The City of Dearborn Heights is getting money back from Michigan Municipal Risk Management Authority (MMRMA) 1.2 million. What is MMRMA this is what their website says.
Michigan Municipal Risk Management Authority (MMRMA) is a public entity self-insurance pool that provides liability and property coverage to municipal governmental entities across Michigan.
MMRMA was born in 1980 in a marketplace that was becoming increasingly unfriendly to public entities. Three member municipalities founded MMRMA as a joint purchasing arrangement, which allowed them to secure necessary insurance coverage at a reasonable price.
Around the same time, other public entity pools began to crop up across the United States. The idea was criticized and predicted to fail. However, like many of its fellow pioneers across the nation, MMRMA grew steadily over three tumultuous decades. MMRMA, and the entire government pooling industry, continues to thrive in 2010.
Within a few years of MMRMA’s inception, commercial insurers either ceased to offer coverage to governmental entities or sharply increased their premiums. The mid-1980s saw a big boost for public entity pools. In 1985, 133 members joined MMRMA and 1986 brought another 53 new members.
Also in 1985, MMRMA responded to the volatility of the commercial reinsurance market by assuming some risk directly. This enabled MMRMA to continue offering affordable, reliable coverage to members. Again, this trend-setting move was decried by the commercial insurance industry. But again, the skepticism was unfounded. Today, most public pools nationwide follow MMRMA’s lead and retain some risk themselves.
Thirty years after its inception, MMRMA is the largest liability and property pool in Michigan and a recognized national leader in the field. We continue commitment to meeting the challenges of tomorrow.
The same thing happened in 2011 then the Treasurer asked permission from the council to barrow $600,000.00 from the MMRMA. This time, however, it’s my understanding that this money isn’t being borrowed, but rather these are funds that the city didn’t have to use and those money’s will now be paid back to the city. With this money coming into the city, it looks as if the City will have a balanced budget. Let’s put things in perspective here if not for these funds coming into the City, the City would not have a balanced budget. It’s not the Mayors great leadership that the City will have a Balanced Budget, not because of closing down the city four days a month. Not because of early outs, not because of health care savings, and not because of the HO. Yes all those things helped, but even with them if not for these funds from the MMRMA the City would still have an unbalanced budget.
I think it’s important for all of us to understand this as we are all too aware the Mayors seat is coming up in 2013 there’s little doubt that he will be running again, and no doubt he will be running on balancing the budget. It’s important for all of us to remember how the budget was balanced, and to remember just what the Mayor didn’t do for years leading up to the financial mess the City is in.