The Hays City Commission on June 12 authorized renewal of the city's 2025–26 property and liability insurance package in the amount of $590,944.

Kim Rupp, Director of Finance, told commissioners the city completed a reappraisal after construction‑cost increases since 2018 and that insured values rose substantially: buildings and contents increased by roughly $12.6 million and $12.1 million respectively, vehicles rose about $1.9 million to account for new police vehicles, and equipment and other property were adjusted to reflect recently added items. "This reappraisal has corrected that," Rupp said.

Rupp and pool representatives noted the renewal reflects three main drivers: (1) rate adjustments after a high loss ratio for the pool, (2) updated insured values from the reappraisal, and (3) tougher market conditions that can produce higher deductibles or percentage deductibles. The city's pool experienced more than $3,000,000 in storm‑related claims in 2021 and 2024, which Rupp said resulted in a 244% loss ratio. That experience, she said, pushed the city toward a renewal increase of about $136,000 (roughly 30%). Rupp said some deductibles were increased at renewal, including a property deductible that moved from $25,000 to $50,000.

Rupp noted benefits provided by the pool (NPR), including complimentary legal services, Lexipol policy tools used by the police department and on‑site risk management visits. She also said the city will put its insurance package on the open market next year and explore self‑insurance or hybrid models.

Commissioner Cunningham asked how many years of lower claims would be needed to see premium relief; Rupp said claims begin to fall off after about three years and that the 2021 claims should be rolling off the calculation in the next renewal cycle. Commissioners asked staff to continue exploring market options and self‑insurance structures.

A motion "to authorize the city manager to renew the 2025–2026 property liability coverages package in the amount of $590,944 to be funded from the intergovernmental insurance line items" was moved by Commissioner Cunningham and seconded by Commissioner Barrack. The motion passed 4‑0.

Rupp recommended continued review of claims, department repairs and possible self‑insurance approaches to limit future premium pressure.