Jun 02, 2026 City Council Meeting

[CALL TO ORDER]

[00:00:08]

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.

SOMEDAY, JENNIFER, WOULD YOU PLEASE CALL ROLL.

THANK YOU. MAYOR. COUNCIL MEMBER HANDLEY. PRESENT.

COUNCIL MEMBER EITERICH. HERE. COUNCIL MEMBER CHARLTON.

HERE. COUNCIL MEMBER NICKS. HERE. COUNCIL MEMBER BELL.

PRESENT. COUNCIL MEMBER WILLIAMSON IS ABSENT.

COUNCIL MEMBER DENNY. PRESENT. COUNCIL MEMBER HERRON IS ABSENT.

MAYOR SAYERS IS PRESENT AND PRESIDING. THANK YOU.

JENNIFER. ANY CORRECTIONS TO THE DRAFT MINUTES OF THE MAY 19TH CITY COUNCIL MEETING?

[APPROVE MINUTES]

MOTION BY CRAIG. SECOND BY AVERY. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED. MINUTES ARE APPROVED. JENNIFER.

ANY MODIFICATIONS THIS EVENING? YES. ITEM 7 WILL BE REMOVED FROM THE CONSENT AGENDA FOR STAFF PRESENTATION.

[MODIFICATION OF AGENDA]

[PROCLAMATIONS]

AND WE'LL SAVE THE MOMS FOR THE LAST. WE'LL DO A BIG GROUP PHOTO AT THE END FOR MOMS DEMAND.

UP FIRST, THIS EVENING WE HAVE LGBTQ PRIDE MONTH AND HERE TO RECEIVE OUR TERREN JONES WITH EQUALITY KANSAS AND JAY MOYER FROM THE JOHNSON COUNTY DEI COALITION AND RECENT LENEXA RESIDENT. YOU'RE GOOD.

WHEREVER YOU WANT ME. OKAY, WE'LL START THERE.

WHEREAS THE CITY OF LENEXA SUPPORTS THE RIGHTS OF EVERY CITIZEN TO EXPERIENCE EQUALITY AND FREEDOM FROM DISCRIMINATION.

AND WHEREAS THE CITY OF LENEXA RECOGNIZES AND CELEBRATES THE CONTRIBUTION.

WELL, I WAS GOING TO LET YOU READ THIS ONE. THAT'S OKAY.

AND EVERYONE. THANK YOU. AND WHEREAS THE CITY OF LENEXA RECOGNIZES AND CELEBRATES THE CONTRIBUTIONS OF THE LESBIAN, GAY, BISEXUAL, TRANSGENDER, QUEER AND INTERSEX COMMUNITY.

AND WHEREAS THE CITY OF LENEXA IS COMMITTED TO FOSTERING A WELCOMING AND INCLUSIVE ENVIRONMENT FOR ALL MEMBERS OF THE COMMUNITY.

AND WHEREAS JUNE IS WIDELY RECOGNIZED AS PRIDE MONTH, A TIME TO HONOR THE ACHIEVEMENTS AND STRUGGLES OF THE LGBTQ PLUS COMMUNITY.

NOW THEREFORE, DOES JULI SAYERS OF MAYOR OF LENEXA, KANSAS, DO HEREBY PROCLAIM THE MONTH OF JUNE IN THE CITY OF LENEXA TO BE LGBTQ PLUS PRIDE MONTH AND URGE ALL LENEXA RESIDENTS TO JOIN IN CELEBRATING DIVERSITY, PROMOTING RESPECT FOR ALL INDIVIDUALS AND WORKING TOWARD A MORE INCLUSIVE AND EQUITABLE COMMUNITY. ALL RIGHT. THANK YOU, JOHN. MICHAEL.

TERRY. [APPLAUSE] I JUST WANT TO THANK I AND EQUALITY KANSAS. JUST WANT TO THANK MAYOR SAYERS AND THE LENEXA CITY COUNCIL FOR ONCE AGAIN DOING A PRIDE PROCLAMATION FOR JUNE.

AWARENESS IS SO IMPORTANT AND WE ARE JUST SO LUCKY TO HAVE OUR AMAZING LENEXA CITY COUNCIL MEMBERS.

SO THANK YOU SO MUCH.[APPLAUSE] THANK YOU. I JUST WANTED TO SAY, ON BEHALF OF THE JOHNSON COUNTY DIVERSITY, EQUITY AND INCLUSION COALITION, THANK YOU. THANK YOU FOR YOUR LEADERSHIP.

NOW MORE THAN EVER OUR COMMUNITY'S RIGHTS ARE UNDER ATTACK.

AND SO RECOGNIZING LGBTQ PRIDE DURING THE MONTH OF JUNE IS EXTREMELY IMPORTANT FOR VISIBILITY.

AND IT SPEAKS TO THE WONDERFUL LEADERSHIP WE HAVE IN MY NEW CITY.

SO THANK YOU, MAYOR AND COUNCIL MEMBERS.[APPLAUSE] YEAH. YOU GOOD WITH THAT, TERRY? YEAH. OKAY. PERFECT.

WE HAVE GARY EWING HERE TO ACCEPT. HELLO, GARY.

WHEREAS THE GREAT LENEXA BARBECUE BATTLE BEGAN IN 1982 THROUGH THE EFFORTS OF PAT DALTON AND ALAN JEWEL, AND WAS NAMED THE STATE CHAMPIONSHIP OF KANSAS IN 1984.

AND WHEREAS THE EVENT OFFERS FAMILY FRIENDLY RECREATION AND SPIRITED COMPETITION FOR BARBECUE ENTHUSIASTS.

AND WHEREAS HUNDREDS OF LENEXA RESIDENTS VOLUNTEER THEIR TIME AND TALENTS TO HELP MAKE THE EVENT A SUCCESS EACH YEAR.

[00:05:03]

AND ONE GRAND CHAMP. WHAT'S. MISCELLANEOUS. OH, OKAY.

AND WHEREAS THE 44TH ANNUAL EVENT TO BE HELD JUNE 26TH AND 27TH, 2026, CONTINUES TO BRING REGIONAL AND NATIONAL RECOGNITION TO THE CITY OF LENEXA.

NOW THEREFORE, I, JULIE SAYERS, MAYOR OF LENEXA, KANSAS, DO HEREBY PROCLAIM THE MONTH OF JUNE IN THE CITY OF LENEXA TO BE LENEXA BARBECUE MONTH. [APPLAUSE] ANYTHING YOU'D LIKE TO ADD? JUST WOULD LIKE TO THANK THE MAYOR AND CITY COUNCIL AS WELL AS ALL THE PEOPLE THAT HELP OUT WITH THE BARBECUE.

I'VE BEEN AN AMBASSADOR THE LAST SEVERAL YEARS, AND AS AN AMBASSADOR, YOU KIND OF JUST HELP THE CONTESTANTS AND MAKE THEM FEEL WELCOME AND EVERYTHING. ALL THE FEEDBACK I RECEIVED FROM THEM IS JUST EXTREMELY POSITIVE.

SO LET'S PRAY FOR NO RAIN. A FEW DAYS BEFORE THE EVENT AND A NICE QUICK CLEANUP FOR THE PARK AND REC STAFF AFTERWARDS.

THANK YOU SO MUCH. THANK YOU. [APPLAUSE] I HAVE TO THANK PAT THOMAS.

HE WOULD NORMALLY BE RECEIVING THIS, BUT HE'S SAID I NEEDED TO STEP IN FOR HIM THIS YEAR.

OKAY. WELL, HERE'S YOUR PROCLAMATION. WELL THANK YOU VERY MUCH. SECURE STORAGE AWARENESS MONTH WE HAVE CARLA OPPENHEIMER.

OKAY. EVERYBODY'S WEARING ORANGE T SHIRTS. PERFECT.

WHEREAS THE CITY OF LENEXA RECOGNIZES THE SAFETY OF ALL RESIDENTS AS A FUNDAMENTAL COMMUNITY PRIORITY.

AND WHEREAS UNAUTHORIZED ACCESS TO FIREARMS CAN CONTRIBUTE TO PREVENTABLE INJURIES AND DEATHS, INCLUDING ACCIDENTAL SHOOTINGS AND SUICIDES. AND WHEREAS RESEARCH SHOWS THAT STRONGLY SECURING SECURELY STORING FIREARMS UNLOADED, LOCKED, AND SEPARATE FROM AMMUNITION SIGNIFICANTLY REDUCES THE RISK OF SUICIDE AND UNINTENTIONAL INJURY.

AND WHEREAS RESPONSIBLE FIREARM STORAGE IS A VOLUNTARY PRACTICE THAT RESPECTS THE LAWS, THE RIGHTS OF LAWFUL GUN OWNERS EXCUSE ME.

