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CSD Pool Financial Results 2016: A Stellar Year

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Last year, we reported that the Pool was better off in 2015 than it had been in 2014. That was certainly true. If we were to make a similar comparison today, it would be an understatement. As in 2015, there were relatively few natural disasters in 2016. There were no massive wildfires consuming special district operations, no brutal hailstorms, no severe floods, and no swarms of tornadoes. This led to the most stellar performance the Pool has ever had.

Our membership rose to nearly 1,400 districts—a fact that speaks well of the Pool, the economy, and of the solid, collective strength of our members. The Pool currently sits in a very enviable financial position. We added another $4.5 million to surplus, which pushes much closer to the Board of Directors’ surplus goal of $30 million and cements our financial strength.

That means a couple of things. First, we are very well suited to handle any bad weather or bad luck in the stars for the next few years. This is especially important considering that the Pool is now covering a lot more property, a lot more members, and a lot more employees. Those funds are critical in ensuring any claims against those risks get paid. Ultimately, the Board’s goal is to continue to be more financially secure than any of our competitors.

This great performance also means that we can step up our constant efforts to give back to members. We are analyzing increases in the amount of money allocated to the Safety and Loss Prevention Grant Program, expanding our programs and services, rolling out new discount and credit programs; and most importantly, this will allow us to look at lower rates in 2018.

In the past when we had less of a good showing, as seen in the table below, we did not respond by raising rates astronomically. Instead, we increased them modestly over time, allowing the Pool and its members to absorb those changes gradually. Fortunately, things are light-years better today, and without any district needing to face a gigantic and unexpected increase. Similarly now, we will respond judiciously to this great forecast.
We hope the next few years will be equally as exciting and prosperous for the Pool and all of its members. Unfortunately, no one knows what lies ahead. There could be a spate of bad weather around the corner, a rash of costly workplace injuries, or even a significant cyber attack. Rest assured the Pool will be ready to chart new courses through those perils well into the future.

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