Jun 04, 2024 City Council Meeting

[CALL TO ORDER]

[00:00:02]

PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

JENNIFER, WOULD YOU PLEASE CALL ROLL? THANK YOU, MAYOR.

COUNCIL MEMBER KARLIN.

PRESENT. COUNCIL MEMBER EITERICH.

PRESENT. COUNCIL MEMBER CHARLTON.

HERE. COUNCIL MEMBER NICKS.

HERE. COUNCIL MEMBER ARROYO.

HERE. COUNCIL MEMBER WILLIAMSON.

PRESENT. COUNCIL MEMBER DENNY.

PRESENT. COUNCIL MEMBER HERRON.

PRESENT. MAYOR SAYERS IS PRESENT AND PRESIDING.

THANK YOU. BEFORE YOU ARE THE MAY 21ST CITY COUNCIL MEETING MINUTES FOR APPROVAL.

[APPROVE MINUTES]

SECOND BY MELANIE. ALL IN FAVOR? MINUTES ARE APPROVED.

JENNIFER ANY MODIFICATIONS THIS EVENING? NONE THIS EVENING. THANK YOU.

[PROCLAMATIONS]

I KNOW THAT WE HAVE GUESTS FOR EACH ONE, SO I'LL INVITE OUR GUESTS DOWN, READ THE PROCLAMATION, TAKE PICTURES, AND WE CAN MOVE ON WITH EACH ONE.

FIRST WE HAVE PAT THOMAS FOR LENEXA BARBECUE MONTH.

VERY SPECIAL TIME IN JUNE.

HOW ARE WE DOING NOW? THERE WE GO.

WHEREAS LENEXA HELD THE FIRST GREAT LENEXA BARBECUE BATTLE IN 1982, AT THE URGING OF FOUNDERS PAT DALTON AND ALAN UHL, THANK YOU.

WHEREAS IT WAS DESIGNATED BY THE STATE CHAMPIONSHIP, OF KANSAS, BY GOVERNOR JOHN CARLIN ON APRIL 27TH, 1984.

AND WHEREAS THIS EVENT PROVIDES WHOLESOME RECREATION AND COMPETITION FOR BARBECUE ENTHUSIASTS, AND WHEREAS HUNDREDS OF LENEXANS ARE ABLE TO VOLUNTEER THEIR TALENTS TOWARDS MAKING THE THE CONTEST A SUCCESS.

AND WHEREAS THIS HAS BECOME AN IMPORTANT EVENT TO THE CITY OF LENEXA FOR THE ENJOYMENT OF ITS RESIDENTS AND VISITORS, AND WHEREAS THE CHAMPIONSHIP CROWNS SEVEN MEAT CATEGORY CHAMPIONS INCLUDING BEEF, PORK RIBS, CHICKEN SAUSAGE, BEEF STEAK AND MISCELLANEOUS AND ONE GRAND CHAMPION.

AND WHEREAS, THE 42ND GREAT LENEXA BARBECUE BATTLE WILL BE HELD JUNE 21ST AND 22ND, 2024.

AND WHEREAS THIS EVENT BRINGS THE CITY OF LENEXA SIGNIFICANT RECOGNITION AND IDENTIFICATION THROUGHOUT THE METROPOLITAN AREA, THE STATE OF KANSAS AND THE NATION, NOW I THEREFORE, JULIE SAYERS, THE MAYOR OF LENEXA, DO HEREBY PROCLAIM THE MONTH OF JUNE IN THE CITY OF LENEXA TO BE LENEXA BARBECUE MONTH.

ANYTHING YOU'D LIKE TO ADD? NO THANK YOU, MAYOR. OKAY.

YEAH. THERE WE GO.

[APPLAUSE] THANK YOU.

OF COURSE. NEXT WE HAVE JAE MOYER, WITH EQUALITY KANSAS FOR THE PRIDE MONTH PROCLAMATION.

AND WE HAVE A LITTLE SURPRISE FROM OUR COUNCIL FOR THE PHOTOS.

WHEREAS OUR NATION WAS FOUNDED ON THE PRINCIPLE OF EQUAL RIGHTS FOR ALL PEOPLE, AND SOME OF THE MOST INSPIRING MOMENTS IN OUR HISTORY HAVE COME FROM THE CIVIL RIGHTS MOVEMENTS THAT HAVE BROUGHT GROUPS FROM THE MARGINS AND INTO THE MAINSTREAM OF AMERICAN SOCIETY.

AND WHEREAS THE MOVEMENT TOWARDS EQUAL RIGHTS FOR LESBIAN, GAY, BISEXUAL, TRANSGENDER AND QUEER PEOPLE, THE STONEWALL RIOTS WERE A HISTORIC TURNING POINT IN NEW YORK CITY ON JUNE 28TH, 1969, WHEN LGBTQ CITIZENS ROSE AND FOUGHT AGAINST THE DISCRIMINATORY, CRIMINAL LAWS THAT HAVE SINCE BEEN DECLARED UNCONSTITUTIONAL.

AND WHEREAS LGBTQ PRIDE CELEBRATIONS TAKE PLACE ACROSS THE COUNTRY EVERY JUNE TO COMMEMORATE THE RIOTS AND TO RECOGNIZE THE IMPACT THAT LGBTQ PEOPLE HAVE HAD ON HISTORY LOCALLY, NATIONALLY AND INTERNATIONALLY.

WHEREAS JUNE IS CELEBRATED AS LGBTQ PRIDE MONTH NATIONWIDE, AND WHEREAS, LENEXA WELCOMES PEOPLE OF ALL SEXUAL ORIENTATION AND GENDER IDENTITIES, AND WHEREAS EVERYONE SHOULD BE ABLE TO LIVE WITHOUT FEAR OF PREJUDICE, DISCRIMINATION, VIOLENCE AND HATRED BASED ON RACE, RELIGION, GENDER IDENTITY OR SEXUAL ORIENTATION. NOW THEREFORE, I, JULIE SAYERS, MAYOR OF LENEXA, DO HEREBY PROCLAIM THE MONTH OF JUNE IN THE CITY OF LENEXA TO BE LGBTQ PRIDE MONTH. ANYTHING YOU'D LIKE TO ADD ABOUT EQUALITY KANSAS? YES. OKAY.

I JUST WANTED TO SAY EQUALITY KANSAS IS THE STATEWIDE ORGANIZATION HERE IN KANSAS FIGHTING DISCRIMINATION AGAINST THOSE BASED ON THEIR SEXUAL ORIENTATION AND GENDER IDENTITY.

I'M ONE OF THE LEAD ORGANIZERS HERE IN JOHNSON COUNTY, AND WE DO MEET UP ONCE ON THE FOURTH WEDNESDAY OF EVERY MONTH.

SO LOOK OUT ON OUR FACEBOOK PAGE FOR THAT.

BUT I WANTED TO SAY THANK YOU TO MAYOR SAYERS AND FOR THE CITY COUNCIL, IT'S CLEAR NOT JUST WITH THIS PROCLAMATION, BUT WITH EVERYTHING THAT YOU DO, THAT YOU REALLY DO CARE

[00:05:07]

AND I THANK YOU FOR THAT SO.

THANK YOU. THANK YOU VERY MUCH. [APPLAUSE] THANK YOU.

[INAUDIBLE] YOU WANT SOME WITH YOUR PHONE? YEAH. IF YOU DON'T MIND, I'LL DO ONE WITH THE SUNGLASSES AND ONE WITHOUT.

OKAY. WE'LL HOLD THAT AROUND THE CORNER.

ONE WITH SUNGLASSES.

AND ONE WITHOUT.

THANK YOU. OKAY. THANK YOU VERY MUCH FOR COMING.

THANK YOU. I'LL SEE YOU SOON.

SEE YOU. OKAY.

AND LAST BUT NOT LEAST, WE HAVE KATIE MANGELSDORF, WHO'S ONE OF OUR RESIDENTS, AND ZACHARY MALLORY, WHO IS A SURVIVOR.

