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We've enclosed a chart showing your city's. share of this yeaz's LMCIT property/casualty • . .--- clivtd~nd; hovv Iha~ :com azes with our remi ,, ~ __~ _, P Y P ums, and what your city's past premiums~and 'd~viitls have ~ieen. Each city s share of the. total .dividend depends on the city's total premiums '~ and~~bsses for all the years the city has been a member of LMCIT. The longer your city has been ~~ ' ` ~ a ~i`iember and ~he more successful you've been in, avoidin losses the .. ~ `. dividend. .R .. g ~ greater your city's .LMCIT premiums for 2004 _ Property/Casualty Program Qne of LMCIT's fundamental goals is to provide the coverage cities need at a stable and ` predictable cost. That's.not to say.that costs will never increase. Costly reinsurance premiums '_ ~_ ~d an unusual string of large~roperty losses.mean that property. rates for 20{14 need to go up. '~ IYorti~stely, good loss experience has made it possible to reduce liability rates for 20((k~, offsettin the hi p p rry g gher roe ates. Overa~ property and liability premiums should stag about at ~- `~ last yeaz's levels Individual cr'_ties may see some modest premium increases as a result of y` -changes in city property values or new exposures. _ ~€'orkers Compensation ., . Rising medical costs are having a,dramatic impact on LMCIT's work comp rates, which as a result are increasi~ig 12 percent on average for 2004. Every three years, we also make ' ,adjustments to personnel classifications fQ~.;watk comp rating purposes. The result this-year is _ - that`s~me personnel classes may s~exates ip~rease:by up to 30 percent. In most cases, these ` in~eases should be~ offset by decreases to` other personnel classes.. Even though the work comp _ ~ cover~e rate increases aze hi than we'd,like, that increase will be nothing Like the. ~%, 50% .' , .. or even: greater increases'I[iat~privafe insurance .Buyers are seeing. .. At the end of the day, what the, premium rates. are and whether LMCIT can return a dividend both de en , p d, gLUte supply, on what the losses are. LMCIT s member cities have done ~ outstanding job of controlling and avoiding losses... That takes both the support of the city's - elected bf~cials and the efforts of your city staff:. Your commitment to controlling losses pays offfor all of us -thank you and congratulations. Questions If you have any questions about your city's share of LMCIT dividends or our premiumrates f'or 2004, please call Pete Tritz at 651-281-1265; Ann Gergen at 651-281-1291; or any of the members of the LMCIT Board. s