Council adopts change to municipal cost index timing for utilities; schedules public forum on rate changes

Baldwin City Council voted to adopt Ordinance 15‑30, moving the effective date for municipal cost index (MCI) adjustments on utility rates from Jan. 1 to Feb. 1. City staff said the change gives the council a full prior‑year data set when considering automatic MCI adjustments and allows for clearer public communication before new rates take effect.

Russ, a city staff member in the planning/budget function, told the council the ordinance does not change the MCI mechanism itself but shifts the start date so adjustments begin Feb. 1. "That way, the Council as a whole can look at the full fiscal year from January through December and then make adjustments from there," staff said.

Council discussion noted the example MCI of 2.9% and the need to track reserves before deciding on any additional rate increases. Staff also reported a reported pass‑through cost from Lawrence for water supply approaching 8.9% that would be passed through to Baldwin City customers; Russ said that figure reflected supply costs only and did not include any markup.

To give residents time to review the changes, the council agreed to schedule a public forum to explain proposed adjustments and solicit feedback. Staff proposed a tentative forum at 6 p.m. on Tuesday, Feb. 3, and to include notices in utility bills, the city website and social channels.

The ordinance was adopted after the required roll call for ordinance measures. Councilors said they will return with final rate proposals at the next meetings after auditors close the 2025 year and staff analyze reserve positions.

Next steps: staff will publish forum notices, prepare bill insert flyers and present detailed rate scenarios for council review at the next meeting.