REQUESTED THE NATIONAL GUN VIOLENCE AWARENESS PROCLAMATION.

AND WE'LL, OF COURSE, ALLOW ALL OF YOU UP FOR PHOTOS AFTERWARDS.

HI. WHEREAS EVERY DAY, MORE THAN 120 AMERICANS ARE KILLED BY GUN VIOLENCE, ON AN AVERAGE, THERE ARE MORE THAN 18,000 GUN HOMICIDES EVERY YEAR. AND WHEREAS KANSAS HAS 456 GUN DEATHS EVERY YEAR, WITH A RATE OF 15.7 DEATHS PER 100,000 PEOPLE, KANSAS HAS THE 21ST HIGHEST RATE OF GUN DEATHS IN THE UNITED STATES, AND WHEREAS SUPPORT FOR THE SECOND AMENDMENT RIGHTS OF LAW ABIDING CITIZENS GOES HAND IN HAND WITH KEEPING GUNS AWAY FROM PEOPLE WITH DANGEROUS HISTORIES.

AND WHEREAS A TRIBUTE TO HADIYA PENDLETON.

IS THAT RIGHT? THANK YOU.

WHO WAS TRAGICALLY SHOT AND KILLED AT THE AGE OF 15, A GROUP OF HER FRIENDS DECIDED TO COMMEMORATE HER LIFE BY WEARING ORANGE, CHOOSING THIS COLOR BECAUSE HUNTERS USE IT TO ANNOUNCE THEMSELVES TO OTHER HUNTERS, AND AS A COLOR THAT SYMBOLIZES THE VALUE OF HUMAN LIFE.

AND WHEREAS WEARING ORANGE HONORS HADIYA AS WELL AS ALL VICTIMS OF GUN VIOLENCE AND THE LOVED ONES OF THOSE VICTIMS. WHEREAS ON JUNE 7TH THROUGH 9TH, 2024, PEOPLE ACROSS THE UNITED STATES WILL RECOGNIZE AND RAISE AWARENESS ABOUT GUN VIOLENCE ON WEAR ORANGE WEEKEND.

AND WHEREAS, WE RENEW OUR COMMITMENT TO REDUCE GUN VIOLENCE AND PLEDGE TO DO ALL WE CAN TO KEEP FIREARMS OUT OF THE WRONG HANDS AND ENCOURAGE RESPONSIBLE GUN OWNERSHIP TO HELP KEEP OUR CHILDREN SAFE.

NOW, THEREFORE, I, JULIE SAYERS, MAYOR OF LENEXA, KANSAS, DO HEREBY PROCLAIM JUNE 7TH IN THE CITY OF LENEXA TO BE NATIONAL GUN VIOLENCE AWARENESS DAY.

THANK YOU. YEAH. OF COURSE.

THANK YOU. SO GUN VIOLENCE LEAVES RIPPLING EFFECTS ON OUR COMMUNITIES.

WE SEE THAT EVERY SINGLE DAY.

I'M HONORED.

THANK YOU. AND THANK YOU TO THE CITY COUNCIL.

TRULY. AND I'VE TALKED WITH A COUPLE OF YOU, SO THANK YOU.

IT DOES NOT GO UNNOTICED THAT THE EFFORTS TO MAKE GUN VIOLENCE EVEN LESS OF AN ISSUE DOES NOT GO UNNOTICED IN THIS CITY, IN THIS COUNTY, AND IN OUR STATE. IT TAKES ALL OF US IN THIS ROOM TO MAKE THE DIFFERENCE AND BE THE DIFFERENCE.

IT TAKES ALL OF US.

SO I WOULD LIKE TO INVITE OUR GROUP UP TO TAKE THAT PICTURE.

THANK YOU.

MIC] READY? THANK YOU.

YAY. [APPLAUSE] THANK YOU.

[PRESENTATIONS]

GOOD EVENING, MAYOR AND COUNCIL, NATE BLUM WITH THE FINANCE DEPARTMENT.

I HAVE CHESTER MOYER HERE.

HE'S AN AUDIT PARTNER AT RUBINBROWN, OUR EXTERNAL AUDITORS, BEFORE HE PRESENTS.

I JUST WANT TO THANK HIM AND HIS TEAM FOR BEING GREAT TO WORK WITH AND VERY PROFESSIONAL.

I WANT TO SPECIFICALLY THANK MEGAN STERLING FOR LEADING THE AUDIT FROM THE FINANCE TEAM PERSPECTIVE AND THE REST OF THE FINANCE TEAM THAT'S HERE AS WELL.

SO WITH THAT, I'LL TURN IT OVER TO CHESTER.

I WOULD USE ARROWS.

[00:10:02]

IT'S GREAT TO BE HERE WITH YOU TO PRESENT THE RESULTS OF YOUR EXTERNAL FINANCIAL AUDIT.

SO I WORK FOR RUBINBROWN AND WE ARE AN INDEPENDENT ACCOUNTING FIRM, AND WE ARE PROVIDING AN OPINION ON THE FINANCIAL STATEMENTS OF THE CITY.

AND WE PERFORM THAT UNDER GOVERNMENT AUDITING STANDARDS, WHICH IS A LEVEL OF AUDITING THAT'S EXPECTED FOR ORGANIZATIONS THAT ARE GOVERNMENTS THAT'S IDENTIFIED BY THE OFFICE OF MANAGEMENT AND BUDGET IS THE ONES WHO PROMULGATE THOSE STANDARDS.

JUST TO BEGIN, THERE IS A LOT OF COORDINATION THAT HAPPENS WITH THE OUTCOME OF THIS AUDIT.

AND SO THIS IS SOME OF THE TEAM THAT WE BROUGHT FORTH TO PERFORM THE AUDIT.

AND OF COURSE, MANY OF THE MEMBERS OF MANAGEMENT IN THE ACCOUNTING FUNCTION AND FINANCE FUNCTION ARE HERE TONIGHT.

AND OF COURSE, ASSISTED GREATLY IN THAT ENGAGEMENT.

THE AUDIT PROCESS ITSELF DOES REQUIRE COORDINATION OVER A LONG PERIOD OF TIME.

IT TOOK US ABOUT EIGHT MONTHS TO COMPLETE THIS AUDIT.

SO WE START IN THE FALL.

AND THEN THE MOST INTENSE TIME, I WOULD SAY, WITH THE AUDIT HAPPENS IN MARCH, IN THE MAY TIME FRAME, SO THAT THE MOST RECENT MONTHS HAD THE MOST EFFORT.

BUT IT IS A PERIOD OVER A LONG PERIOD OF TIME THAT WE ARE WORKING ON THIS AUDIT.

SO IN YOUR PACKET YOU HAVE A FORMAL AUDITOR COMMUNICATIONS DOCUMENT.

THAT'S A FORMAL REPORT.

WHAT I'VE DONE IS HIGHLIGHTED THE ELEMENTS IN THIS EXECUTIVE SUMMARY FROM THAT THAT ARE REQUIRED COMMUNICATIONS TO YOU.

SO FIRST OF ALL I WANTED TO HIGHLIGHT THAT THERE WERE SOME KEY TRANSITIONS AGAIN IN THE FINANCE AREA THIS YEAR AND THOSE POSITIONS RELATIVE TO THE AUDIT AND FROM THE CITY'S FINANCE FUNCTION, WE OBSERVED TO BE A SMOOTH TRANSITION AND AN EXCELLENT EFFORT ON THAT PART.

WE DID ISSUE A CLEAN OPINION OR AN UNMODIFIED OPINION.

THAT'S THE HIGHEST LEVEL OF OPINION THAT WE ISSUE AS AUDITORS.

SO THAT'S THE END RESULT OF THE AUDIT WAS A CLEAN AUDIT.

WE DID HAVE ONE EMPHASIS OF MATTER IN OUR AUDIT REPORT.

