Manhattan Fire District Grapples with Surging Insurance Costs in Draft Budget

Manhattan Fire Protection District Meeting | October 2025

Article Summary:
The Manhattan Fire Protection District is facing significant increases in insurance premiums as it develops its next operational budget. In a draft presentation to the board, Chief Steve Malone reported that health insurance costs have risen by 16%, with workers’ compensation and potentially general liability insurance each expected to jump by 20%.

Fire District Budget Key Points:

• The draft operational budget includes a 16% increase in health insurance and a 20% increase in workers’ compensation insurance.

• The district’s general liability insurance could also increase by as much as 20%.

• The 2026 budget will need to account for $775,000 to replace two brush trucks.

• New station costs for furniture and signage will also be built into the operational budget.

MANHATTAN, IL – Sharp increases in insurance costs are presenting a significant challenge for the Manhattan Fire Protection District as it prepares its next budget, the Board of Trustees learned on Monday, October 20, 2025.

During a presentation of the draft operational budget, Fire Chief Steve Malone outlined several financial pressures facing the district. He reported that department health insurance premiums have increased by 16%, and workers’ compensation insurance has risen by 20%.

Furthermore, the district is anticipating another potential hike. “We asked our general liability insurance broker to research rates because that could increase 20% as well,” Malone told the board.

Beyond insurance, the draft budget must also account for major capital expenses. Malone noted that in 2026, the district plans to spend an estimated $775,000 to replace two brush trucks. Costs for outfitting the new fire station, including furniture and signage, will also be incorporated into the operational budget.