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Cowlitz County finance staff warn of rising insurance costs, budget transfers to cover claims
Summary
County finance and risk management staff told commissioners they face higher premiums from the county's risk pool, ongoing liability claims tied to annex water damage, and upcoming policy updates for music festivals; staff outlined training and newcomer outreach plans.
Kathy Funk Baxter, Cowlitz County finance director, and Shelley Pierce of risk management told the Board of County Commissioners that insurance premiums and claims are pushing the county's budget and will require transfers and future amendments.
The presentations focused on the county's internal service funds and workers' compensation accounts. Funk Baxter said the county budgeted $3,300,000 for goods and services in the internal services account and has collected about $3,000,000 so far; miscellaneous revenue was budgeted at $50,000, with $12,538 received. On insurance and pooled services, staff listed a line-item budget of $22,800,000 and reported roughly $2,700,000 in expenses so far.
Pierce said the county expects another large premium increase next year. "When we paid in October of last year, it was like it was a 20% increase ... now they're estimating that January of '26, that bill will be 20 possibly 25% greater than that," she said.
Funk Baxter described transfers already made and planned: $550,000 was transferred back to the general fund last October for cash flow and $300,000 was moved to a liability-claims account to cover anticipated claims. She said the county will do a budget amendment to recognize expected reimbursement for the annex water-damage claim, adding roughly $140,000 to revenue once processed.
On claims handling, Funk Baxter explained the county's self-insured layers: "We pay any expenses on claims up to $100,000. On property, we're responsible for the first ... $5,000," she said, describing the county's deductible structure and noting legal fees can be included in that $100,000 self-insured portion.
Risk management highlighted training and outreach: Pierce said risk staff will join human resources at new-hire orientation so employees view risk management as a partner. She also summarized training completions in the county's NEOGOV and risk-pool courses, noting substantial year-to-year increases in completed trainings.
Pierce also told commissioners that an updated music-festival policy with revised insurance and liability requirements is now in the agenda queue and will be presented to the board at a future meeting.
Discussion: commissioners asked whether other counties were seeing similar premium increases; staff replied that most counties are seeing comparable percentage rises. Commissioners also asked for follow-up on the filing period for juvenile claims; Pierce said she would look into statutory timelines and report back.
No formal action or vote was taken on these items at the meeting; staff said they will return with a budget amendment for the annex reimbursement and will present the music-festival policy update when ready.
