Patrons of the Coffeyville School District may be faced with a tax increase if a dispute between the school district and City of Coffeyville is not worked out soon.  The Board of Education met in a special session today to discuss a recent letter to the district by Coffeyville City Manager Mark Hall saying the city would no longer make payments to the school district from excess electric utility funds under an agreement made in 2002.

Under that agreement the city pledged funds to the school district to meet financial obligations under a school bond election in 2002.  Superintendent, Dr. Craig Correll says the elimination of the payments by the city leaves the school district short on it’s budget.  The agreement was considered innovative at the time for it’s cooperation between the city and school district to relieve the burden on taxpayers.

In his letter to the school district City Manager Mark Hall said “no could have predicted how different things would look today, than they did 17 years ago” when the agreement was executed.  The letter went on to say “the City’s margin on electric revenues continues to be constricted while costs increase; the City has limited ability to increase rates.”  Hall could not be reached for comment this afternoon.

The school board moved to executive session today to discuss their options.