THIS IS A STANDARD ITEM THAT WE EMPHASIZE WHEN THERE'S A NEW ACCOUNTING STANDARD THAT'S BEEN IMPLEMENTED BY AN ORGANIZATION LIKE THE CITY, AND THAT RELATED TO AN EFFORT THAT THE CITY PUT FORTH IN IMPLEMENTING SBITA, AS IT'S CALLED, SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS THAT ADDED ASSETS AND LIABILITIES TO THE CITY'S FINANCIAL STATEMENTS.

I WANT TO HIGHLIGHT THAT THERE WERE NO CORRECTED OR UNCORRECTED MISSTATEMENTS AS A RESULT OF THE AUDIT, SO THE INFORMATION THAT WE WERE PROVIDED DID NOT CHANGE DURING THE COURSE OF THE AUDIT. SO THAT IS GREAT CONFIDENCE IN THE CITY'S MANAGEMENT, FINANCE, MANAGEMENT, IN ORDER TO TO CONDUCT THE INFORMATION THAT WE NEEDED TO DO FOR THE AUDIT AND THE AUDITOR COMMUNICATIONS LETTER.

IF YOU LOOK AT IT IN DETAIL, THERE ARE JOURNAL ENTRIES INCLUDED IN THERE.

THOSE JOURNAL ENTRIES ARE PART OF THE PROCESS OF CONVERTING THE FINANCIAL STATEMENTS FROM A FUND BASIS TO A GOVERNMENT WIDE BASIS.

THAT'S WHAT THE MANAGEMENT PROVIDED TO US.

IT'S SIMPLY AN EFFORT ON OUR PART, JUST TO MAKE SURE THAT WE'RE MOVING ALONG WITH THE JOURNAL ENTRIES THAT THE MANAGEMENT'S PROVIDING DURING THE AUDIT TO GET THOSE GOVERNMENT WIDE FINANCIAL STATEMENTS SO THAT IT ISN'T AN INDICATION OF ANY ERROR OR ANY UNCORRECTED ERRORS THAT ARE IN THE FINANCIAL STATEMENTS.

THE NEXT ITEM I HAVE UP THERE IS A MANAGEMENT LETTER.

THAT'S SOMETHING THAT WE WOULD ISSUE IF THERE WAS A SIGNIFICANT DEFICIENCY OR MATERIAL WEAKNESS THAT WE OBSERVED IN THE INTERNAL CONTROL ENVIRONMENT AS A RESULT OF OUR AUDIT, AND WE HAVE NO MATTERS TO REPORT FROM THAT MANAGEMENT LETTER.

AND THEN YOU ALSO ENGAGED US TO PERFORM AN AUDIT OF THE FIREFIGHTERS RELIEF ASSOCIATION FOR THE CITY.

IT'S A MUCH SMALLER REPORT.

IT'S SPECIFIC FOR THE FIREFIGHTERS RELIEF ASSOCIATION.

THERE'S NO MATTERS TO REPORT WITH THAT AUDIT AS WELL.

SO THE AUDIT TAKES A LOT OF EFFORT, AND IT RESULTS IN A FINANCIAL STATEMENT THAT'S ABOUT 200 PAGES LONG.

AND THE SOMETIMES YOU SAY, WHAT DO YOU DO WITH THAT ONCE IT'S CREATED, BECAUSE YOU'RE WORKING OFTEN FROM A BUDGET PERSPECTIVE, YOU'RE OFTEN LOOKING AT THINGS FROM A QUARTERLY REPORTING AND THINGS.

BUT ONCE IT ALL COMES TOGETHER IN THIS FINANCIAL REPORT, WELL, WHAT WHAT MIGHT SOMEONE USE IT FOR ON THE EXTERNAL AN EXTERNAL PARTY TO THE CITY.

AND SO I PUT TOGETHER A FEW SLIDES JUST TO HIGHLIGHT WHAT IT MIGHT BE USED FOR.

SO ONE OF THE THINGS THAT THE FINANCIAL REPORT REPORTS IS ASSESSING, ALLOWING PEOPLE TO ASSESS THE NEAR-TERM FINANCIAL POSITION OF THE CITY. AND ONE OF THE WAYS TO HIGHLIGHT THAT IS WITH THE EXISTING RESOURCES THAT ARE AVAILABLE THROUGH THE UNASSIGNED FUND BALANCE IN THE GENERAL FUND.

SO THIS IS A GRAPH THAT SHOWS THE UNASSIGNED GENERAL FUND BALANCE SINCE 2020.

YOU CAN SEE FROM 2020 TO 2021 IT DIPPED.

AND THEN IT HAS INCREASED SINCE 2021 TO $47 MILLION OF UNASSIGNED GENERAL FUND BALANCE.

THE NEXT SLIDE.

JUST WANT TO HIGHLIGHT THAT YOU HAVE REALLY TWO MEASURES OF REPORTING.

[00:15:01]

AND THEN IT GETS CONVERTED TO A GOVERNMENT WIDE BASIS OF ACCOUNTING.

THE GOVERNMENT WIDE BASIS OF ACCOUNTING BRINGS EVERYTHING TOGETHER THAT THE CITY HAS DONE OVER TIME.

IT INCLUDES ALL OF YOUR STREETS, ALL OF YOUR BUILDINGS, ALL THESE ASSETS THAT AREN'T REALLY LIQUID.

BUT ARE EFFORTS THAT THE CITY HAS SPENT MONEY ON AND HAVE CAPITALIZED ON THIS GOVERNMENT WIDE STATEMENT OF NET POSITION.

SO I DID WANT TO HIGHLIGHT THIS IS SOMETHING THAT'S NOTABLE FOR ME AS AN ACCOUNTANT, AND I THINK WOULD BE NOTABLE FOR YOU AS WELL, IS THAT FOR THE FIRST TIME EVER, THE TOTAL ASSETS OF THE CITY EXCEEDED $1 BILLION.

SO THIS PAST YEAR, THERE WERE $1 BILLION OF ASSETS AT THE CITY.

WHAT THE NET POSITION IS, IS THE REMAINING ASSETS MINUS LIABILITIES ON THE FINANCIAL STATEMENTS.

AND YOU CAN SEE FROM 2021 TO 2023, IF YOU'RE LOOKING FROM THE BOTTOM UP, YOU HAVE AN INCREASING NET POSITION THAT'S INDICATIVE OF A CITY THAT IS NOT ISSUING DEBT TO PAY PAYROLL OR NOT ISSUING DEBT TO DO SOMETHING THAT'S CURRENT.

THEY'RE ISSUING DEBT TO PAY FOR THINGS THAT ARE GOING TO LAST FOR A LONG TIME, LIKE STREETS OR BUILDINGS.

SO YOU'D WANT TO SEE THEIR FLAT NET POSITION OR INCREASING NET POSITION.

AND WE'RE SEEING INCREASING NET POSITION HERE.

SO THAT'S A GOOD THING.

AND THEN FINALLY I JUST WANTED TO POINT OUT SOMETHING ELSE THAT WAS NOTABLE.

AND IT'S NOTABLE FOR ALL OF OUR GOVERNMENTS THAT WE WORK WITH.

AND THAT'S THE INVESTMENT EARNINGS.

NOW INVESTMENT EARNINGS THAT ARE REPORTED IN THE FINANCIAL STATEMENTS DON'T NECESSARILY DIRECTLY EQUATE TO CASH FLOWS.

SO THE GOVERNMENTS ARE REQUIRED TO REPORT ALL OF THEIR INVESTMENTS AT FAIR VALUE, REGARDLESS OF WHETHER OR NOT THEY'RE GOING TO HOLD THEM TO MATURITY, THEIR DEBT SECURITIES THAT THEY'RE GOING TO HOLD UNTIL THEY REACH THEIR MATURITY.

AND THAT'S TYPICALLY THE WAY GOVERNMENTS WOULD HOLD AN INVESTMENT IS ALL THE WAY TILL ITS MATURITY.

BUT BECAUSE OF INTEREST RATE CHANGES THAT WE'VE HAD OVER THE PAST FEW YEARS, THE PORTFOLIO OF THE CITY HAS SHOWN INVESTMENT CHANGES THAT ARE SIGNIFICANT.

