Coffeyville commission adopts FY2026 budget at revenue-neutral rate

The Coffeyville City Commission on Sept. 23 adopted the city's fiscal year 2026 budget by ordinance and confirmed it would not exceed the revenue-neutral mill rate.

Director of Finance Martin Cummings told the commission the city will keep the mill levy at the revenue-neutral rate of 25.4 mills, meaning the city itself will not increase the property tax rate this year. "We are proposing that the city not exceed revenue neutral rate this year," Cummings said, noting the commission had earlier contemplated a levy near 28 mills but would not pursue that increase.

The public hearing and staff presentation laid out an approximate citywide spending authority of $103,800,692 for 2026 and described two main drivers: changes in accounting treatment for certain reserved funds (which reduce the budget authority shown) and planned capital and personnel costs. Cummings explained the accounting change that now records some sales-tax-dedicated revenues directly in their target funds rather than routing them through the general fund, and he said that adjustment accounts for roughly $5 million of the difference from last year's approved budget.

Commissioners and staff discussed revenue sources and enterprise funds. Cummings and other staff noted that enterprise operations (electric; water and wastewater) must cover day-to-day service and the long-term maintenance and replacement of aging infrastructure. Staff described a modest projected deficit in the electric fund (about $1.3 million estimated) and said utility rates and other steps may be adjusted in coming months to address infrastructure and operational needs.

Commissioners also reviewed the relationship between the city's mill rate and other taxing authorities. Cummings and other commissioners reminded listeners that while Coffeyville would hold its mill levy flat, total property tax bills can still rise if the county, school district or other taxing bodies increase their levies or if property valuations increase. The director said residential property valuations in Coffeyville rose to about $67.1 million from roughly $63 million the prior year, a change staff said is roughly a 6% increase.

After the hearing, Mayor Maples moved and Vice Mayor Van Oster seconded final passage of Ordinance S-25-08, adopting the FY2026 annual budget "without exceeding the revenue neutral rate" and appropriating amounts in each fund. The motion passed with the recorded ayes of Commissioner Faulkner, Vice Mayor Van Oster, Commissioner Hendricks and Mayor Maples; one commissioner was absent.

The commission also discussed a procedural change: adopting the budget by ordinance in a single final reading (allowed by statute) so the city can include appropriation language and make more frequent payments required by time-sensitive obligations such as power purchase agreements. Staff said regular reporting of payments made since the last meeting would continue so commissioners can review expenditures.

The ordinance vote follows multiple work sessions and staff time to prepare the budget; commissioners and staff said they will continue to monitor enterprise fund health, finalize a wage-study outcome during union negotiations, and return to the commission if rate or other revenue adjustments are needed.

Votes at a glance Ordinance S-25-08 (adopt FY2026 budget without exceeding revenue-neutral rate): Motion by Mayor Maples; second by Vice Mayor Van Oster; Ayes: Commissioner Faulkner, Vice Mayor Van Oster, Commissioner Hendricks, Mayor Maples; Outcome: approved.

What's next: Staff said it will continue refining personnel costs tied to an ongoing wage study and bring any recommended rate or policy changes to future meetings for commissioner consideration.