Coffeyville commission approves first reading to split electric rate increase: 2% in July, remainder in January

The Coffeyville City Commission voted to approve the first reading of Ordinance G-25-01 with an amendment to split a proposed electric-rate increase into two parts: a 2% rise to take effect in July and the remaining 5% to take effect in January.

Commissioner Hendricks opened the discussion by proposing an immediate 2% increase, saying, "I'm proposing we amend that we raise the electric rate by 2% as soon as possible," citing recent and projected wholesale cost increases and the utility's declining cash reserves. He framed the change as a partial implementation of a larger rate adjustment previously planned for January.

Chris Weiner, the city's executive director of electric, told commissioners the utility has been operating with declining cash reserves and that the proposed immediate 2% would generate an estimated $150,000 to $175,000 over the next six months. Weiner said the utility has spent down reserves in 2023 and 2024 and projects another deficit this year because of deferred capital needs and higher operating costs.

Commissioners pressed staff for context and alternatives. Commissioner Faulkner and others asked whether the commission should instead hold a work session to find budget savings before increasing rates. Commissioner Edwards voted against the amended first reading, saying he preferred a budget review and more detailed justification prior to increasing rates; other commissioners backed the split approach as a way to reduce the immediate impact on customers while beginning to restore reserve levels.

City Manager Brubaker and Director of Finance Martin Cummings confirmed staff would produce additional materials for the second reading, including FAQs and bill infographics. Cummings said staff would provide the commission with the draft mailer and the materials they planned to put on the city website before the next meeting.

The motion to approve the first reading of the ordinance as amended passed on a roll call vote with Commissioner Edwards opposed and Commissioners Hendricks, Faulkner, Van Oster and Mayor Maples voting in favor. The commission directed staff to prepare the ordinance language for the second reading, public information materials and a mailer for utility bills informing customers about the July change and the January adjustment.

The commission and staff reiterated that this action starts a phased approach rather than a single, larger increase in January. Staff said they would provide more detailed modeling of monthly bill impacts and an updated long-term schedule of rate adjustments for future meetings.