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City to get reimbursement

POSTED: June 5, 2013 4:00 a.m.

The city of Dawsonville will be coming into a sum of money due to a billing error found in its favor.

During its April 24 work session, the city council reviewed alternate property and liability insurance providers. At the time of that work session, the city's insurance was through the Georgia Municipal Association provider Georgia Interlocal Risk Management Agency, or GIRMA.

While reviewing the costs, the city found that the agency was charging more than $88,000 for coverage, which was drastically higher than other area providers. GIRMA competitors reviewed by the city council offered rates from $37,000 to $75,000.

However, while comparing prices, the city found that their rates from GIRMA were inaccurate.

"Last month, we looked at a proposal presented by an independent insurance provider, one not part of the GIRMA network provided by the GMA," said Dawsonville Mayor James Grogan during the council's May 6 called meeting. "After reviewing it further, we found that a mistake had been made by GIRMA."

The mayor assured the council and the residents in attendance that the mistake had since been rectified and that the city would be receiving overpaid funds back from the agency.

"They are going to pay us back $105,970," Grogan said. "They are going to issue a check immediately for $15,571 and then pay us the remaining $90,000 over the next three years [at] $30,000 a year."

Since the mistake has been found, GIRMA has reduced the price of the city's payment down to less than $35,000.

Grogan said there were no hard feelings toward the company since the mistake was found and reparations were made.

"We've decided to stay with GIRMA because we've significantly reduced our premiums and they will be giving us back the overpaid amount," he said.

 

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