AND IN THIS PAST YEAR, IT SHOWED A SIGNIFICANT INCREASE IN INVESTMENT EARNINGS, AGAIN, BECAUSE OF THE WAY THE CITY HAS MODIFIED ITS INVESTMENT POSITION IN THAT TIME, AND ALSO THE CHANGES RELATIVE TO THE INVESTMENT RATE OR INVESTMENT.

EXCUSE ME, INTEREST RATE CHANGES THAT WE'VE SEEN OVER THE PAST 12 YEARS.

SO THERE ARE A LOT OF GUARDRAILS THAT ARE SET UP FROM THE STATE AND FROM YOUR INVESTMENT POLICY AS A CITY AS TO WHAT THE CITY CAN INVEST IN.

AND THEN ONCE YOU MEET THOSE STANDARDS, YOU CAN MOVE THINGS AROUND IN THE CITY HAS MANAGED THOSE INVESTMENTS IN ORDER TO SHOW THESE INVESTMENT EARNINGS FOR THIS PAST YEAR.

SO AGAIN, I JUST WANT TO SUMMARIZE THESE LAST FEW SLIDES WERE MORE OF JUST OBSERVATIONAL ITEMS. BUT THE CITY RECEIVED A CLEAN OPINION ON ITS FINANCIAL STATEMENT AUDIT FOR 2023.

AND I'D BE HAPPY TO TAKE ANY QUESTIONS OR ANSWER ANY ITEMS THAT YOU'D HAVE.

QUESTIONS. THANK YOU, JOE.

YEAH. SORRY.

THIS ISN'T REALLY DIRECT TO YOU.

IT'S MORE NATE AND YOUR TEAM.

CONGRATULATIONS. I MEAN, TO TAKE AN AUDIT OR FINANCIALS THAT ARE THIS COMPLEX AND THIS MANY THINGS MOVING AND HAVE NO ADJUSTMENTS A CLEAN OPINION IS REALLY A TESTAMENT TO HOW HARD YOU ALL WORK.

SO CONGRATULATIONS AND THANK YOU.

AGREED. THANK YOU, I APPRECIATE YOU.

WE'LL SEE YOU NEXT YEAR. OKAY.

THANK YOU. OKAY.

NEXT IS THE CONSENT AGENDA.

[CONSENT AGENDA]

ALL MATTERS LISTED WITHIN THE CONSENT AGENDA HAVE BEEN DISTRIBUTED TO EACH MEMBER OF THE GOVERNING BODY FOR REVIEW, ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED ON BY ONE MOTION, WITH NO SEPARATE DISCUSSION.

IF A MEMBER OF THE GOVERNING BODY OF THE AUDIENCE DESIRES SEPARATE DISCUSSION ON AN ITEM, THAT ITEM MAY BE REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA.

ANY ITEMS. SEEING NONE, I WILL ENTERTAIN A MOTION TO APPROVE ITEMS ONE AND TWO ON THE CONSENT AGENDA.

SO MOVED. SECOND.

MOTION BY COURTNEY.

SECOND BY BILL. ALL IN FAVOR.

AYE. CONSENT AGENDA IS APPROVED.

NEXT IS BOARD RECOMMENDATIONS.

ITEM THREE, APPROVAL OF THE LENEXA ARTS COUNCIL 2024 RECOMMENDATIONS FOR PUBLIC ART PRIORITY LOCATIONS.

[3. Approval of Lenexa Arts Council's 2024 recommendations for public art priority locations]

I COME BEFORE YOU TONIGHT SEEKING YOUR FORMAL APPROVAL OF THE PUBLIC ART PRIORITY LIST FOR 2024.

BY POLICY, THE GOVERNING BODY DOES HAVE TO APPROVE THIS ON AN ANNUAL BASIS AND WILL BE HELD BY CITY CLERK ON FILE FOR THOSE THAT MIGHT WANT TO CHECK IT OUT ANY TIME THEY WANT.

BUT SO IF YOU RECALL, BACK ON MAY 14TH, WE HAD A IN DEPTH DISCUSSION AT A COMMITTEE OF THE WHOLE WITH LENEXA ARTS COUNCIL STAFF AND THE GOVERNING BODY.

I THINK OVERALL, THAT DISCUSSION WAS WAS GREAT.

WE GOT VERY LITTLE FEEDBACK.

I THINK THE RECOMMENDATIONS WERE PRETTY WELL RECEIVED.

SO THIS LIST IS WHAT WAS IN THE PACKET.

BUT THE TOP SIX ONE THROUGH SIX WERE WERE THE ITEMS LISTED FOR LOCATIONS THAT WE PRESENTED THAT NIGHT.

AGAIN, NO FEEDBACK, NO CONCERNS THERE.

BUT WE DID GET ONE PIECE OF FEEDBACK FROM THE GOVERNING BODY AROUND POTENTIALLY CONSIDERING THE JUSTICE CENTER AN INDOOR PIECE THERE.

[00:20:07]

A WEEK AFTER THE 14TH, WE MET WITH THE ARTS COUNCIL AT THEIR MONTHLY MEETING, DISCUSSED THAT THEY THOUGHT IT WAS A GREAT IDEA.

SO WE'VE ADDED THAT TO THE BOTTOM OF THE LIST.

SO THAT'S REALLY THE ONLY MODIFICATIONS SINCE WE TALKED ON THE 14TH.

JUST REAL QUICK FROM A MAP STANDPOINT, JUST TO GIVE YOU A VISUAL.

AGAIN, WE THINK THIS IS GOOD REPRESENTATION ACROSS THE ENTIRE CITY.

LENEXA ARTS COUNCIL IS FULLY ON BOARD AND RECOMMENDING ACCEPTANCE TONIGHT.

ANY ADDITIONAL DISCUSSION.

OKAY, THEN I NEED A MOTION TO APPROVE THE LENEXA ARTS COUNCIL 2024 PRIORITY LIST LOCATIONS.

MOTION BY CRAIG.

SECOND BY CHELSEA. ALL IN FAVOR? AYE. ITEM THREE IS APPROVED.

THANK YOU LOGAN. THANK YOU.

ITEM NUMBER FOUR IS A PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2025 COMMUNITY DEVELOPMENT BLOCK GRANT INFRASTRUCTURE PROJECTS.

[4. Public hearing to consider fiscal year 2025 Community Development Block Grant infrastructure projects]

MAYOR AND COUNCIL. TIM GREEN, CITY ENGINEER.

THANK YOU. TONIGHT, WE'RE REQUESTING A PUBLIC HEARING TO CONSIDER OUR 2025 CDBG PROJECT.

THE WAY WE'RE SET UP WITH THE COUNTY IS THAT WE GET A PERCENTAGE OF THE CDBG FUNDS FROM THE COUNTY EVERY YEAR, AND THAT IS SET BY A MEMORANDUM OF UNDERSTANDING THAT WE GOT INTO IN 2021.

I WILL BE BRINGING THAT BACK TO THE COUNCIL HERE IN THE NEXT COUPLE WEEKS FOR AN UPDATE FROM 25 TO 27.

BUT ON AVERAGE OVER THE LAST FOUR YEARS, WE'VE GOT ABOUT 190,000 A YEAR.

WE HAVE TYPICALLY OVER THE LAST FOUR YEARS, ALLOCATED THOSE FUNDS TOWARDS STREETLIGHT IMPROVEMENT PROJECTS OR A PUBLIC IMPROVEMENT PROJECT.

AND WE'RE REQUESTING THE SAME THIS YEAR.

RIGHT NOW, A STREETLIGHT COST US ABOUT $10,000 TO INSTALL.

SO WITH THIS MONEY, WE TYPICALLY PUT ABOUT 110,000 OF OUR OWN.

SO WE HAVE A $300,000 PROJECT.

WE TYPICALLY GET ABOUT 25 STREET LIGHTS.

