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Year 2022 in Review: The Rainy Day Times Two

Thisyear,MotherNatureshowedus her awesome destructive power in theformoftwomassiveconvective storm events: a May 12 east river derecho followed exactly one monthlaterbyaJune12westriver hailstorm. These two storm events impacted 80 SDPAA Members from across the state, resulting in property losses or damages of an estimated$11million.

The “rainy day” arrived times two this year. SDPAA Members were preparedto“weather”thesestorms thanks to decades of financial prudence by the SDPAA’s Board of Directors and their 452 fellow local government Members.The SDPAA maintained a sufficient net position tocovertheselossesaswellasmeet allotheroutstandingobligations.

Besides local governments, other people and entities within these communities suffered similar losses. These losses placed great stress on the private insurers who covered these same storms for others, testing the financial health oftheirorganizations.Someprivate insurers were in danger of closing their doors because of these two storm events. Thanks to a solid net position, SDPAAMembers had sufficientfundsfortheserainydays.

The costs from such storm events are both immediate and long term. The SDPAA Board of Directors authorizedtheuseof$1.5millionof the SDPAA’s net position to lessen the impact of rising reinsurance premiumsonSDPAAMembers.The SDPAA Board can make targeted uses of net position to uphold the SDPAA’s mission to provide outstandingcoveragesataffordable, stable rates to its local government MembersinSouthDakota.

TheSDPAAenjoysasolidfinancial footingandisnationallyrecognized asapremierpublicentitypoolforits governanceandfinancialpractices. TheSDPAA’ssolidfinancialfooting is confirmed each year by an independent financial audit. The last eight years of those audits are posted on the SDPAA’s website at sdpaaonline.org under the “About Us” tab, then click on Financial & Board Information. The links to the last eight years of the SDPAA’s Annual Reports are also posted on thatwebpage.

In 2022, the SDPAA Board of Directors witnessed the departures of Cindy Brugman and Yvonne Taylor.

Cindy is the Auditor for Codington County and has been honorably servinghercommunityforoverthree decades.Shealwayshasasmileon herfaceandahelpfulsuggestionat everyturn.Itwasapleasuretowork with her these last several years.

Yvonne and I met as interns during the 1991 SD Legislative Session when we were just beginning our careers in public service. Her contributionstolocalgovernmentare immeasurableandweallbenefitted fromherinsights.Wewillmissboth these great public servants! We expect Yvonne to be a “failure” in her retirement by continuing to servelocalgovernmentsinanother capacity.

This past summer, Jerry Krambeck retired from the SDPAA after two decadesofservicetoourMembers. Jerry discovered over the summer heisafailureatretirementandhas rejoinedtheSDPAAteamonaparttime basis. He wanted to continue assistingSDPAAMemberswiththeir publicservicemission.Wewillreap therewardsofhisfailure!

Ifyourorganizationwantstoreapthe rewards SDPAA membership can provide, please contact the SDPAA at800-658-3633option2orbyemail at sdpaa@sdmunicipalleague.org. to inquire about all the services available to SDPAA Members. ■

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