WHILE PRIORITIZING THE SAFETY OF CHILDREN, FAMILIES AND THE BROADER COMMUNITY.

WHEREAS, THE CITY OF LENEXA VALUES COMMUNITY PARTNERSHIPS AMONG HEALTH CARE PROVIDERS, SCHOOLS, VETERANS ORGANIZATIONS, PUBLIC SAFETY AGENCIES, AND COMMUNITY GROUPS TO RAISE AWARENESS AND PROVIDE EDUCATION AND RESOURCES ON SECURE FIREARM STORAGE. NOW, THEREFORE, I, JULIE SAYERS, MAYOR OF LENEXA, KANSAS, DO HEREBY PROCLAIM JUNE 2026 IN THE CITY OF LENEXA TO BE SECURE STORAGE AWARENESS MONTH. ANYTHING YOU'D LIKE TO ADD JUST BRIEFLY? THANK YOU SO MUCH. JUST WANT TO SAY THANK YOU SO MUCH TO MAYOR SAYERS AND THE CITY COUNCIL GRANDPARENTS FOR GUN SAFETY HAS BEEN AROUND SINCE THE SANDY HOOK TRAGEDY.

AND WE WERE VERY DISTURBED BY THE FACT THAT 4.5 MILLION CHILDREN LIVE IN HOMES WITH UNSECURED AND LOADED FIREARMS. SO ONE OF THE THINGS THAT WE'RE DOING IN ADDITION TO OUR LOCKET FOR LOVE PROGRAM, WHICH IS GIVEN OUT IN 10 YEARS, ALMOST 10,000 GUN LOCKS, WE ARE GOING AROUND TO CITIES IN BOTH MISSOURI AND KANSAS AND GETTING THEM TO SIGN THIS PROCLAMATION, SAYING THAT SAFE AND SECURE STORAGE IS GOING TO PROTECT OUR CHILDREN AND OUR FAMILIES.

AND SO IT IS SO IMPORTANT, AND WE ARE SO HONORED AND PLEASED THAT THE CITY OF LENEXA IS A PART OF THIS, AND WE CANNOT THANK YOU ENOUGH. OF COURSE. [APPLAUSE] LET'S DO ONE PICTURE, AND I'M GOING TO HAVE YOU GUYS STAY HERE AND WE'LL JUST DO ALL THE ORANGE TOGETHER, OKAY? OKAY. THANK YOU. THANK YOU. AND THEN FOR GUN VIOLENCE AWARENESS DAY.

KATIE MANGELSDORF AND HER GROUP WITH MOMS DEMAND.

WE'LL HAVE EVERYBODY UP AT THE END. WHEREAS GUN VIOLENCE TAKES THE LIVES OF 125 PEOPLE AND INJURES OVER 260 MORE EACH DAY IN THE U.S., WITH KANSAS AVERAGING 473 GUN DEATHS ANNUALLY AND A SIGNIFICANT FINANCIAL BURDEN TO TAXPAYERS.

AND WHEREAS AMERICANS ARE 26 TIMES MORE LIKELY TO DIE BY GUN HOMICIDE THAN PEOPLE IN OTHER HIGH INCOME NATIONS WITH GUN VIOLENCE HEAVILY CONCENTRATED IN CITIES.

WHEREAS, MAYORS, COUNCIL MEMBERS AND LAW ENFORCEMENT ALONGSIDE LOCAL ADVOCATES ARE UNIQUELY POSITIONED TO IMPLEMENT EVIDENCE BASED SOLUTIONS TO REDUCE GUN VIOLENCE IN THEIR COMMUNITIES. AND WHEREAS WEARING ORANGE ON NATIONAL GUN VIOLENCE AWARENESS DAY, INSPIRED BY THE MEMORY OF HADIYA HADIYA PENDLETON, GET IT WRONG EVERY YEAR HONORS, EXCUSE ME, THE VICTIMS AND SURVIVORS OF GUN VIOLENCE AND SURVIVORS AND SYMBOLIZES THE VALUE OF HUMAN LIFE.

AND WHEREAS ON JUNE 5TH, 2026, PEOPLE ACROSS THE COUNTRY WILL WEAR ORANGE TO RAISE AWARENESS, PROMOTE RESPONSIBLE GUN OWNERSHIP, AND RENEW THE COMMITMENT TO KEEPING FAMILIES AND COMMUNITIES SAFE.

NOW, THEREFORE, I, JULIE SAYERS, MAYOR OF LENEXA, KANSAS, DO HEREBY PROCLAIM JUNE 5TH, 2026 IN THE CITY OF LENEXA TO BE GUN VIOLENCE

[00:10:07]

I'M A LENEXA RESIDENT OF WARD 1. THANK YOU MAYOR SAYERS AND COUNCIL MEMBERS.

I'M HAPPY TO BE HERE ONCE AGAIN TO ACCEPT THIS PROCLAMATION FOR MY 8TH YEAR.

WEAR ORANGE IS A TIME FOR EVERYONE IN OUR COMMUNITY TO COME TOGETHER TO SHOW OUR COLLECTIVE POWER IN ADDRESSING GUN VIOLENCE.

WHEN HIGH SCHOOL STUDENT HADIYA PENDLETON WAS SHOT AND KILLED IN 2013, HER FRIENDS TURNED THEIR GRIEF INTO ACTION AND WORE ORANGE TO RAISE AWARENESS ABOUT GUN VIOLENCE PREVENTION. THIS JUNE MARKS THE 12TH YEAR WILL BE COMING TOGETHER TO WEAR ORANGE AND TAKE ACTION.

ON JUNE 5TH, SIXTH, AND SEVENTH, WE'LL HONOR ALL LIVES TAKEN AND INJURED BY GUN VIOLENCE.

AS PART OF NATIONAL GUN VIOLENCE AWARENESS DAY, COMMEMORATED EVERY YEAR ON THE FIRST FRIDAY IN JUNE.

THEN, THROUGHOUT THE WEEKEND, WE'LL CONTINUE TO TURN JOHNSON COUNTY ORANGE AS WE BRING TOGETHER MEMBERS OF OUR COMMUNITY TO SHOW OUR SOLIDARITY AS WE WORK TO PREVENT GUN VIOLENCE. JOIN US ON SATURDAY, JUNE 6TH AT 9 A.M.

FOR OUR KC METRO WEAR ORANGE AT ALVIN BROOKS JUSTICE CENTER ON THE ROCKHURST UNIVERSITY CAMPUS AT 5401 TROOST IN KANSAS CITY, MISSOURI. ALL ARE WELCOME AT THIS EVENT TO HONOR SURVIVORS AND RAISE AWARENESS ABOUT THE WORK OF GUN VIOLENCE PREVENTION IN OUR COMMUNITY.

WE'RE COUNTING ON YOU TO BE WITH US IN JOHNSON COUNTY.

[APPLAUSE] COME ON. DO THE GRANDPARENTS WANT TO COME BACK UP AND JOIN? OF COURSE.

OKAY.

OKAY, OKAY. OKAY. JUST HIDE HIM RIGHT THERE. I DON'T THINK HE'S HERE.

BEHIND ME. YEAH. THEY HAVE A WIDE ANGLE. LOOK UP AT THE CAMERA. THANK YOU.

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

NICE TO MEET YOU. THANK YOU, THANK YOU.

OKAY. UP NEXT, WE HAVE OUR 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT.

[PRESENTATIONS]

WE HAVE CHESTER MOYER HERE WITH REUBEN BROWN, OUR AUDITOR AUDIT FIRM, TO GO OVER THE 2025 AUDIT RESULTS.

BEFORE HE DOES THAT, THOUGH, I DO WANT TO THANK MEGAN STERLING, ASSISTANT CFO, FOR TAKING THE LEAD ON THIS AUDIT AND WORKING WITH CHESTER'S TEAM, AS WELL AS PUTTING TOGETHER THE DOCUMENT OVER THE LAST 6 TO 9 MONTHS.

IT TOOK A LOT OF WORK. SO I REALLY APPRECIATE THAT.

AND WITH THAT, I WILL TURN IT OVER TO CHESTER.

HONORABLE MAYOR, CITY COUNCIL MEMBERS, THANK YOU FOR HAVING ME TONIGHT. MY NAME IS CHESTER MOYER. I AM THE AUDIT PARTNER FROM REUBEN BROWN THAT IS IN CHARGE OF YOUR EXTERNAL AUDIT.

AND I JUST WANT TO THANK YOU AGAIN FOR TRUSTING US WITH THE IMPORTANT SERVICE OF AUDITING THE CITY'S FINANCIAL STATEMENTS.

