Insurance premiums dip; Water & Light flags possible 6–7% BPA cost increase

Two informational presentations preceded council votes during the June 9 meeting.

Ryan Hartsell of Hagen Hamilton Insurance presented the annual insurance stewardship report, noting a roughly 6 percent decrease in the city’s insurance premiums and a favorable claims profile in the CIS pool (a low five‑year average claim and low loss ratios). Hartsell said the city’s total insured value sits near $270 million, the CIS aggregate deductible position remains low so far this year, and that the most frequent claim type continues to be sewer‑related incidents. He also reported that workers’ compensation claims were steady and that cyber coverage remains stable with the first investigative expenses reported this year being under $10,000.

John Dietz, general manager of McMinnville Water and Light, gave a utilities update emphasizing a significant capital program and near‑term risks. Dietz said the utility’s FY26–27 budget shows ~ $55 million in total revenues and expenses and that a building expansion (~$30M) is being financed from reserves with groundbreaking imminent. He flagged potential power‑supply cost increases tied to litigation affecting Bonneville Power Administration (BPA), estimating a possible 6–7 percent power supply cost increase that could begin October 1 and that could mean several million dollars of additional cost for the utility over the FY26–28 period if market purchases rise to replace lost hydro generation.