During Monday’s Chanute City Commission meeting, commissioners voted to approve an electric utility rate increase that will go into effect later this year.
In a letter released to the public via social media on Wednesday, Aug. 13, City Manager Todd Newman states: “At Monday night’s City Commission meeting, the Governing Body approved a $.0095 increase to the electric utility. The electric increase is estimated to be 6.5% on the average monthly electric bill. The anticipated revenue is to help offset the 2% increase to the 2026 General Fund budget and help fund new radios for the Police and Fire Departments.
The radios are part of the Capital Improvement Project list for 2026 and estimated at $2.2 million.”
Chanute Fire Department shared this letter on their Facebook page and added that the radio updates were important. In CFD’s post, they said that many of the department’s radio units are over 13 years old, which is “well past their expected service life.”
They said that currently, there are dead zones, static, and issues with dropped transmissions, which make coordination efforts more difficult and unsafe.
CFD also noted that the new system will connect to a state-wide radio network, which will improve interoperability between other regional agencies. This new system is also expected to have a clearer, stronger signal and a larger service area.
“Clear, instant communication saves lives — whether it’s a structure fire, severe weather, or a critical police call,” CFD wrote.
In the wake of this utility increase, some citizens have voiced questions and personal observations online in response to Newman’s letter.
It was noted that in 2024, the Chanute Police Department was listed among several municipalities where Senator Jerry Moran requested congressionally directed spending for police radio and technology upgrades. The request amount was $140,000, which was awarded through the COPS Office Technology and Equipment Program. Many wanted to know why more upgrades were needed if they recently received federal funds for radio improvements.
Others questioned whether or not the city was allowed to raise utility rates to cover radio upgrades. Some individuals posted screenshots of AI overviews, citing that the Kansas Corporation Commission regulates electric, natural gas, liquid pipeline, and telecommunications public utilities, stating that rate changes and the terms of service would need to be approved by the KCC, and that using utility rate increases to fund radios would be an improper diversion of funds.
However, in the actual state statute the AI overview cited, it states that most municipalities do not fall under KCC jurisdiction.
According to Kansas Statutes: “The KCC generally does not have authority to regulate municipal utilities or electric cooperatives.”It also states, “Municipal electric utilities are operated and managed by the governing body of the municipality.”
Some also questioned if there were other ways to fund such a project, such as another sales tax question.
However, it was also brought up in these online discussions that in 2023, the commission voted to eliminate its property tax levy, only keeping the levy required by statute and city ordinances for the Chanute Public Library.
It was reported at that time that this move would decrease the city’s tax collection by over $2 million annually. At the same time, a utility rate increase of 16% was announced.
Back in August of 2023, Mayor Jacob LaRue said, “Property owners cannot control how much they’re taxed on their property. A utility customer can make changes to their own usage.”
It is estimated that someone who owns a $100,000 home would save $400 a year from this property tax change.
Many citizens shared that they were already struggling to afford utility bills ranging from $500 to over $800, and wondered how they or their neighbors would afford another increase.
The Chanute Tribune has reached out to the commissioners and City Manager Todd Newman to address these questions, but no response was received by press time.
During Monday’s discussion, Vice Mayor Tim Fairchild questioned why the Chanute Public Library received additional mills and said that, according to a 2024 financial report, it seemed like there was too much cash. He also asked similar questions of the Chanute Recreation Commission. It was noted by Commissioner Tim Egner that the City of Chanute has no control over what the Chanute Recreation Commission sets, as it is a separate entity. City Attorney David Brake said a review of existing ordinances could be done, and financial records from the library could be requested ahead of the 2027 budget sessions.
In other business, commissioners conducted a public hearing for the 2026 municipal budget and tax rate. There were no public comments made during the hearing.
The budget sets the maximum spending limit for the City of Chanute. For 2026, that limit is $65,445,989; $2,632,899 higher than the 2025 limit of $62,814,090. The property tax levy is set at 7.572 mills; less than the 2025 proposed levy of 7.896.
Chanute’s preliminary assessed valuation from Neosho County Clerk Chasity Foreaker is $71,336,997. According to this assessment, the valuation of one mill should be approximately $71,337, which is $1,304 less per mill than last year’s mill value of $72,640,694. The estimated 2026 Revenue Neutral Rate for the city is 7.572 mills, which is even with the Neosho County provided rate of 7.572. The budget and revenue neutral rate was adopted and certified.
Commissioners also approved a resolution to issue multifamily housing bonds to Chanute Housing LLC for the subdivision in progress behind Walmart. These bonds will allow the property and services purchased or used in conjunction with the construction of the project to be sales tax exempt, according to the resolution.
The next Chanute City Commission meeting will be held on Aug. 25, at 6:30 p.m. in the Memorial Building. Meetings are also livestreamed to the City of Chanute website and Facebook page.