SO WITH THIS PRESENTATION, I'LL BE GOING OVER A HIGH LEVEL SUMMARY OF OUR REQUIRED AUDIT OR COMMUNICATIONS TO GOVERNANCE AT THE CONCLUSION OF OUR AUDIT.

BEFORE I DO THAT, I JUST WANTED TO GIVE YOU AN IDEA OF THE TEAM MEMBERS WE HAD WORKING ON IT.

SO I'M SUPERVISED OR OVERSEEN BY A QUALITY CONTROL PARTNER THAT ROTATES EVERY YEAR.

AND THIS TIME IT WAS JEFF WINTER. WE'RE PLEASED TO HAVE HIM AS A PART OF THAT ENGAGEMENT.

THERE WERE 3 OTHER TEAM MEMBERS THAT WORKED WITH ME A LOT ON THIS ENGAGEMENT, AND 3 OTHERS THAT MADE SIGNIFICANT CONTRIBUTIONS, AND IF YOU ADD ALL THEM UP, THAT'S A LOT MORE THAN THAN MEGAN, WHO WAS THE PRIMARY PERSON THAT WE MADE OUR REQUEST TO.

SO WE APPRECIATE THE COORDINATION THAT MANAGEMENT HAD WITH US, RESPONSIVENESS TO OUR REQUESTS.

AND, AND IT WAS OVER QUITE A LONG PERIOD OF TIME, AS WE'LL SEE ON THE NEXT SLIDE.

SO OUR PLANNING BEGINS IN THE FALL, AND THAT'S WHEN WE DO OUR PRELIMINARY PROCEDURES AND KIND OF GOES OFF AND ON THROUGH THE WINTER MONTHS, AND THEN REALLY PICKS UP AGAIN AT THE END OF MARCH AND IS HEAVY IN APRIL AND IN MAY WHEN WE DO OUR SUBSTANTIVE IN DEPTH AND COMPLIANCE TESTING.

SO AGAIN, WE'RE WORKING WITH ALL THE MEMBERS OF THE ACCOUNTING GROUP THERE DURING THOSE MONTHS,

[00:15:02]

SO TO SUMMARIZE THE RESULTS OF OUR AUDIT YOU DO HAVE A DRAFT OF THE FINANCIAL STATEMENT WITHIN YOUR PACKET.

WE DON'T EXPECT ANY SIGNIFICANT CHANGES IN OUR FINAL QUALITY CONTROL PROCESS.

SO WITH THAT, WE'RE EXPECTING TO ISSUE AN UNMODIFIED OR CLEAN OPINION ON THE FINANCIAL STATEMENTS.

SO THAT'S THE HIGHEST LEVEL OF OPINION THAT WE OFFER AS AUDITORS THIS YEAR.

THERE WERE NO NEW ACCOUNTING POLICIES OR NO NEW ACCOUNTING STANDARDS IMPLEMENTED BY THE CITY. NEXT YEAR THERE IS ONE.

MEGAN AND I WERE TALKING ABOUT IT TONIGHT. WE'LL MAKE SURE THAT THE CITY IS PROPERLY IMPLEMENTING THAT BEFORE THE CLOSE OF THIS YEAR.

AS A RESULT OF OUR AUDIT, WE ARE REQUIRED TO COMMUNICATE TO YOU ANY SIGNIFICANT ESTIMATES THAT THE CITY HAS WITHIN ITS FINANCIAL STATEMENTS.

AND YOU HAD ACTUARIES INVOLVED IN THE PREPARATION OF SOME OF THE FINANCIAL INFORMATION.

AND WE DID EVALUATE THEIR WORK AROUND THE PENSION AND OTHER POST-EMPLOYMENT BENEFITS CALCULATIONS, AS WELL AS AN INVESTMENT VALUATION. SO WE DEEMED ALL THOSE ESTIMATES TO BE REASONABLE FOR THE PURPOSES OF THIS AUDIT.

WE ALSO COMMUNICATE TO YOU ANY SIGNIFICANT DISCLOSURES THAT ARE IN THE FINANCIAL STATEMENTS.

AND SO WE'RE REPORTING 2 OF THEM TO YOU. ONE IS THE DEPOSITS AND INVESTMENTS THAT THE CITY HOLDS AS WELL AS THE LONG TERM DEBT.

SO THOSE ARE THE OBLIGATIONS THAT THE CITY HAS TO PAY BACK.

WE'RE REQUIRED TO COMMUNICATE TO YOU IF WE MADE ANY ADJUSTMENTS DURING THE COURSE OF OUR AUDIT, OR IF THERE ARE ANY ADJUSTMENTS LEFT UNMADE AT THE END OF THIS AUDIT OR ANY OMITTED DISCLOSURES.

AND WE HAVE NONE TO REPORT. AND OF COURSE, WE'RE PLEASED TO REPORT THAT THERE WERE NO DISAGREEMENTS WITH MANAGEMENT THROUGHOUT THE COURSE OF THIS AUDIT.

IN ADDITION TO THE EXTERNAL FINANCIAL STATEMENTS, WE ALSO ARE ENGAGED TO DO SEVERAL OTHER THINGS FOR THE CITY, AND ONE OF THEM IS THE FEDERAL FUNDS AUDIT, WHICH IS DONE IN CONJUNCTION WITH THE AUDIT.

SO THE FEDERAL FUNDS AUDIT. THIS YEAR, WE WERE REQUIRED TO AUDIT TWO GROUPINGS, LET'S SAY, OF FEDERAL FUNDING. ONE WAS THE HIGHWAY SAFETY IMPROVEMENT PROGRAM, AND THEN THE OTHER WAS THE HIGHWAY PLANNING AND CONSTRUCTION PROGRAM.

SO BOTH OF THOSE AUDITS RESULTED IN NO COMPLIANCE OR CONTROL FINDINGS.

SO CLEAN WORK FROM THAT STANDPOINT. WE WOULD ALSO ISSUE YOU A MANAGEMENT LETTER IF THERE WERE ANY SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES THAT WE IDENTIFIED IN INTERNAL CONTROL. SO WHEN WE'RE WORKING THROUGH OUR AUDIT PROCESS, WE ARE TALKING WITH A LOT OF DIFFERENT PEOPLE LOOKING AT A LOT OF DIFFERENT ACCOUNTS.

AND AS A BYPRODUCT OF THAT WORK, WE MIGHT SEE SOME INTERNAL CONTROL WEAKNESSES THAT WE WOULD BE REQUIRED TO REPORT TO YOU.

AND WE HAVE NONE TO REPORT. AND THEN FINALLY, AS A PART OF OUR OVERALL ENGAGEMENT.

WE DO AN AUDIT OF THE FIREFIGHTERS RELIEF ASSOCIATION.

THEY DO HAVE A SEPARATE GOVERNANCE STRUCTURE, BUT THAT IS PART OF OUR ENGAGEMENT AND WE DON'T HAVE ANY MATTERS TO REPORT TO YOU AS A RESULT OF THAT EFFORT. SO THAT CONCLUDES THE REQUIRED AUDITOR COMMUNICATIONS.

ONE OF THE THINGS THAT THAT I WANT TO POINT OUT IS THAT WHEN WE PERFORM OUR AUDIT, THAT THE FINANCIAL STATEMENT, THE [INAUDIBLE] AS IT WAS CALLED, IS, YOU KNOW, OVER 200 PAGE DOCUMENT.

AND WE AUDIT THE BASIC FINANCIAL STATEMENTS, WHICH ARE KIND OF IN THE MIDDLE OF THAT DOCUMENT. AND THE BEGINNING IS THE INTRODUCTORY SECTION. AND IN THE END IS A STATISTICAL SECTION.

AND WE DO READ THROUGH THAT INFORMATION AND MAKE SURE IT'S CONSISTENT WITH WHAT WAS AUDITED. BUT IT IS THOSE BOTH OF THOSE SHOW A LOT OF GOOD INFORMATION TO HELP EXPLAIN WHAT HAPPENED DURING THE FINANCES FOR DURING THE COURSE OF THE YEAR.

AND THE STATISTICAL SECTION IN PARTICULAR SHOWS 10 YEARS OF DATA.

SO WHEN I LOOK AT THAT INFORMATION, WHAT ARE TWO THINGS THAT I, THAT I PULL OUT.

AND SO THE NEXT COUPLE SLIDES, I JUST WANTED TO HIGHLIGHT THEM.

ONE OF THEM IS TO ASSESS THE NEAR-TERM FINANCIAL POSITION OF, OF A GOVERNMENT, A STATE AND LOCAL GOVERNMENT.

AND ONE OF THE WAYS I DO THAT IS JUST BY LOOKING AT THE GENERAL FUND, WHICH IS THE MAIN FUND FOR THE CITY AND ITS UNASSIGNED FUND BALANCE.