SO NOT A LOT FOR IT, BUT FOR THE MONEY IT'S GOOD.

IT'S A GOOD IMPROVEMENT IN THE NEIGHBORHOOD.

LET'S SEE.

I'VE GOT WE ARE REQUIRED TO HOLD THE PUBLIC HEARING AND ADVERTISE IT THREE TIMES IN THE PAPER.

WE HAVE DONE THAT.

AND THE PROJECT WE'RE RECOMMENDING FOR 2025 WOULD BE IN THE VICINITY OF CANDLELIGHT SQUARE AND TUXEDO SUBDIVISION, WHICH MOST PEOPLE PROBABLY DON'T KNOW WHERE THAT'S AT. IT'S AT THE SOUTHWEST CORNER OF 87TH AND PFLUMM, AND WE WOULD BE DOING THE TWO SUBDIVISIONS IN THIS AREA.

AND THAT WOULD GET US RIGHT ABOUT THAT $300,000 PROJECT.

ACROSS FROM THE CEMETERY.

ACROSS FROM THE CEMETERY.

YEP. AND JUST AS REFERENCED, SORRY, THIS IS KIND OF SMALL, BUT THE AREAS IN RED ARE THE AREAS THAT WE HAVE HAD CDBG PROJECTS FOR STREET LIGHTING OVER THE LAST FOUR YEARS.

AND THEN THE AREA IN BLUE HERE IS THE AREA WE'RE PROPOSING FOR THIS YEAR.

THE PUBLIC HEARING IS TO LISTEN TO THE PUBLIC.

AND IF THERE ARE OTHER PROJECTS THAT MAY BE MORE IMPORTANT OR RECOMMENDED, WE WANT TO HEAR PUBLIC'S INPUT ON THAT.

THANK YOU. ANY DISCUSSION BEFORE WE OPEN THE PUBLIC HEARING? DO WE KNOW HOW MANY STREET LIGHTS WE'VE DONE AND HOW MANY HAVE LEFT? I'M SURE YOU GUYS KEEP TRACK OF THAT SOMEWHERE.

WE HAVE 7500 STREET LIGHTS.

HOW MANY WE'VE COMPLETED? WE'VE GOT THEM ALL MOVED OVER TO LED.

I CAN GET THE NUMBER FOR YOU.

I DON'T RECALL OFF THE TOP OF MY HEAD.

MOST OF THESE ARE THE OLD WOOD POLES AND DIRECT BURY.

THEY'RE NOT IN CONDUIT AND THOSE SORT OF THINGS.

SO IT'S UPGRADING TO OUR STANDARD WITH THE RIGHT SPACING AND THOSE SORT OF THINGS.

BUT I CAN GET A NUMBER.

WE'VE GOT IT. YEAH. JUST WANT TO KNOW HOW MANY CDBGS WE HAVE LEFT TO DO A LOT.

WE GOT A LOT. [LAUGHTER] YEAH.

YEAH OKAY.

I WILL NOW OPEN THE PUBLIC HEARING.

IF ANYONE WISHES TO SPEAK ON THIS ITEM, PLEASE COME FORWARD TO THE PODIUM.

OKAY SEEING NONE. CAN I GET A MOTION TO CLOSE THE PUBLIC HEARING? MOTION BY CRAIG, SECOND BY JOE.

ALL IN FAVOR? AYE.

ALL RIGHT. THANK YOU, THANK YOU.

NUMBER FIVE IS A RESOLUTION APPROVING A GOVERNING BODY FINANCE POLICY FOR THE PROPERTY TAX REBATE PROGRAM.

[5. Resolution approving a Governing Body Finance Policy for a Property Tax Rebate Program]

GOOD EVENING, MAYOR AND COUNCIL.

KYLE GLASER EXECUTIVE DEPARTMENT, ECONOMIC DEVELOPMENT ANALYST AND BEFORE YOU TONIGHT IS THE PROPERTY TAX REBATE POLICY.

THE POLICY DRAFT IN YOUR PACKET TONIGHT IS LARGELY THE SAME AS THE POLICY DRAFT THAT WE REVIEWED ON THE COMMITTEE OF THE WHOLE MEETING ON MAY 14TH.

SO AS A RESULT, I JUST HAVE A FEW SLIDES HERE FOR YOU TONIGHT TO KIND OF GO OVER SOME OF THE PROGRAM PARAMETERS ONE MORE TIME.

ELIGIBILITY CRITERIA TO BE ELIGIBLE FOR THIS PROGRAM.

ONCE AGAIN, EVERY APPLICANT MUST MEET THESE FIVE BASIC CRITERIA REQUIREMENTS.

THEY MUST OWN AND OCCUPY THEIR HOUSE.

THE HOMEOWNER MUST BE 65 PLUS OR A DISABLED VETERAN.

[00:25:03]

THAT'S A 2023 HOME APPRAISAL OF $390,000 OR LESS.

THE INDIVIDUAL MUST HAVE A HOUSEHOLD INCOME AT OR BELOW THE PREVIOUS YEAR'S HUD VERY LOW INCOME LIMITS, WHICH YOU CAN SEE AGAIN ON THE TABLE THERE ON THE RIGHT.

AND THEN LASTLY, THEIR PROPERTY TAXES MUST BE PAID IN FULL.

AND THAT'S SOMETHING THAT WE'LL VERIFY AS, AS APPLICANTS OR EXCUSE ME, AS APPLICATIONS KIND OF COME IN.

THE ACTUAL REBATE PAYMENTS THEMSELVES WILL BE CALCULATED ON A PRO RATA SHARE OF AVAILABLE FUNDS, UP TO A MAXIMUM OF 75% OF THE TOTAL CITY TAX BILL.

SO WHAT THAT MEANS IS A COUPLE OF DIFFERENT THINGS.

EVERY ELIGIBLE APPLICANT THAT APPLIES FOR THE PROGRAM WILL GET A REBATE.

THE ACTUAL AMOUNT OF THAT REBATE WILL DEPEND ON ON A COUPLE OF FACTORS HOW MANY APPLICATIONS WE ACTUALLY END UP RECEIVING AND THE INDIVIDUAL APPRAISED VALUE OF EACH APPLICATION. WE KIND OF ESTIMATE EACH REBATE WILL BE BETWEEN 500 AND THAT $924 MAXIMUM, WHICH IS THAT THAT MAXIMUM APPRAISED VALUE AN APPLICANT CAN HAVE.

AND THEN LASTLY LAST SLIDE HERE.

THE APPLICATION PERIOD WHERE WE'RE GOING TO HAVE AN OPEN APPLICATION PERIOD.

EXCUSE ME FROM AUGUST 1ST THROUGH OCTOBER 31ST.

THIS DOES A FEW THINGS. THIS GIVES US TIME TO KIND OF ALLOW PEOPLE TO KIND OF GATHER ALL OF THE REQUIRED DOCUMENTATION THAT WE NEED AND AS WELL AS CAST OUT, YOU KNOW, THE WIDEST POSSIBLE NET TO HOPEFULLY GET AS MANY PEOPLE AS WE CAN TO APPLY FOR THIS PROGRAM.

WE'RE GOING TO ACCEPT APPLICATIONS IN PERSON HERE AT CITY HALL BY MAIL OR BY EMAIL.

AND INSTRUCTIONS ON HOW TO DO THAT WILL ALL BE LISTED IN ALL OF OUR KIND OF INFORMATIONAL MATERIALS, AS WELL AS MY DIRECT PHONE LINE AND EMAIL ADDRESS FOR ANYBODY THAT THAT MAY HAVE QUESTIONS OR NEED ASSISTANCE GETTING THROUGH KIND OF THAT APPLICATION PROCESS TO RECEIVE A REBATE, EVERY APPLICATION HAS TO SUBMIT A LIST OF A LIST OF THINGS THAT YOU CAN SEE UP THERE ON THE SCREEN.

AND THAT'S REALLY FOR US TO VERIFY ALL OF THE DIFFERENT ELIGIBILITY REQUIREMENTS THAT APPLICANTS ARE REQUIRED TO MEET.

