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The February 22, 2003 minutes of the H awai' i County Police Commission reiterated that department
<br />vi ew, as fol I ows:
<br />" Business Manager M aesato summarized the report that was distributed and filed. He stated that
<br />they have no bids for auto insurance, and that they probably will have to pay a higher premium.
<br />Chi of Correa reported that i n the I ast seven years, they added 35 more vehi d es. I n the past two
<br />years they had 39 cl ai ms out of approxi matel y 350 vehi d es. He doesn't bell i eve thi s i s an i nordi nate
<br />number. Vehi d es are subsi di zed, not county- owned, and offi cers pay for thei r own comprehensi ve
<br />and col I i si on insurance."
<br />County self - insurance would lower costs considerably, but the State of H awai' i does not al I ow the
<br />counti es to self -i nsure a vehi d e unless it i s county- owned. The savings, essentially, would represent the
<br />difference between premiums and actual losses. For the years surveyed (19942003) by Aon I nsurance
<br />Managers, Inc. when premiums averaged $374,000 and losses from claims averaged $292,000, the
<br />difference (and theoretical savings) amounted to $82,000 annually. Improvement in the accident rate of
<br />off cers and subsequent reducti ons i n d ai ms woul d further add to savi ngs.
<br />D. Five -Year Budget Summary
<br />A five -year summary of actual expenditures reflecting (1) mileage and auto al I owance, (2) fuels and
<br />lubricants; and (3) insurance from County operating budgets extending from FY 1997 -98 through
<br />FY2001 -02 indicates that while the total number of subsidized police cars has not risen dramatically,
<br />insurance and fuel costs account for most of the increased costs associated with H CPD' s subsidized
<br />vehi d e program.
<br />The number of budgeted subsi di zed vehi cl es rose from 352 i n FY 1997 -98 to 396 i n FY2001 -02. A ctual
<br />expendi tures for the H CPD mi I eage & auto al I owance program rose onl y sl i ghtl y over f i ve years, from
<br />$1,906,289 in 1997 -98 to $2,018,897 in 2001 -02. However, actual insurance costs rose dramatically in
<br />recent years, from $336,528 in 1999 -00 to $632,337 in 2001 -02. Additionally, actual fuel & lubricant
<br />costs i ncreased from $450,620 i n 1999 -00 to $593,809 i n 2001 -02.
<br />A f ve -year expendi ture summary i s provi ded bet ow:
<br />(1) Mileage & Auto Allowance
<br />Actual Expenditures
<br />1997 -98 - $1,906,289
<br />1998 -99 - $1,899,150
<br />1999 -00 - $1,974,402
<br />2000 -01 - $2,036,158
<br />2001 -02 - $2,018,897
<br />(2) Fuels & Lubricants
<br />Actual Expenditures
<br />1997 -98 - $ 515,083
<br />1998 -99 - $ 437,051
<br />1999 -00 - $ 450,620
<br />2000 -01 - $ 615,781
<br />2001 -02 - $ 593,809
<br />(3) Insurance
<br />Actual Expenditures
<br />1997 -98 - $ 345,000
<br />1998 -99 - $ 329,640
<br />1999 -00 - $ 336,528
<br />2000 -01 - $ 406,272
<br />2001 -02 - $ 632,337
<br />No. of Cars (for budget estimate)
<br />Expenditure & Percent Change from Prior Year
<br />352
<br />N/A
<br />372
<br />-$ 7,139
<br />- .04%
<br />376
<br />$ 75,252
<br />+.3.9%
<br />380
<br />$ 61,756
<br />+3.1%
<br />396
<br />-$ 17,261
<br />- .08%
<br />No. of Cars (for budget estimate)
<br />Expenditure & Percent Change from Prior Year
<br />352
<br />N/A
<br />372
<br />-$ 78,032
<br />- 15.1%
<br />376
<br />$ 13,369
<br />+ 3.1%
<br />380
<br />$ 165,161
<br />+36.7%
<br />396
<br />-$ 21,972
<br />- 3.5%
<br />Cost Per Insured Car
<br />Expenditure & Percent Change from Prior Year
<br />365 cars @ $1,050.00
<br />N/A
<br />372 cars @ $1,020.00
<br />-$ 15,360
<br />- 4.5%
<br />376 cars @ $ 994.31
<br />$ 6,888
<br />+ 2.1%
<br />380 cars @ $1,190.00
<br />$ 69,744
<br />+20.7%
<br />396 cars @ $1,620.41
<br />$ 226,065
<br />+55.6%
<br />9
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