AND YOU CAN SEE WE HAVE A CHART HERE OF THE UNASSIGNED FUND BALANCE AT THE CITY OF LENEXA SINCE 2020 THROUGH 2025.

AND YOU CAN IMAGINE AND REMEMBER ALL THE THINGS THAT HAVE HAPPENED SINCE 2020.

AND THROUGHOUT THAT TIME, THE CITY HAS MANAGED AN UNASSIGNED FUND BALANCE WITHIN THE GENERAL FUND ABOVE $40 MILLION.

SO DEMONSTRATING A AN EFFORT TO MANAGE TO THAT END SUCCESSFULLY.

AND THEN SECONDLY, THERE'S THERE'S 2 TYPES OF FINANCIAL STATEMENTS THAT ARE WITHIN THE BASIC FINANCIAL STATEMENTS.

1 OF THEM IS HELPING ASSESS THIS NEAR-TERM FINANCIAL INFORMATION THAT WE AUDITED.

AND THEN WE ALSO AUDIT UNDER A DIFFERENT FRAMEWORK THAT REPORTS ALL OF THE ASSETS, THE LONG TERM ASSETS THAT THE CITY IS ALSO ACQUIRING OR BUILDING THROUGHOUT THE YEAR.

SO YEARS. THAT WOULD INCLUDE THE BUILDINGS AND THE STREETS AND THINGS LIKE THAT. AND ONE OF THE THINGS THAT WE LOOK AT IS A TREND OF THE ENDING NET POSITION THAT INCLUDES ALL THOSE LONG TERM ASSETS. AND IF YOU LOOK AT THE TABLE AT THE BOTTOM, WORKING FROM 2023 THROUGH 2025, YOU CAN SEE THAT BALANCE CONTINUES TO INCREASE.

AND THAT JUST REFLECTS THE INVESTMENT THAT THE CITY HAS CONTINUED TO MAKE OVER THOSE YEARS.

SO THAT CONCLUDES MY PREPARED REMARKS RELATED TO THE AUDIT WITH A LITTLE EXTRA ANALYSIS AT THE END, I'D BE HAPPY TO ANSWER ANY QUESTIONS OR TAKE ANY COMMENTS ANYONE HAS ABOUT THE AUDIT.

[00:20:02]

NOBODY. OKAY. WELL, WE KNOW, AS ALWAYS, YOU DO A VERY THOROUGH JOB.

AND THANK YOU, STAFF, FOR FACILITATING ANOTHER GREAT CLEAN AUDIT.

THANK YOU. OKAY. UP NEXT, DO YOU HAVE ANYTHING ELSE? NO. OKAY. UP NEXT IS THE CONSENT AGENDA. THERE ARE 6

[CONSENT AGENDA]

IF ANYONE FROM THE AUDIENCE, CITY MANAGER OR MEMBER OF THE GOVERNING BODY, WHICH IS TO REMOVE AN ITEM, IT WILL BE PLACED ON THE REGULAR AGENDA FOR DISCUSSION.

ITEMS WE'VE ALREADY DECIDED ON ITEM SEVEN. ANYONE ELSE WISH TO REMOVE AN ITEM FOR DISCUSSION? SEEING NONE, I'LL ENTERTAIN A MOTION FOR ITEMS 1 THROUGH 6.

SECOND. THAT SOUNDED LIKE JOHN, MICHAEL AND AVERY.

ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? ITEM 7 IS CONSIDERATION OF AN ORDINANCE AND RESOLUTIONS AUTHORIZING THE SALE OF GENERAL

[7. Consideration of an ordinance and resolutions authorizing the sale of general obligation bonds, Series 2026A, and general obligation temporary notes, Series 2026B, in the principal amount not to exceed $47.8 million]

ITEM 7.B IS A RESOLUTION AUTHORIZING THE SALE AND DELIVERY OF GENERAL OBLIGATION BONDS SERIES 2026 A AND THE PRINCIPAL AMOUNT NOT TO EXCEED 32 MILLION.

ITEM 7.C IS A RESOLUTION AUTHORIZING THE SALE AND DELIVERY OF GENERAL OBLIGATION.

TEMPORARY NOTES SERIES 2026.B IN THE PRINCIPAL AMOUNT NOT TO EXCEED 15.8 MILLION.

NATE. GOOD EVENING, MAYOR AND COUNCIL THIS ITEM IS KIND OF THE FINAL STEP IN THE AUTHORIZATION TO ISSUE BONDS LATER THIS MONTH.

IT DOES A COUPLE OF THINGS. IT AUTHORIZES THE MAYOR TO AWARD THE BONDS IMMEDIATELY AFTER SALE ON JUNE 10TH.

ASSUMING THE BIDS MEET LEGAL AND PARAMETER REQUIREMENTS, THE CITY MANAGER WOULD BE BACK UP IF THE MAYOR IS UNAVAILABLE.

AND THEN SECONDLY, IT SETS THE PARAMETERS FOR THE SALE, INCLUDING THE MAX PRINCIPAL AMOUNT AND THE MAX INTEREST RATE FOR THE BONDS AND NOTES.

THIS MAX CEILING IS HIGHER THAN THE ESTIMATES YOU'VE SEEN BEFORE BECAUSE IT IS ADJUSTING OR GIVING US A LITTLE BIT OF PADDING FOR ANY MARKET MOVEMENTS FOR THE DAY OF SALE.

AS YOU KNOW, THE BOND MARKET CHANGES CONSISTENTLY.

WE'RE SEVERAL OR A COUPLE WEEKS OUT. SO THIS WOULD GIVE US SOME LEEWAY FOR ANY MOVEMENT.

AND REALLY WHAT THAT DOES IS IT DETERMINES THE MARKET KIND OF DETERMINES WHETHER WE GET A PREMIUM OR DISCOUNT ON THE BONDS.

SO A PREMIUM, WE WOULD ACTUALLY LOWER THE PAR VALUE OR PRINCIPAL AMOUNT OF THE BONDS BECAUSE WE WOULD RECEIVE CASH TO FUND THE PROJECTS.

IF WE GET A BID WHERE THERE'S A DISCOUNT INVOLVED, THE PAR AMOUNT OF THE BONDS WOULD GO UP BECAUSE WE'D BE PAYING PREPAYING SOME INTEREST.

SO THAT'S KIND OF HOW THAT WORKS. THIS IS A STANDARD PRACTICE FOR THE CITY.

WE'VE BEEN USING THIS METHOD FOR SEVERAL YEARS.

JUST KIND OF HISTORICAL CONTEXT. I LOOKED BACK AT THE JUSTICE CENTER BONDS THAT WERE ISSUED IN 2021.

AGAIN, WE HAD AN ORIGINAL ESTIMATE AMOUNT THAT WAS APPROVED.

WE ALSO BROUGHT FORTH A PARAMETERS RESOLUTION, AND THEN I'LL JUST QUICKLY GO OVER A COUPLE OF THE FINAL SALES INFORMATION.

SO THE ORIGINAL ESTIMATE FOR THE PRINCIPAL WAS $37.4 MILLION.

THE PARAMETER RESOLUTION THAT WE BROUGHT BEFORE THE COUNCIL AT THAT TIME ALLOWED US TO GO UP TO 39.4 MILLION.

SO ABOUT A $2 MILLION BUFFER FOR MARKET MOVEMENT.

AFTER THE SALE, THE ACTUAL PRINCIPAL AMOUNT WAS 36 MILLION.

SO IT CAME IN BELOW THE ESTIMATE AND THE PARAMETER.

AND ON THE INTEREST SIDE IT'S KIND OF CRAZY TO SEE THESE NUMBERS LOOKING BACK NOW, BUT THE ORIGINAL ESTIMATE WAS 1.75%.

THE PARAMETERS GAVE US LEEWAY UP TO 2.75%, WHICH IS A 1% BUFFER.

THE ACTUAL INTEREST RATE RECEIVED WAS 1.69%. SO AGAIN, BEATING BOTH THE ORIGINAL ESTIMATE AND THE PARAMETERS.

IF THIS WAS AND THIS WAS A PREMIUM, WE DID RECEIVE A PREMIUM ON THIS.

SO THAT'S WHY THE PARAMOUNT WENT DOWN. IF WE WERE TO RECEIVE A DISCOUNT IN THIS SITUATION, THE PRINCIPAL AMOUNT WOULD HAVE BEEN BETWEEN THE ESTIMATE AND THE PARAMETER MAX.

SO HOPEFULLY THAT HELPS A LITTLE BIT. WITH SOME CLARIFICATION.

I CAN ANSWER ANY MORE QUESTIONS. YOU HAVE ANY OTHER QUESTIONS? GO AHEAD. IF I REMEMBER CORRECTLY, WE HAD QUITE A SIGNIFICANT INTEREST LAST TIME WE DID THIS.