BUT YOU CAN SEE IT THERE.

WE'LL HAVE AN APPLICATION FORM FOR INDIVIDUALS TO FILL OUT AND SIGN.

WE'RE GOING TO NEED A COPY OF PHOTO ID THAT DOES TWO THINGS THAT LETS US KNOW THAT WE THEY ARE WHO THEY SAY THEY ARE.

AND WE CAN VERIFY AGE FOR THOSE THAT ARE APPLYING WITH THAT 65 PLUS ELIGIBILITY CRITERIA VERIFICATION OF THEIR PREVIOUS YEAR'S INCOME.

WE'VE TALKED ABOUT THAT IN THE PAST, EXACTLY HOW WE'RE GOING TO VERIFY THAT PRIMARILY THROUGH THE FEDERAL TAX RETURN FORM 1040.

AND IF THE APPLICANT'S APPLYING UNDER THE DISABLED VETERAN CRITERIA, WE'RE GOING TO REQUIRE A COPY OF THEIR VA AWARD LETTER SHOWING THEIR ACTUAL DISABILITY RATING.

AND THEN LASTLY, TO ACTUALLY GO FORWARD AND MAKE THE PAYMENT, WE NEED THE ACH ENROLLMENT FORM.

THAT'S THEIR DIRECT DEPOSIT FORM AS WELL AS A W-9 FORM FROM THEM.

AND AGAIN, THOSE WILL BE ACTUAL FORMS THAT WE'LL HAVE PHYSICAL COPIES OF HERE, AS WELL AS LINKS ONLINE FOR, FOR INDIVIDUALS TO FILL OUT.

SO BE HAPPY TO ANSWER ANY QUESTIONS.

BUT THAT'S REALLY IT FOR ME.

ANYTHING FOR KYLE, JOE? THANK YOU KYLE. I REALLY APPRECIATE IT.

ANYWAY, MY ONE COMMENT IS CONCERN ABOUT EMAIL BECAUSE AS I LOOK AT IT, BIRTH DATE, SOCIAL AND [INAUDIBLE] BANKING INFORMATION IS NOT SOMETHING I'D WANT THESE INDIVIDUALS TO BE SENDING TO US OVER INSECURE EMAIL.

NOT SECURE EMAIL.

IS THERE A WAY WE COULD DO A PORTAL INSTEAD OR SOMETHING JUST SO THEY'RE NOT SENDING THOSE DOCUMENTS BACK VIA EMAIL? WE COULD AND THAT'S KIND OF WHY WE HAVE SOME OF THOSE OTHER OPTIONS THERE.

WHEN YOU'RE SENDING IT DIGITALLY, THERE'S REALLY YOU'RE GOING TO KIND OF ALWAYS RUN INTO SOME OF THOSE FACTORS, WHICH IS KIND OF WHY WE LANDED ON THE EMAIL PORTION OF IT, AS WELL AS SOME OF THOSE OTHER OPTIONS.

OUR WEBSITE HAS AN ONLINE FUNCTION, BUT AGAIN, WHEN OR EXCUSE ME, A FORM FUNCTION THAT PEOPLE CAN SUBMIT SOME OF THAT STUFF.

BUT ONCE WE OPEN IT, IT DISAPPEARS.

CORRECT. AND SO WE, WE KIND OF RUN THE RISK OF LOSING SOME OF THAT INFORMATION AS WELL AND NOT BEING ABLE TO GO BACK AND VERIFY SOME OF IT.

SO THAT'S KIND OF WHY WE LANDED ON THE THREE THAT WE DID.

TO KIND OF GIVE PEOPLE THOSE OPTIONS IN CASE THEY DON'T.

BUT WE DEFINITELY UNDERSTAND THAT WE'RE REQUIRING A LOT OF SENSITIVE INFORMATION THAT, THAT WE'RE GOING TO HAVE TO KIND OF KEEP SECURE.

YEAH. AND I MEAN, THAT JUST CONCERNS ME SENDING THAT KIND OF INFORMATION OVER EMAIL OR HAVING OUR RESIDENTS DO THAT.

MAYBE A DECENT COMPROMISE WAS LIKE, IF SOMEONE IS INTERESTED, THEY CAN EMAIL AND THEN CORRESPOND ABOUT GETTING ANY OF THEIR DROPPED OFF OR MAILED.

YEAH. OKAY.

LIKE I SAID, MY NUMBER AND EMAIL WILL BE THERE TO TO KIND OF WE'LL WORK WITH PEOPLE AS MUCH AS AS MUCH AS POSSIBLE, WELL ESPECIALLY IN THIS FIRST YEAR WHEN IT'S, YOU KNOW, IT'S KIND OF NEW TO EVERYBODY, RIGHT? YEAH. AND SO I FULLY EXPECT TO HAVE SOME OF THAT YOU KNOW, KIND OF EXTRA LEGWORK TO GET SOME OF THIS DOCUMENTATION IN.

[00:30:07]

THANK YOU. KYLE.

WE'VE BEEN TALKING ABOUT THIS OVER A YEAR AND YOU DID A REAL GOOD JOB ON THIS.

THANK YOU. THE PACKET MEMO.

THERE'S SOMETHING I DON'T KNOW.

IT SAYS OWNER OCCUPIED HOMES ATTACHED OR DETACHED.

WHAT'S THAT MEAN? DUPLEXES. REALLY? OKAY. OKAY.

THANK YOU. CHRIS.

JUST TO FOLLOW UP A LITTLE BIT ON WHAT JOE SAID, IT SEEMS TO ME THAT IF WE'RE GOING TO OFFER EMAIL AS A METHOD OF COMMUNICATION, WE OUGHT TO PUT A BIG WARNING BANNER UP ON THAT.

JUST SAYING IT'S NOT SECURE.

AND IF YOU FEEL UNCOMFORTABLE, YOU KNOW, BRING IT IN, WALK IT IN, SOMETHING LIKE THAT, OR USE [INAUDIBLE].

BUT I THINK WE OUGHT TO WARN IN THAT, I'VE BEEN IN A LOT OF CASES WHERE FAILURE TO WARN IS ONE OF THOSE THINGS THE ATTORNEYS LIKE TO CAPITALIZE ON.

AND WE'RE STILL KIND OF DRAFTING WHAT THAT APPLICATION FORM IS GOING TO LOOK LIKE TO MAKE SURE THAT WE THAT WE CAPTURE ALL OF THIS INFORMATION THAT WE NEED AND THAT WE CAN CHECK AND SO I'M GOING TO LEAN ON SEAN FOR THAT.

COMING UP. THANKS, MAYOR AND COUNCIL MEMBERS.

I WOULD JUST SAY WE'LL BE I THINK YOU RAISE A GREAT POINT.

WE'LL WORKSHOP THAT WITH OUR IT TEAM AND OUR LEGAL TEAM AND, AND MAKE SURE THAT WE'RE COVERED THERE.

CHRIS, DID YOU HAVE SOMETHING? YEAH.

THANKS, KYLE. HOW DO YOU HANDLE APPLICATIONS FOR PEOPLE THAT DON'T BANK? PEOPLE THAT DON'T BANK IN REGARDS TO TO WHAT PEOPLE LIKE? THEY DON'T HAVE A BANK ACCOUNT, SO THEY'LL STILL HAVE TO FILE A TAX RETURN, I BELIEVE HE'S TALKING ABOUT.

RIGHT, RIGHT. HOW WOULD THEY GET THEIR MONEY? OH, OKAY. SORRY.

NATE. WE PREFER ACH FOR OBVIOUS REASONS, BUT WE'D BE WILLING TO CUT A CHECK IN THIS INSTANCE IF THEY DIDN'T HAVE A BANK ACCOUNT AND COULD PROVE THAT.

OKAY. YES.

GO AHEAD. I JUST WANT TO THANK THE KYLE DEPARTMENT FOR ALL OF THE HARD WORK ON THIS.

