BLOOMINGTON - How RimCo keeps Bloomington insured for such things as a worker getting hurt fixing a snowplow or someone tripping on a city sidewalk was explained to the City Council Monday evening.

And while one alderman said the presentation addressed many questions residents and the council have asked about the company, a second alderman wants to see exactly how much the city saves - if it saves any at all - by being self-insured through RimCo.

RimCo, a not-for-profit, Bloomington-based company, works with six municipalities, including Peoria, East Peoria and Grand Haven, Mich., on reducing liability and helping their clients find insurers.

"We've taken the tried and true techniques of the insurance industry and we are using it for the cities' benefit instead of letting an insurance company use those techniques to make money off of the cities," said RimCo President Jack Carroll.

"The presentation has put a lot of myths to bed," said Ward 8 Alderman John Hanson.

RimCo, which was started in 2002, is independent of the city although Mayor Steve Stockton and City Manager Tom Hamilton serve on the board.

But the fact that the city has never put its insurance needs out for bids does not sit well with Ward 4 Alderman Judy Stearns.

"I think taxpayers would agree for the entire program to be put out for RFP's (request for proposals) so we can be sure we are getting the best deal," Stearns said.

Stockton, a former vice president for State Farm Insurance Cos., replied, "That can be done, but I don't think the comparison is even going to be close."

Because of the variety of insurance risks a city carries, not many insurers wanted the city's business, Hamilton said. That left the city going to whatever insurer they could find and spending about $4 million to $5 million annually before it became self-insured, he said.

Now, the city puts in about $2.5 million a year and has some control over the money, which is invested and used to pay claims.

In 1995, a Bloomington city ordinance created Central Illinois Risk Pooling Authority. It has its own board and can only oversee the insurance for the city of Bloomington.

RimCo was started subsequently to oversee CIRPA and expand to take on other client communities. Carroll said that lets RimCo leverage better rates for all of its clients.

Also, RimCo can serve as a consultant on risk management and insurance- much like what it is doing for the cities of Peoria and East Peoria.

RimCo helps CIRPA oversee the city's insurance assets of about $7.5 million. Before the city began CIRPA, the city's insurance fund was more than $5.8 million in debt.

The money the city puts into CIRPA and RimCo is invested and managed by the National Bank of Indianapolis. That bank charged the lowest commission out of a number of banks in Illinois, Indiana and Michigan that RimCo contacted for proposals, Carroll said.

Critics have asked why the money isn't managed locally.

Currently, RimCo is in negotiations with about four banks- at least one local-for new investment proposals, Carroll added.

No one who serves on the board of RimCo is paid, Carroll said.

Dixie Mills, retired dean of Illinois State University's College of Business, is president of RimCo's board. The vice president is Vern McGinnis, retired vice chairman and senior vice president of Growmark.

In total RimCo has a staff of about five people and the total assets is about $50,000, Carroll added.