MAYBE 9 BIDDERS OR SO. CORRECT. WE DID RECEIVE SOME GOOD COMPETITION ON THESE.

YES. TYPICALLY WE DEFINITELY WANT TO SEE 2. ANYTHING ABOVE 3 IS GREAT AND 9 IS EXCEPTIONAL.

OKAY. WELL, WE'LL HOPE FOR THAT AGAIN. OKAY. THERE'LL BE 3 MOTIONS ON THIS.

[00:25:06]

MOTION BY CRAIG, SECOND BY BILL. ALL THOSE IN FAVOR? THOSE OPPOSED. MOTION PASSES. ENTERTAIN A MOTION TO ADOPT THE RESOLUTION AUTHORIZING THE SALE AND DELIVERY OF GENERAL OBLIGATION BONDS SERIES 2026 A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $32 MILLION. MOTION BY BILL. SECOND BY MARK.

THOSE IN FAVOR? AYE. THOSE OPPOSED. MOTION PASSES.

NUMBER 3. ENTERTAIN A MOTION TO ADOPT THE RESOLUTION AUTHORIZING THE SALE AND DELIVERY OF TEMPORARY NOTES SERIES 2026 B AND THE PRINCIPAL AMOUNT NOT TO EXCEED 15.8 MILLION.

SECOND. MOTION BY CRAIG. SECOND BY BILL. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED. MOTION PASSES. ITEM NUMBER 8 IS A PUBLIC HEARING TO CONSIDER REPAIRS OR DEMOLITION OF THE FIRE DAMAGED STRUCTURE AT 220826 WEST 89TH TERRACE, WHICH IS BEING CONTINUED UNTIL THE JULY 7TH, 2026 CITY COUNCIL MEETING AT STAFF'S REQUEST. ITEM NUMBER 9 IS A PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2027 COMMUNITY DEVELOPMENT BLOCK GRANT INFRASTRUCTURE PROJECTS.

[9. Public hearing to consider fiscal year 2027 Community Development Block Grant infrastructure projects]

BUT THIS IS THE PUBLIC HEARING FOR THE 2027 CDBG, PROJECT AND JUST RECENT HISTORY.

WE HAVE A CURRENT MEMORANDUM OF UNDERSTANDING THAT WAS APPROVED IN LATE 2024.

AND IT CARRIES US THROUGH 25 THROUGH 27. IT SETS HOW THE CDBG PROGRAM, WHICH IS ADMINISTERED BY THE COUNTY AFFECTS US.

BASICALLY, WE GET A PERCENTAGE OF THE CDBG FUNDS THAT GO TO THE COUNTY.

THAT PERCENTAGE IS BASED ON OUR POPULATION VERSUS THE COUNTY POPULATION, LESS OVERLAND PARK AND SHAWNEE BECAUSE THEY'RE ENTITLED CITIES.

SO THAT AMOUNTS ABOUT 16% OR IT WAS LAST YEAR.

SO WE'LL BE IN THAT BALLPARK. WHICH EQUATES TO ABOUT 165/170,000 A YEAR IS WHAT WE WILL RECEIVE.

FOR THE LAST 20 PLUS YEARS. WE'VE ALWAYS USED IT ON A PUBLIC FACILITIES PROJECT, WHICH IS STREETS.

MOST OF THE STREETS IN OLD TOWN WERE UPGRADED WITH CDBG FUNDS AND A COMBINATION OF CITY FUNDS, STREET LIGHTING, LOW TECH WAS ACTUALLY UPGRADES ABOUT 15 YEARS AGO.

WE USED CDBG FUNDS FOR THOSE, SO WE'VE TYPICALLY ALWAYS USED IT ON PUBLIC IMPROVEMENT PROJECT.

THE REASON IS WE TYPICALLY HAVE A MATCH FOR THAT IN OUR CIP.

SO WE'RE NOT CREATING NEW MONEY FOR A MATCH FOR THIS.

WE JUST MATCH AN EXISTING PROJECT THAT'S IN THE CIP.

IN THE LAST 5 YEARS, WE'VE USED IT SPECIFICALLY AS A MATCH FOR OUR ANNUAL STREETLIGHT REPLACEMENT PROGRAM.

IN LENEXA, THE AREAS THAT ARE IN YELLOW ARE THE CDBG, LOW TO MODERATE INCOME AREAS OR THE AREAS THAT ARE ELIGIBLE FOR CDBG FUNDS.

THE WORK THAT WE PERFORM HAS TO BE COMPLETED IN, IN ONE OF THESE AREAS.

YOU CAN SEE THAT IT'S BASICALLY THE I 435 LOOP.

IS WHERE, WHERE THAT SETS AND JUST TAKING A LOOK AND SORRY, THE COLOR IS NOT GREAT ON HERE, BUT OVER THE LAST 5 YEARS OR 6 YEARS THESE AREAS IN BLUE ARE THE AREAS WHERE WE'VE MADE IMPROVEMENTS TO OUR STREET LIGHTING SYSTEM.

BASICALLY REPLACE THE EXISTING SYSTEM, WHICH IS TYPICALLY THE OLD WOOD POLES AND OVERHEAD LIGHTS.

SOME OF THEM WERE EVERGY LIGHTS AND REPLACED THEM WITH OUR, OUR MODERN POST OP LIGHTS.

I THINK THERE'S 6 AREAS SHOWN HERE. I THINK WE HAVE ABOUT 5, 4 TO 5 YEARS LEFT OF PROJECTS THAT WILL BASICALLY REMOVE AND REPLACE ALL OF THE EXISTING LIGHTS IN THE CDBG AREA.

SO WE'VE GOT A FEW MORE YEARS THAT WE CAN USE THIS FUNDING FOR CDBG, BUT STARTING IN ABOUT 2030, WE'LL HAVE TO START LOOKING FOR OTHER PROJECTS, STREET PROJECTS, OR SOME OTHER USE FOR THE CDBG FUNDS.

AND WHILE THIS IS A PUBLIC HEARING, I WANT TO OPEN IT UP TO THE PUBLIC.

STAFF'S RECOMMENDATION WOULD BE ADJACENT TO THE PENNY GREEN SUBDIVISION, BASICALLY IMPROVED STREET LIGHTING ALONG MARSHALL DRIVE FROM 95TH DOWN TO 98TH AND THEN ALONG 98TH FROM BLACKMAN OVER TO MARSHALL.

THERE'S ABOUT 20 TO 25 LIGHTS IN THAT AREA. RIGHT NOW WE PAY ABOUT $10,000 PER LIGHT FOR PER STREET LIGHT TO REMOVE AND REPLACE IT.

SO OUR, OUR 165/170,000. WE USUALLY ADD ABOUT 120 TO 130 TO THAT.

[00:30:07]

SO A LOT OF MONEY, BUT IT DOESN'T GO A LONG WAY WITH REPLACING LIGHTS.

BUT AS WE ADDED UP THROUGH THE YEARS, WE'VE DONE A LOT OF GOOD WORK ON ON STREET LIGHTING REPLACEMENT.

JUST QUICKLY, THE SCHEDULE ITSELF JUNE 12TH IS WHEN OUR APPLICATIONS ARE DUE TO THE COUNTY, EVEN THOUGH WE ARE SOMEWHAT GUARANTEED THE 165/170,000 A YEAR, WE STILL HAVE TO SUBMIT AN APPLICATION FOR THAT PROJECT TO THE COUNTY.

THE COUNTY THEN GOES THROUGH IT TO MAKE SURE IT MEETS ALL OF THE HUD REQUIREMENTS.

THEY MAKE SURE IT MEETS ALL THE ENVIRONMENTAL REQUIREMENTS. AND IF IT DOES, THEN WE'RE AWARDED THE FUNDING ITSELF.

SO IT'S ABOUT A 10 TO 20 PAGE APPLICATION THAT WE SUBMIT EACH YEAR ON THAT.

IN OCTOBER, JOHNSON COUNTY WILL HOLD THE PUBLIC HEARING ON THE PROPOSED ACTION PLAN FOR ALL OF CDBG.

JANUARY, FEBRUARY, WE'LL GET A EMAIL OR LETTER FROM THE COUNTY GIVING US PRELIMINARY AWARD.

THAT FINAL AWARD IS TYPICALLY IN APRIL MAY, BUT IT'S TYPICALLY OCTOBER OR NOVEMBER BEFORE WE ACTUALLY GET THE CONTRACTS TO US AND AWARDED.