THIS IS GREAT. I KNOW WE'VE HASHED THROUGH A LOT OF DIFFERENT SCENARIOS ON THIS, AND I'M HAPPY TO SEE THIS COME TO FRUITION.

I HOPE THAT WE GET LOTS OF APPLICANTS.

SO THANK YOU FOR YOUR WORK.

OKAY. I JUST WANTED TO ADD, MAYBE FOR THE GOOD OF THE RECORDING, IF ANYBODY IS WATCHING ONLINE THIS ITEM WAS APPROVED IN LAST YEAR'S BUDGET APPROVAL.

SO WE'RE DEALING WITH AN AMOUNT OF MONEY THAT'S SORT OF ALREADY BEEN ALLOCATED.

AND WE VIEW THIS VERY MUCH AS A PILOT PROGRAM.

WE CERTAINLY WON'T HAVE IT PERFECT THE FIRST TIME, BUT NEED TO SORT OF WORK OUT THE KINKS OF THE ADMINISTRATION.

THIS IS A GOOD DISCUSSION TO INFORM HOW WE DO IT GOING FORWARD, AND THEN WE'LL BE BACK A YEAR FROM NOW TO DISCUSS WHAT IMPROVEMENTS WE CAN MAKE UPON IT.

SO THANK YOU KYLE. YEP. OKAY.

WITH THAT, I'LL TAKE A MOTION TO ADOPT THE RESOLUTION APPROVING THE GOVERNING BODY OF FINANCE POLICY FOR THE PROPERTY TAX REBATE PROGRAM.

SECOND MOTION BY MARK.

SECOND BY MELANIE.

ALL IN FAVOR? AYE.

THANK YOU. RESOLUTION IS APPROVED.

ANY COUNCIL MEMBER REPORTS THIS EVENING? OKAY. THEN WE'LL MOVE ON TO, ACTUALLY, I THINK WE HAVE A COUPLE OF STUDENTS HERE THIS EVENING.

WHEN YOU COME TO LENEXA CITY COUNCIL MEETINGS, YOU UNFORTUNATELY HAVE TO STAND UP, STATE YOUR NAME, WHERE YOU GO TO SCHOOL AND WHAT YOU ARE STUDYING WITH US HERE THIS EVENING.

ACTUALLY, WE'RE BOTH HERE FOR MERIT BADGE FOR A COUPLE OF MERIT BADGE BOY SCOUTS.

EXCELLENT. AND WHAT WERE THOSE BADGES? WE WERE WORKING ON THE CITIZENSHIP IN COMMUNITY MERIT BADGE AND THE COMMUNICATIONS.

PERFECT. AND DO YOU LIVE IN LENEXA? YEAH. AND WHAT ARE YOUR NAMES? MY NAME IS DANNY. THANK YOU FOR JOINING US THIS EVENING.

OKAY. WITH STAFF REPORTS, WE'LL TAKE THE QUARTERLY FINANCIAL REPORT FROM NATE.

[STAFF REPORTS]

NATE BLUM WITH THE FINANCE DEPARTMENT AGAIN.

I HAVE THE FIRST QUARTER OF 2024 FINANCIAL REPORT FOR YOU THIS EVENING.

FOR THOSE THAT ARE NEW TO THE COUNCIL OR NEW TO THIS PRESENTATION.

THIS PRESENTATION IS UNAUDITED.

SO WE GET OUR ANNUAL FINANCIAL STATEMENTS AUDITED.

THIS IS JUST KIND OF QUARTERLY UPDATES THROUGHOUT THE YEAR.

[00:35:02]

WE HAVE FIVE KEY INDICATOR AREAS THAT WE FOCUS ON.

YOU CAN SEE THEM LISTED OUT THERE.

AND THEN WE HAVE A RATING SCALE WHICH IS COLOR CODED.

OBVIOUSLY GREEN IS GOOD.

JUST TO KIND OF SUMMARIZE EVERYTHING IN THIS PRESENTATION, OUR KEY REVENUES HAVE INCREASED $500,000 OVER THE SAME PERIOD IN 2023.

THAT'S 1%.

SO I'LL GET INTO IT A LITTLE BIT.

WE HAVE SEEN A SLOWDOWN IN SOME OF OUR MAJOR REVENUE SOURCES FOR THE FIRST QUARTER OF THIS YEAR.

EXPENDITURES ARE ALL WITHIN BUDGET FOR FISCAL YEAR 24.

I HAVE LEFT ALL OF THESE GREEN CURRENTLY MAINLY BECAUSE WE'RE AT THE BEGINNING OF THE YEAR, FIRST QUARTER THERE'S STILL TIME TO KIND OF CATCH UP A LITTLE BIT.

BUT YOU'LL NOTICE CITY AND COUNTY SALES TAX REVENUES ARE DOWN THREE AND 4%, RESPECTIVELY.

OBVIOUSLY SALES TAX IS A PRETTY SIGNIFICANT PORTION OF OUR GENERAL FUND REVENUE AND GENERAL FUND BUDGET.

SO THAT IS A LITTLE BIT CONCERNING.

AS I MENTIONED IT'S LEFT GREEN.

BUT BY THE SECOND QUARTER, KNOWING WHAT I KNOW ABOUT APRIL AND MAY, WE DID CATCH UP A LITTLE BIT, BUT WE'RE STILL LAGGING BEHIND.

IT'LL PROBABLY BE AN AREA OF CONCERN MOVING FORWARD.

COMPENSATING USE TAX FOR CITY AND COUNTY HAVE KIND OF MADE UP A LITTLE BIT OF THAT SHORTFALL IN SALES TAX REVENUES.

THEY'RE UP ONE AND 2%.

WE'VE ALSO SEEN FRANCHISE FEES FOR ELECTRIC AND GAS DECREASE THIS FIRST QUARTER AS WELL.

LAST YEAR WE SAW 11% INCREASE IN ELECTRIC FRANCHISE FEES.

AND THEN IN GAS WE SAW A 28% INCREASE.

SO STILL PRETTY GOOD REVENUE COMING FROM THOSE SOURCES.

BUT WE ARE A LITTLE BIT DOWN FOR THE FIRST QUARTER OF THIS YEAR.

STORMWATER SERVICE CHARGES, SAME STORY.

WE HAD A LOT OF EDUS ADDED FIRST QUARTER OF LAST YEAR.

WE'RE STILL DOING REALLY WELL IN THAT FUND.

BUT THE REVENUE FROM THE NUMBER OF EDUS HAS DECREASED 2% YEAR OVER YEAR.

THIS IS KIND OF IN PREPARATION FOR THE BUDGET OVERVIEW PRESENTATION I'LL BE GIVING LATER THIS MONTH.

I'M JUST KIND OF KEEP THIS IN THE BACK OF YOUR MIND.

I HAD TO READJUST SOME OF OUR REVENUE PROJECTIONS BASED OFF OF THE SALES TAX AND FRANCHISE FEES REVENUES SO FAR THIS YEAR.

THIS SLIDE REALLY KIND OF GIVES YOU A LITTLE BIT MORE NARRATIVE ON EACH OF THOSE REVENUE SOURCES.

YOU CAN SEE THE DOLLAR VALUE OF THE DECREASES THERE.

PROPERTY TAX COLLECTIONS ARE RIGHT WHERE WE WANT TO BE.

AT 50% OF OUR 24 BUDGET ESTIMATE, WE DID RECEIVE THE FIRST HALF OF OUR DISTRIBUTION, OUR FIRST DISTRIBUTION, WHICH IS HALF OF OUR PROPERTY TAX REVENUE AT THE END OF JANUARY. SALES TAX, AS I MENTIONED, DOWN A LITTLE BIT.

AND YOU CAN SEE GAS FRANCHISE FEES DOWN 93,000 AND STORMWATER SERVICE CHARGES DOWN ALMOST 90,000.

ON THE EXPENDITURE SIDE LOOKING REALLY GOOD.

