Facing higher premiums and large deductibles, Henry County council creates deductible reserve funds

Henry County officials spent the bulk of the meeting grappling with a sudden and substantial change in the county’s liability-insurance landscape and the practical need to set aside money to meet new deductibles.

Council and staff described a recent renewal that shifted the county into what several speakers called, for practical purposes, partial self-insurance with high per-incident deductibles. The sheriff’s office representative said calls for service rose by roughly 28% since 2020 — an increase he said equates to about five additional calls per day and has stretched staffing and administrative capacity.

"We are self insured at this point," one council member said as the discussion turned to how to pay potential claims and meet deductibles. Members debated whether to create a single county-level reserve or individual nonreverting deductible funds for departments that either generate their own revenue or carry distinct risk profiles (sheriff, highway, EMS, health, park, community corrections and commissioners). Some council members favored a single fund to smooth actuarial volatility; others said departmental tracking is necessary because funds and levies differ by taxing unit.

The council ultimately voted to create nonreverting deductible funds for health, park, EMS, highway, commissioners, sheriff and community corrections, and instructed county finance and legal staff to draft the necessary ordinance and to produce department-level estimates based on historical claim data. The chair emphasized the council will still need to determine appropriate funding levels once staff and the insurance advisor supply estimates.

Why it matters: A near-term premium payment and larger deductibles expose county budgets to substantial new cash needs and could require mid-year appropriations if claims occur soon. Creating dedicated deductible funds gives the auditor and finance staff a place to pay claims, but council members noted those funds will need material infusions during the next budget cycle.

Next steps: County finance will prepare estimates for recommended reserve sizes, and the county attorney will prepare an ordinance to create and authorize nonreverting deductible funds for the named departments. Council expects follow-up at the next meeting to set target balances and possible additional appropriations.