HENCE, AND I THINK YOU'LL SEE NEXT COUNCIL MEETING, WE GET BEHIND A YEAR ON THE PROJECTS BECAUSE WE DON'T ACTUALLY GET OUR AGREEMENTS UNTIL OCTOBER AND NOVEMBER, WHICH WE CAN'T GET A PROJECT BID AND LET AND BY THE END OF THE YEAR.

SO THEY TYPICALLY KIND OF CARRY OVER A YEAR. BUT THIS IS PRETTY STANDARD OVER THE LAST 5 YEARS ON WHAT THE SCHEDULE IS AND WILL CONTINUE TO BE.

AND WITH THAT, I WOULD ASK THAT WE HOLD A PUBLIC HEARING AND SOLICIT INPUT ON ANY RECOMMENDED PROJECTS THAT PUBLIC MAY HAVE OR RECOMMENDATION ON STAFF'S PROJECT. THANK YOU. DISCUSSION FROM COUNCIL BEFORE WE OPEN THE PUBLIC HEARING BILL.

THANK YOU. TIM. DO WE DO WE DO THE REPLACEMENT IN HOUSE, OR DO WE CONTRACT THAT? NO, WE CONTRACT THAT OUT. OKAY. YES. THANK YOU.

OKAY. ANYTHING ELSE? TIM. MARK. THANK YOU. WHAT WAS THE CURRENT ONE? IS IT KIND OF WRAPPING UP RIGHT NOW OR IS THAT UNDER CONSTRUCTION RIGHT NOW? IT'S CURRENTLY RIGHT NOW WE'RE JUST SOUTH.

WE'RE AT AND I EXCUSE ME, I CAN'T REMEMBER THE SUBDIVISION, BUT 87TH AND CANDLELIGHT, THE SOUTH EAST CORNER OF IT'S CANDLELIGHT, PARK STREET, WIDMER, THAT AREA IN THERE, WE'VE ORDERED ALL THE STREET LIGHTING.

WE'VE GOT A CONTRACTOR ON BOARD. WE'RE JUST WAITING FOR THE LIGHTS TO COME IN.

WE THINK WE WILL BE DONE BY THE END OF JUNE, 1ST OF JULY WITH THAT WORK.

SO I'M STILL BAD ON THOSE. I'M SORRY. LEAD TIME, STILL BAD ON STREET LIGHTS.

IT'S ABOUT 90 DAYS. OKAY. YEAH. AND TO CLARIFY, BILL, ON YOUR QUESTION OF BIDDING IT, WE HAVE TO FOLLOW ALL THE FEDERAL AND STATE REQUIREMENTS. SO WE HAVE TO GO OUT FOR BID. WE HAVE TO GIVE THE 30 DAYS PUBLICATION, ALL OF THOSE SORT OF THINGS, DAVIS-BACON WAGE RATES. ALL OF THOSE. SO IT'S MUCH EASIER JUST TO BID THOSE OUT.

THANK YOU. OKAY. ANYTHING ELSE? OKAY. I WILL NOW OPEN THE PUBLIC HEARING.

ANYONE PRESENT WHO WOULD LIKE TO SPEAK ON THIS ITEM? PLEASE COME FORWARD TO THE PODIUM. SIGN IN. STATE YOUR NAME AND ADDRESS FOR THE RECORD. AND AS USUAL, YOU HAVE 3 MINUTES. GAYLENE VANHORN 8131 ROSE HILL ROAD.

THE QUESTION I HAVE IS WHEN YOU CONTRACT THEM OUT, IS THAT AMOUNT UNDER THE THE BLOCK GRANT, OR IS THAT SOMETHING THAT'S PAID IN ADDITION TO FROM THE GENERAL FUNDS OF THE CITY FOR THAT CONTRACTING? YEAH. THANK YOU. TYPICALLY OUR, OUR BUDGET THAT WE SUBMIT TO THE COUNTY IS ABOUT THE 300,000 170,000 OF THAT IS CDBG FUNDS. THE OTHER 130 000 IS CURRENTLY APPROVED IN OUR CAPITAL AND APPROVED CAPITAL IMPROVEMENT PROGRAM UNDER THE STREET LIGHT MAINTENANCE LINE ITEM. SO THERE'S ABOUT A 5050 SPLIT. ACTUALLY, I THINK LAST YEAR WE WERE MORE LIKE 75 CDBG, 25 CITY, BUT WE TRY TO GET A DECENT SIZED PROJECT AND THEN MATCH THE CITY FUNDS TO THE CDBG FUNDS.

SO IT'S A COMBINATION OF BOTH. THANK YOU. OKAY.

ANYTHING ELSE ON CDBG? SEEING NONE, I'LL ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING.

SECOND. MOTION BY CRAIG, SECOND BY AVERY. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? PUBLIC HEARING HAS BEEN CLOSED.

THERE'S NOTHING FURTHER ON THIS ITEM. THANK YOU. ITEM NUMBER 10 IS THE APPROVAL OF A FINAL PLAN FOR A MIXED USE DEVELOPMENT KNOWN AS THE RISE LENEXA CITY CENTER, EAST VILLAGE AND THE. LOCATED AT THE SOUTHEAST CORNER OF 87TH AND RENNER IN THE CITY CENTER.

PLAN. CITY CENTER DISTRICT. IT HAS BEEN WITHDRAWN BY THE APPLICANT.

[00:35:04]

[COUNCILMEMBER REPORTS]

SO. BUT WE'LL HAVE THE JUNE 9TH COMMITTEE OF THE WHOLE WILL BE CANCELED.

THANK YOU SO MUCH. NOW WE HAVE THE. MIKE WANTED TO MAKE ONE ANNOUNCEMENT, TOO.

THANK YOU. IF YOU DON'T RECALL, WE HAVE A PITCH LENEXA WATCH PARTY NEXT FRIDAY.

I WON'T BE SEEING YOU UNTIL THEN. SO I WANTED TO REMIND EVERYBODY THAT GATES OPEN AT 5 P.M., RIGHT ACROSS THE STREET FROM SAINTS AND MARTIN CITY.

COME HAVE A GOOD TIME. WATCH THE U.S. MEN TAKE ON PARAGUAY AT 8:00.

IT SHOULD BE A FUN TIME. YEAH, WE'VE BEEN TALKING ABOUT IT FOR 3 YEARS.

LET'S DO IT. FINALLY. ALL RIGHT. YES. NATE, HOW ABOUT THE QUARTERLY FINANCIAL REPORT?

[11. Quarterly Financial Report]

AS YOU KNOW, THIS IS UNAUDITED AND PRESENTED ON A CASH BASIS.

THE FINANCIALS THAT WE TALKED ABOUT EARLIER ARE PRESENTED ON A MODIFIED ACCRUAL OR FULL ACCRUAL BASIS.

WE HAVE 5 KEY INDICATOR AREAS HERE AND OUR HANDY DANDY COLOR CODING RATING SCALE.

AS OF 331 TOTAL REVENUES AS FAR AS KEY REVENUES FOR THE CITY INCREASED 1.2 MILLION OVER THE SAME PERIOD LAST YEAR.

THAT'S 3% FOR THE 3 KEY INDICATOR FUNDS. ALL EXPENDITURES AND FOR OPERATING ACTIVITIES ARE WITHIN BUDGET SO FAR FOR 26 LOOKING AT REVENUES, PROPERTY TAXES INCREASED 2%, WHICH IS RIGHT WHERE WE ANTICIPATED THEY WOULD BE.

WE'RE ACTUALLY RECEIVING OUR SECOND HALF DISTRIBUTION LATER THIS WEEK FROM THE COUNTY.

CITY SALES TAX INCREASED 9% OVER THE SAME PERIOD LAST YEAR.

WE'RE ABOUT 25% OF THE WAY THROUGH THE YEAR. AS OF THIS REPORT, WE'RE TRACKING ABOUT 26% OF THE BUDGET ESTIMATE IN THAT LINE ITEM.

THE COUNTY SALES TAX INCREASED 3%. AND THAT'S ALSO TRACKING ABOUT 26% OF OUR TOTAL ESTIMATE FOR 2026.

BOTH THE CITY AND COUNTY USE TAX INCREASED 2%.

WE ARE TRACKING ABOUT 3 TO 4% AHEAD OF WHERE WE PROJECTED TO BE AT THIS TIME DURING THE YEAR.

FOR THE SALES TAX AND USE TAX, YOU'LL SEE SOME UPDATED PROJECTIONS AT OUR BUDGET DISCUSSIONS IN A FEW WEEKS.

FOR FRANCHISE FEES THE ELECTRIC WE INCREASED 2%.

THAT IS TRACKING A LITTLE BIT BEHIND WHERE WE THOUGHT WE'D BE THIS YEAR AT THIS TIME, HOWEVER, YOU KNOW, WITH EVERYBODY TURNING ON THEIR AC UNITS OVER THE SUMMER, I ANTICIPATE THAT BUMPING UP A LITTLE BIT FOR THE REST OF THE YEAR.

