Photo by Solomon Crenshaw Jr.
Margaret Ann Pyburn of the Cobbs Allen insurance agency talks to the Homewood City Council Finance Committee about the city's rising insurance rates on Monday, Jan. 22, 2024.
Margaret Ann Pyburn of Cobbs Allen insurance agency was the bearer of bad news when she told the Homewood City Council’s Finance Committee this week that the city’s insurance costs will rise in 2024.
But the news could have been worse, as other cities saw greater increases in their costs, Pyburn said.
Finance Committee Chairman Walter Jones said that, for the period from Feb. 1, 2024, to Jan. 31, 2025, the increase for Homewood will be $250,224 more than the same period the year before. That’s a 13% increase.
“I know it is a lot, but based on what we see currently with other municipalities and other businesses, it’s really not a lot,” the Cobbs Allen executive vice president said. “We’re usually delivering about a 20% increase.”
The good news, Pyburn said, is that claims for the city of Homewood seem to be trending a bit down this year. That has not historically been the case, she said.
“Auto is still up a little, tiny bit this year,” Pyburn said. “They go back and look five years. That’s how they price, on a five-year trend. Also, not only did they increase the rate, but on the property value they increased the property to go up some. Obviously, it costs more to rebuild something this year than it did last year.”
Cars and trucks also are more expensive to repair and to replace, she said.
“We’re seeing a lot of high-end auto claims,” Pyburn said. “Not with you guys, but what’s going on in the industry in Alabama affects everybody, unfortunately.”
Jones told the Finance Committee that the increase in the insurance cost will be on the agenda for Monday’s full council meeting.
Finance Director Robert Burgett told the committee that only a slight budget amendment will be needed to deal with the increase. The fiscal 2024 budget already included a 10% increase in the cost of the city’s insurance.
In other business, the Finance Committee recommended that Bull Construction’s bid of $508,269 be accepted for the Reese Street sidewalk improvement project. Burgett said the city will tap into the carryover fund balance in the construction account to fund $130,000 of that.
Also, a pair of Chevrolet Tahoes, one 2015 and the other 2016, were declared surplus so the city can dispose of them. One had damage from a storm, and the other was damaged in a wreck.
The Public Safety Committee dropped the request for consideration of improvements to the crosswalk at Oxmoor Road and Bridge Lane. It was determined that the city needed to take no action on the matter.
The Public Works Committee recommended granting permission for a retaining wall to be built in the right of way adjacent to 1629 25th Terrace S. That recommendation is dependent on the proper indemnification agreement being signed by the property owner.
The committee also recommended granting permission for a replacement retaining wall at 214 Edgewood Blvd., again with the proper indemnification agreement.
The Special Issues Committee sent SouthPoint Bank’s request for a sign variance to the full council without a recommendation, pending the results of a public hearing on Monday.
The committee also set a public hearing for a request for a sign variance request by White House Interiors at 1916 28th Ave. S. The committee sent the request to the full council without a recommendation, pending the results of a public hearing on Feb. 12.
The committee discussed an amendment to the previously approved final development plan at 815 Green Springs Highway for The Edge mixed-use development project. The amendment reflects the resurvey of the development into two separate lots to facilitate future development.
The owner, J.J. Thomas of Greensprings Development, said the back parcel has been sold to Homewood Community Church. He added that six restaurants are under lease in the front two buildings.
The committee sent the matter to the full council without a recommendation, pending the results of a public hearing on Monday.