YOU CAN SEE GENERAL FUND INCREASED 4%, WHICH IS WELL WITHIN OUR BUDGET.

OPERATING EXPENDITURES AND STORMWATER INCREASED 10%, MAINLY FOR CAPITAL PURCHASES THAT ARE ONE TIME PURCHASES AND 2024.

WE HAVE INCREASED A LITTLE BIT IN THE DEBT SERVICE FUND WITH THAT BEING ISSUED THE LAST COUPLE OF YEARS, BUT WE ARE WELL WITHIN BUDGET.

GENERAL FUND IS ONLY AT 25% OF OUR BUDGET ESTIMATES, RIGHT WHERE WE WANT TO BE FOR THE YEAR.

STORMWATER IS AT 20% OF OUR TOTAL BUDGET ESTIMATE.

AND DEBT SERVICE COMES IN AT 12%.

DEBT SERVICE FUND. WE'VE ONLY REALLY PAID OUR INTEREST PAYMENT ON MARCH 1ST.

WE HAVE OUR LARGE PRINCIPAL AND INTEREST PAYMENT THAT WILL HIT IN SEPTEMBER OF THIS YEAR AS WELL.

RESERVE BALANCES.

YOU CAN SEE THEY ARE PRETTY HEALTHY RIGHT NOW IN EACH OF THOSE FUNDS.

WE WOULD EXPECT THAT BECAUSE WE DID RECEIVE HALF OF OUR PROPERTY TAX REVENUE AT THE BEGINNING OF THE YEAR, THAT IS BUDGETED TO BE SPENT DOWN THROUGH THE END OF FISCAL YEAR 2024. WE'LL ALSO SEE A RESERVE TRANSFER FROM THE GENERAL FUND.

WE'LL BE BRINGING THAT BEFORE THE COUNCIL FOR APPROVAL.

AND KIND OF GIVE YOU AN UPDATE ON THAT AT OUR BUDGET OVERVIEW PRESENTATION LATER THIS MONTH.

AS I MENTIONED, THAT SERVICE FUND STORMWATER FUND, THOSE BALANCES WILL BE SPENT DOWN.

WE HAVE A DEBT SERVICE PAYMENT IN SEPTEMBER OF THIS YEAR WHICH WILL BRING THOSE BALANCES DOWN.

REC CENTER FUND.

WE HAVE BEEN BUILDING UP THAT BALANCE IN ANTICIPATION OF CAPITAL MAINTENANCE AND EXPENDITURES THAT ARE COMING DUE IN THE NEXT FEW YEARS.

SO THAT'S WHY WE'VE MAINTAINED A LARGER BALANCE IN THAT FUND.

AND THEN THE TOURISM FUND.

WE HAVE A VERY NARROW SCOPE OF WHAT WE CAN USE THOSE FUNDS FOR.

WE HAVE A COUPLE ECO DEVO AGREEMENTS IN THE WORKS TO REDUCE THAT FUND BALANCE, AND A COUPLE GRANTS FOR LOCAL ENTITIES AS WELL.

[00:40:09]

RATIO OF DEBT SERVICE TO TOTAL EXPENDITURES IS 12%.

RATING AGENCIES LIKE TO SEE LESS THAN 15%, SO WE'RE WELL WITHIN TARGET TO MAINTAIN OUR TRIPLE-A BOND RATING.

AS WELL AS OUR 1.45% RATIO OF DIRECT G.O.

DEBT TO APPRAISED VALUATION.

SO BOTH ARE REALLY GOOD RATIOS.

INVESTMENT INDICATORS.

AS CHESTER MENTIONED, WE'VE HAD INTEREST RATES RAPIDLY INCREASE OVER THE LAST COUPLE OF YEARS.

IT DID TAKE SOME TIME FOR OUR PORTFOLIO TO KIND OF RECYCLE.

WE ARE ABLE TO LADDER OUT UP TO FOUR YEARS ON OUR INVESTMENTS.

SO WE HAD SOME INVESTMENTS FROM 2020 THAT WERE AT, YOU KNOW, 1% EVEN LESS THAN THAT.

SO AS THOSE MATURE, WE'RE ABLE TO REINVEST.

WE ACTUALLY ARE KEEPING UP PRETTY WELL IN THE SHORT TERM.

PORTFOLIO AND THE BENCHMARK.

SO WE'RE AT 5.1% BENCHMARK AT 5.4 CURRENT INVESTMENT YIELD FOR OUR LONG TERM PORTFOLIO WOULD ACTUALLY BE UP AROUND THERE AND ACTUALLY DOING BETTER THAN THE BENCHMARK. SO CHESTER, LET ME KNOW THAT WE HAD ONE OF THE HIGHER RATE OF RETURNS OF ANY ENTITY THEY AUDIT IN THE KANSAS CITY METRO.

SO THAT WAS PRETTY COOL.

SO. YOU ALSO SAW THAT $10 MILLION THAT CHESTER SHOWED AS FAR AS INVESTMENT INCOME, AND YOU SAW A COUPLE OF YEARS BEFORE THAT WE HAD A LOSS. WELL IN THREE MONTHS, WE'RE NOW SHOWING AN UNREALIZED LOSS OF 1.6 MILLION ON THAT INVESTMENT PORTFOLIO.

IT'S NOT AN ACTUAL LOSS BECAUSE, AS CHESTER MENTIONED, WE HOLD EVERYTHING TO MATURITY.

SO THAT'S NOT REALIZED.

BUT SIMILAR TO IF WE WERE TO SELL EVERYTHING AS DECEMBER 31ST AND GET THAT 10 MILLION, IF WE WERE TO SELL IT AS OF 3/31, WE WOULD SHOW A $1.6 MILLION LOSS ON THAT INVESTMENT PORTFOLIO.

AND THEN THE TOTAL MARKET VALUE OF THE PORTFOLIO IS 179.3 MILLION AT THE END OF THE QUARTER.

SOME ECONOMIC INDICATORS.

THE CITY DOESN'T HAVE DIRECT IMPACT ON SOME OF THESE, BUT IT IS A GOOD LITMUS TEST FOR THE HEALTH OF THE CITY AND THE LOCAL COMMUNITY.

COMMERCIAL BUILDING PERMITS, RIGHT IN LINE WITH THE FIVE YEAR AVERAGE AT 50.1 MILLION.

SINGLE FAMILY RESIDENTIAL SLIGHTLY HAD AT 28.6 MILLION.

AND THEN APARTMENT BUILDING PERMITS.

WE'VE HAD $0 AVERAGE OVER THE LAST FIVE YEARS.

THEY HAD 53.6 MILLION THEIR FIRST QUARTER.

AND YOU CAN SEE THE AVERAGE LENEXA HOME.

THE APPRAISED VALUE WENT UP 7.2% FROM 439,000.

TO 467,000.

AND THEN IN TOTAL, OUR BUILDING PERMIT REVENUE, WHICH WE SET A RECORD LAST YEAR FOR BUILDING PERMIT REVENUE COLLECTIONS.

THIS YEAR WE'RE TRENDING AHEAD.

OF 2023 AT 526,000 FOR THE FIRST QUARTER.

AS YOU KNOW, THERE ARE SOME EXHIBITS IN YOUR COUNCIL PACKET, SOME OTHER FINANCIAL REPORTS I'M NOT GOING TO GO INTO UNLESS THERE'S SPECIFIC QUESTIONS.

AND WITH THAT, I CONCLUDE MY REPORT AND HAPPY TO ANSWER ANY QUESTIONS.

QUESTIONS FOR NATE? OKAY. THANK YOU VERY MUCH.

YOU BET. BECCY, ANY OTHER STAFF REPORTS THIS EVENING? JUST TO TELL YOU ALL THAT WE WILL NOT HAVE A CAO MEETING NEXT TUESDAY, SO WE'LL SEE YOU BACK HERE ON THE 18TH.

OKAY, THIS DOES END THE RECORDED PORTION OF THE MEETING.

* This transcript was compiled from uncorrected Closed Captioning.