GAS FRANCHISE FEES DECREASE 19%. I DID GET A QUESTION ON WHY WE LEFT THIS GREEN.

AND REALLY IT'S BECAUSE THIS DECREASE IS NOT ABNORMAL.

WE'VE SEEN THIS BEFORE. I LOOKED BACK OVER THE LAST COUPLE OF YEARS ON WHERE REVENUES WERE COMPARED TO BUDGET IN 2023.

WE EXCEEDED OUR BUDGET PROJECTIONS BY 67%. LET ME BACK UP A LITTLE BIT.

THIS IS HEAVILY WEATHER DEPENDENT. SO IF WE HAVE REALLY COLD, SNOWY JANUARY, FEBRUARY, MARCH, YOU'RE GOING TO SEE A REALLY BIG INCREASE HERE.

WE HAD A MILD JANUARY, FEBRUARY, MARCH THIS YEAR.

THAT'S WHY WE'RE SEEING THE DECREASE. BUT WHY WE'VE LEFT IT GREEN OR AT LEAST I'VE LEFT IT GREEN.

WE'VE SEEN REALLY LARGE INCREASES THE LAST COUPLE OF YEARS.

AND SO EVEN WITH THIS DECREASE THIS YEAR, IT'S HAPPENED BEFORE.

I ANTICIPATE WE'LL GET CLOSE TO, IF NOT EXCEED THE BUDGET FOR THIS YEAR.

I DID LOOK AT MAY'S NUMBERS, WHICH IS A COUPLE MONTHS AHEAD OF OR LATER THAN THIS REPORT, BUT WE'RE AT 80% OF OUR TOTAL PROJECTIONS FOR THE YEAR.

SO IS THAT JUST MORE BUILDINGS, MORE ENERGY? THAT'S THE OTHER THING TOO.

SO WE'RE WE'RE BUILDING. SO WE'RE GOING TO BE USING THOSE BUILDINGS WILL BE USING MORE GAS AND STUFF TOO.

BUT WEATHER SEEMS TO BE THE REAL INDICATOR OF HOW WE'RE GOING TO DO ON THAT REVENUE SOURCE.

I WILL SAY WITH THESE LARGE INCREASES THE LAST COUPLE OF YEARS, WE'VE ALSO NOT BUMPED THE BUDGET UP.

WE'VE INCREASED IT, BUT WE HAVEN'T INCREASED IT 60% OR 40%.

SO WE'RE, WE'RE DOING PRETTY WELL IN MY OPINION.

IF WE DO GET TOWARDS THE END OF THE YEAR, WE STILL SEE THIS DECREASE.

WE MAY TURN IT YELLOW, BUT I WOULD WANT TO WAIT A LITTLE BIT BEFORE WE MAKE THAT ADJUSTMENT.

BILL, DID YOU HAVE A QUESTION? SO NATE NOVEMBER AND DECEMBER COUNT IN THIS ALSO COMING UP 2026.

FOR THIS FALL AND WINTER. YES. OKAY. YEP. OKAY.

[00:40:06]

I KNOW I GOT A COUPLE QUESTIONS ON THAT. AND THEN STORMWATER SERVICE CHARGES INCREASED 2% AND PROJECTED TO MEET BUDGET ESTIMATE.

I THINK WE HAD A 1% INCREASE IN THE BUDGET FOR THIS YEAR.

AND THAT'S ALL DUE TO NEW GROWTH. WE'VE LEFT THAT $109 PER YEAR RATE ALONE FOR THE LAST 10 PLUS YEARS.

AGAIN, I WON'T GO THROUGH ALL THESE. THESE ARE THE DOLLAR VALUES OF THE CHANGES I JUST WENT THROUGH.

TOTAL INCREASE IS 1.2 MILLION. THE SALES TAX PORTION IS ONE THAT WE TALK ABOUT A LOT ESPECIALLY IN BUDGET SEASON.

CORRECT. TARIFFS WERE SORT OF THE NARRATIVE LAST YEAR.

IMAGINE WE CAN EXPECT CONTINUED INCONSISTENCY WITH CONFLICT IN THE MIDDLE EAST.

WHAT SORT OF ASSUMPTIONS CAN WE MAKE THIS YEAR? CORRECT. AS FAR AS WHAT WE'RE ANTICIPATING, YEAH.

WE TALKED A LOT ABOUT THE COMMUNICATIONS EQUIPMENT BEING EXEMPTED LAST YEAR, AND THAT'S WHY WE WERE DOWN FOR THE FIRST HALF ROUGHLY LAST YEAR.

THAT CONTINUES. WE'RE JUST MAKING IT UP IN OTHER AREAS RIGHT NOW.

SO I DO THINK WE'LL STILL SHOW STRONG REVENUES.

TARIFF MIGHT HAVE AN IMPACT. I THINK WE HAVEN'T SEEN ANYTHING FROM THE WORLD CUP REALLY AS FAR AS A BUMP.

BUT REALLY WE'RE AT A TWO MONTH LAG SO WE'RE NOT REALLY INTO THAT.

YOU KNOW WE'LL PROBABLY FIND OUT AUGUST, SEPTEMBER REALLY WHAT THE WORLD CUP DID FOR US.

BUT I WILL, I WILL TELL YOU NOW, I DID BUMP UP PROJECTIONS A LITTLE BIT FOR 26 IN ANTICIPATION OF SOME STRONG REVENUES FOR THIS YEAR.

GREAT. THANK YOU. EXPENDITURE INDICATORS GENERAL FUND INCREASED 11%.

OPERATING EXPENDITURES IN STORMWATER FUND INCREASED 16%.

THAT IS MAINLY DUE TO PERSONNEL COSTS. WE'RE MORE FULLY STAFFED THAN WE HAVE BEEN IN THE PAST.

THE OTHER WE HAD COMPENSATION ADJUSTMENTS AS WELL AS WELL AS, YOU KNOW, HEALTH, HEALTH CARE, ETC.. SO PERSONNEL IS REALLY THE DRIVER THERE.

WE'RE STILL WITHIN BUDGET IN BOTH THOSE FUNDS.

EVEN WITH THIS INCREASE OVER THE FIRST QUARTER OF LAST YEAR DEBT SERVICE FUND ACTUALLY WENT DOWN.

AND THE REASON FOR THAT IS WE HAVE NOT ISSUED OR WE DIDN'T ISSUE ANY DEBT IN 2025.

SO WE DIDN'T ADD TO OUR OUTSTANDING DEBT OUR DEBT SERVICE PAYMENTS, BUT WE'VE BEEN PAYING DOWN OUR CURRENT OUTSTANDING DEBT.

SO YOU CAN SEE WE PAID OFF A FEW OF THE BOND ISSUANCE OR SORRY BOND SERIES LAST YEAR, AND THAT REDUCED OUR EXPENDITURES FOR THIS YEAR.

I WAS ASKED ABOUT WORLD CUP EXPENDITURES. SO I DO WANT TO PUT THIS SLIDE IN HERE FOR THIS YEAR TO DATE, WE SPENT ABOUT A LITTLE BIT LESS THAN 1.5 5 MILLION.

ALL OF THAT FUNDING, AS WE'VE TALKED ABOUT IN THE PAST, HAS COME FROM THE TOURISM FUND, WHICH IS FUNDED BY TRANSIENT GUEST TAX.

SO THAT'S PEOPLE FROM OUTSIDE OF LENEXA COMING AND STAYING AT OUR HOTELS.

THAT FUNDING IS RESTRICTED FOR TOURISM PURPOSES.

WE CAN'T USE IT FOR ANYTHING ELSE. SO THIS IS AN IDEAL WAY TO SPEND THAT FUNDING.

I WILL HIGHLIGHT THE PUBLIC SAFETY EQUIPMENT THERE 1.2 MILLION WHICH MAKES UP A MAJORITY OF THE EXPENDITURES SO FAR.

WE DID PURCHASE THAT FOR WORLD CUP, BUT WE CAN USE THAT AND WE PLAN ON USING THAT ON LENEXA CITY EVENTS FOR MANY YEARS TO COME.

SO THIS IS A ONE TIME EXPENDITURE FOR WORLD CUP.

IT WILL BE IMPACTING US. WE'LL BE ABLE TO USE THAT EQUIPMENT FOR MANY YEARS TO COME.

JUST FOR THE GUESTS IN THE AUDIENCE. PREVIOUS USE FOR TRANSIENT GUEST TAX IN ABOUT THIS SIMILAR AMOUNT WAS THE GRANT WE ISSUED TO 3 AND 2 BASEBALL FOR THEM TO RESURFACE THEIR FIELD WITH ASTROTURF SYNTHETIC TURF TO ALLOW THEM TO HOST MORE BASEBALL TOURNAMENTS.

