’s insurance premiums for the year.

To the question, “Could we fit that into our budget?” the short answer is “yes,” Wallsmith said, explaining that the county would be able to cover the additional funds through possible surpluses at the end of the fiscal year.

Wallsmith said the insurance premiums the club must pay are $33,000 for the Mallaig arena, $6,060 for the hall, $24,614 for the curling rink and $1,167 for liability insurance.

Phyllis Corbiere, director of corporate services, said the club’s insurance amount for the arena decreased while the insurance amount for the curling rink increased after the value of the properties was reassessed.

Following Lakeland this weekCorbiere said the company saved $1,400 in insurance premiums over the year, but that was not enough to offset the costs.

Corbiere also noted that last year the county paid $117,000 in property insurance premiums for community associations and organizations under its insurance policy with the Rural Municipalities of Alberta.

Ockerman called the rising insurance premiums that taxpayers and even the municipality have to pay “crazy.”

He said the county needs to try to generate enough money to pay for insurance on its facilities, and that the insurance premiums paid could likely be used to build other necessary facilities.

“We’re not the only ones who feel this, are we?” he asked.

Councillor Louis Dechaine said the issue of insurance premiums affected “every aspect… such as the church in Mallaig”.

“Can we start our own insurance company?” asked Ockerman.

In response, Councilman Dale Hedrick said, “You know, there are some entities – I’ve talked to people – but that’s exactly what they’ve done… instead of paying an insurance company, they put the money into a separate account every year and just keep it.”

“Maybe that should be the topic,” Ockerman replied, and that the county could perhaps act as insurer itself, “because this insurance company is not letting up.”

Council then returned to the original discussion, with Councillor Maxine Fodness making a motion to approve a one-time, unbudgeted donation of $35,000 to the Mallaig Ag Society for 2024. Additionally, Council will discuss how to proceed with the Community Recreation Agreement at a future strategic planning meeting.

Following Lakeland this weekOckerman said the county will try to speak with provincial ministers at the fall meetings of Alberta’s rural municipalities to see if there are ways the province can help keep community facilities operating.