Reviewing the 2024 Budget

After reviewing the 2024 budget projections for the Guemes Island Ferry, as well as a confirmation from Skagit County, Skagit County plans to continue to charge the Guemes Island Ferry for a county liability insurance policy through the Washington County Risk Pool *(WCRP) that all ferry and ferry systems are excluded from according to the policy. In 2022, the ferry insurance expense increased from the planned $123,990 (which is the premium for the Marine Policy) to $572,000. This was created from the county’s decision to charge the ferry with a portion of the WCRP premium based on claims-our claims totaled $5,600 from four fender benders. These were not paid for through either the WCRP (again, because the ferry and ferry systems are excluded) nor the Marine Policy (well below the deductible).

I reviewed how the county has distributed this insurance cost going back to 1998 and it wasn’t until February of 2023 that it was decided to charge this “expense” to the ferry. The only additional expense that should have been charged to the ferry was the actual $5,600 expense that was incurred.

In 2023, the ferry insurance expense budget was $124,000. That number is expected to go up to an unknown number depending on how the Board of County Commissioners(BOCC) allocates insurance expenses for 2023. It could be anything. The county has acknowledged they will be looking to make changes in how the insurance is allocated, but what that equates to in additional expenses for the ferry is unknown.

The 2024 ferry insurance expense budget is $272,000.

Besides continuing to be charged for a policy that cannot benefit the ferry, according to the policy’s own guidelines, the Guemes Island Ferry has been subsidizing the four Sheriff Department boats in the Marine Policy. In 2022, the ferry paid $123,990 of a $130,853 marine policy to Gallagher Marine. $6,863 was allocated to the Sheriff Department for their four vessels. Yet the actual itemized breakdown of charges to the Sheriff Department for their marine insurance came to $12,676. This does not include a percentage of the overall excess liability that the Sheriff Department vessels benefit from and the ferry pays for. The irony is that the Sheriff Department boats all DO qualify to be covered under the WCRP policy because they are under the 49’ maximum length requirement. Also, because the Sheriff Department boats are part of the Boater Safety Program, they can expense part of their insurance cost back to the Boater Safety Program.

The Board of County Commissioner’s notes for the upcoming budget meeting indicate they are looking to purchase additional emergency watercraft for the county. Based on the current allocation of the Marine Policy, we can anticipate the insurance premiums to go up even more for the Guemes Island Ferry - as they have projected for 2024.

 Skagit County has decided that it is fair for the ferry to pay for insurance premiums it can’t benefit from and pay for premiums that benefit other Departments in the county. What does this mean? It means higher fares.

If we take this analysis one step further, it also means the additional $448,000 2022 manufactured insurance expense also negatively affected the County Road Fund as any shortfalls between ferry revenues and expenses are largely paid for by the County Road Fund. This is the same fund that Skagit County has repeatedly claimed is desperately short of funds to complete much needed projects. The $448K created expense not only increased our fares, it took $448k away from road projects throughout the county when it didn’t have to.

Cindy Kamp

Guemes Island Homeowner/Property Owner

• *Washington County Risk Pool “2022-2023 Memorandum of Liability Coverage”
• 5. EXCLUSIONS: This liability coverage does not apply to: (Page 2)
• D: Watercraft Liability arising out of ownership,maintenance or use, including loading and unloading, of watercraft over forty-nine (49) feet in length. (Page 4)
• G: Certain Municipal Activities. Liability arising out of:
• 3. Ferry Systems (Page 4)