SO SIMILAR DEAL. YOU PROVIDE SOME MONEY TO ENCOURAGE VISITORS TO COME TO LENEXA.

SO THAT'S CONSISTENT WITH WHAT WE'RE SPENDING HERE. YEAH.

I ALSO MENTIONED TO JUST ALONG THOSE LINES, WE HAVE ECONOMIC DEVELOPMENT PAYMENTS FOR THE HOTEL ACROSS THE STREET AND STUFF THAT ARE COMING OUT OF THIS FUND AS WELL.

THANK YOU. YEAH. BILL, HOW MUCH HOW MUCH WERE THE SECURITY BARRIERS IN THAT 1.2? I BELIEVE THEY WERE MAJORITY OF IT. I BELIEVE THERE WERE ABOUT 650,000.

650,000. THANK YOU. YEP. AND THOSE WILL USE FOR PARADES AND BARBECUE AND EVERYTHING ELSE WE HAVE FROM HERE FOREVERMORE.

YEAH. THANK YOU. I'M LOOKING AT OUR RESERVE POLICY INDICATOR.

POLICY INDICATORS, GENERAL FUNDS AT 35%. SO RIGHT AT OUR MAX TARGET.

I WILL TELL YOU, HAVING GONE THROUGH THE RATING CALL PROCESS AGAIN THIS YEAR FOR THE BONDS THAT WE TALKED ABOUT EARLIER.

BY THE WAY, WE DID RECEIVE OUR TRIPLE A RATING AGAIN THIS YEAR DUE TO STRONG FINANCIAL MANAGEMENT.

THEY SPECIFICALLY CALLED OUT RESERVES, STRONG RESERVES AND A STRONG ECONOMY.

[00:45:04]

BUT IT IS PRETTY OPTIMIZED RIGHT NOW. AND CHESTER'S PRESENTATION EARLIER IN THE AUDIT, HE MENTIONED OUR UNASSIGNED FUND BALANCE, THE GENERAL FUND, WE ENDED LAST YEAR AT ABOUT 38%.

SO BY THE FIRST QUARTER WE'RE AT 35. DEBT SERVICE FUND.

WE HAD AN INCREASE IN DEBT SERVICE FUND RESERVE BALANCE.

THAT 116%. THE REASON FOR THAT IS WE'VE DEDICATED OUR SHARE OF THE COUNTY'S PUBLIC SAFETY THREE SALES TAX TO THE JUSTICE CENTER.

THAT PROJECT IS COMPLETE. WE'VE ISSUED THE DEBT FOR IT.

SO WE'VE BEEN MOVING THE SALES TAX THAT COMES IN FROM THAT COUNTY WIDE SALES TAX TO THE DEBT SERVICE FUND.

IT IS COMING IN FASTER THAN WE'RE PAYING DOWN DEBT.

HOWEVER, IT SUNSETS NEXT APRIL, RIGHT? SO WE WILL BE CONTINUING TO USE THOSE FUNDS TO PAY THAT DEBT SERVICE.

BUT RIGHT NOW IT IS BRINGING IN MORE REVENUE, INCREASING FUND BALANCE UNTIL IT SUNSETS IN APRIL OF NEXT YEAR.

STORMWATER FUND, REC CENTER FUND. WE DO HAVE SOME CAPITAL PROJECTS THAT WILL BE MAKING SOME TRANSFERS LATER THIS YEAR USING RESERVES THAT WERE IN THE BUDGET. SO THOSE WILL COME DOWN A LITTLE BIT.

WE ALSO HAVE DEBT SERVICE PAYMENTS IN THE STORMWATER FUND THAT WILL IMPACT US ON 9-1.

TOURISM FUND, WE TALKED ABOUT ALL THE EXPENDITURES.

WE'VE HAD WORLD CUP ECONOMIC DEVELOPMENT PAYMENT 3 AND 2 BASEBALL THAT FUND BALANCE, I THINK LAST YEAR WAS ABOUT 275%. IT'S ABOUT 100% RIGHT NOW. AND I WILL SAY ON THE REVENUE SIDE, WE GET THAT REVENUE ON A QUARTERLY BASIS, AND THE TOURISM F UND WE'VE RECEIVED, ONE QUARTER CAME IN AT $450,000, WHICH IS EXACTLY 25% OF OUR BUDGET FOR THIS YEAR.

AS I MENTIONED EARLIER, WE DID NOT ISSUE ANY DEBT IN 2025.

SO THESE RATIOS JUST CONTINUE TO GET BETTER. OBVIOUSLY, NOW WITH THE LARGER DEBT ISSUANCE HERE IN 2026, WE SHOULD SEE THESE COME UP A LITTLE BIT. BUT THE RATIO OF DEBT SERVICE TO TOTAL EXPENDITURES IS NOW BELOW 10%.

WE JUST WANT TO SEE 15% OR LESS. THE RATIO OF DEBT TO APPRAISED VALUATION IS 1%, WHICH IS VERY STRONG.

OUR INVESTMENT INDICATORS I THINK ALL BUT 2 SECURITIES ARE IN OUR SHORT TERM PORTFOLIO, WHICH IS BEATING THE BENCHMARK.

WITH THE LEGISLATIVE CHANGE LAST YEAR, WE ARE HAVING TO GO MORE WITH CDS, WHICH HAVE A SLIGHTLY LOWER RATE THAN SOME OF THE FED FEDERAL BACKED SECURITIES THAT WE WERE INVESTING IN.

BUT WE HAVE REALLY STRONG INVESTMENT INCOME FOR 25 AND 26.

WE EXPECT THAT TO CONTINUE, BUT MOST OF OUR PORTFOLIO NOW IS IN THAT SHORT TERM CATEGORY.

JUST AGAIN, UNREALIZED GAIN WAS 24,000. SO ASSUMING WE SOLD EVERYTHING ON 331, WHICH WE WOULDN'T DO, BUT WE TYPICALLY ALWAYS HOLD EVERYTHING TO MATURITY, WE WOULD HAVE MADE ABOUT $24,000 OFF OF $187 MILLION PORTFOLIO.

SOME ECONOMIC INDICATORS. AGAIN, WE DON'T REALLY CONTROL THESE INDICATORS, BUT THERE ARE GOOD KIND OF TESTS FOR THE LOCAL ECONOMY AND THE ENVIRONMENT WE'RE KIND OF OPERATING IN AS A CITY. WE ARE TRACKING BEHIND IN ALL OF THE BUILDING PERMIT CATEGORIES THERE.

AS FAR AS THIS REPORT OR YES, IT WOULD BE THE AGAINST THE 5 YEAR AVERAGE IN EACH OF THOSE CATEGORIES.

THE MAY REPORT JUST CAME OUT EARLIER THIS WEEK.

WE ARE CATCHING UP. SO THAT'S WHY THEY ARE GREEN.

I PROBABLY WOULDN'T CHANGE THEM TO A YELLOW UNTIL WE'VE HAD SEVERAL QUARTERS OR AT LEAST A FEW QUARTERS OF LAGGING BEHIND.

BUT LOOKING AT THE MAY REPORT, WE ARE CATCHING UP.

WE'RE ALMOST EXACTLY. IF YOU TAKE COMMERCIAL AND RESIDENTIAL, WE'RE VERY, I THINK WE'RE AT 199 MILLION COMPARED TO 200 MILLION LAST YEAR, SO PRETTY CLOSE. EVEN WITH THE PERMIT PERMITS DOWN A LITTLE BIT FROM LAST YEAR, OUR REVENUE FROM BUILDING PERMITS IS UP.

SO WE'RE AT 345,000 COMPARED TO 312,000 IN 2025.

THAT'S ALL I HAD FOR YOU THIS EVENING. I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. ANY OTHER QUESTIONS FOR NATE? OKAY.

THANK YOU. NATE. THANK YOU. GOOD. YEAH, I DID SEE WE HAVE 1 SCOUT WITH US.

[00:50:03]

WE HAVE A TRADITION HERE IN LENEXA. WE ASK YOU TO PLEASE STAND, STATE YOUR NAME, WHERE YOU GO TO SCHOOL AND WHAT BADGE YOU'RE WORKING ON THIS EVENING.

MY NAME IS THOMAS SOMETHING TO DO WITH THE COMMUNITY. THANK YOU VERY MUCH. AND IN THE BACK.

WELL, THANK YOU VERY MUCH. AND THANK YOU FOR BEING HERE THIS EVENING. THIS DOES END THE REPORT, THE RECORDED PORTION OF THE MEETING.

* This transcript was compiled from uncorrected Closed Captioning.