[00:00:01] CALL THE MEETING TO ORDER. PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE. [CALL TO ORDER ] JENNIFER, WOULD YOU PLEASE CALL ROLL? THANK YOU MAYOR. COUNCIL MEMBER HANDLEY. PRESENT. COUNCIL MEMBER EITERICH. PRESENT. COUNCIL MEMBER CHARLTON. HERE. COUNCIL MEMBER NICKS. HERE. COUNCIL MEMBER BELL. HERE. COUNCIL MEMBER WILLIAMSON. PRESENT. COUNCIL MEMBER DENNY. COUNCIL MEMBER HERRON. MAYOR SAYERS IS PRESENT AND PRESIDING. THANK YOU. DO WE HAVE ANY CORRECTIONS TO THE DRAFT MINUTES OF THE AUGUST 4TH CITY COUNCIL MEETING? [APPROVE MINUTES] HEARING NONE, I'LL ENTERTAIN A MOTION TO APPROVE THE MINUTES. MOTION BY CRAIG, SECOND BY CHELSEA. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? MINUTES ARE APPROVED. JENNIFER, ANY MODIFICATIONS TO THE AGENDA? [MODIFICATION OF AGENDA ] NONE THIS EVENING. THANK YOU. FIRST, WE HAVE THE CONSENT AGENDA. [CONSENT AGENDA ] THERE ARE 11 ITEMS ON TONIGHT'S CONSENT AGENDA. MATTERS LISTED IN THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE AND WILL BE APPROVED COLLECTIVELY, WITH NO SEPARATE DISCUSSION. IF ANY ITEM ON THE CONSENT AGENDA MAY BE REMOVED FOR SEPARATE DISCUSSION BY A MEMBER OF THE GOVERNING BODY, CITY MANAGER OR MEMBER OF THE PUBLIC, IN THE EVENT AN ITEM IS REMOVED FROM THE CONSENT AGENDA, IT WILL BE PLACED ON THE REGULAR AGENDA. ANYONE WISH TO REMOVE AN ITEM FOR DISCUSSION? SEEING NONE, I'LL ENTERTAIN A MOTION TO APPROVE ITEMS ONE THROUGH 11 ON THE CONSENT AGENDA. SO MOVED. MOTION BY AVERY. SECOND BY BILL. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED. CONSENT AGENDA IS APPROVED. ITEM NUMBER 12 IS A PUBLIC HEARING TO CONSIDER REPAIRS OR DEMOLITION OF FIRE DAMAGED STRUCTURE AT 2826 WEST 89TH TERRACE. THIS HAS BEEN CANCELED AT THE REQUEST OF STAFF. ITEM NUMBER 13 IS A CONSIDERATION OF RIGHT OF WAY VACATION LOCATED ON THE SOUTHWEST CORNER OF 85TH TERRACE AND MONROVIA STREET. [13. Consideration of a right-of-way vacation located on the southwest corner of 85th Terrace & Monrovia Street] ITEM 13.A IS A PUBLIC HEARING TO CONSIDER THE REQUEST TO VACATE THE RIGHT OF WAY. 13.B IS AN ORDINANCE VACATING THE RIGHT OF WAY. STEPHANIE. GOOD EVENING, MAYOR AND COUNCIL. I AM STEPHANIE SULLIVAN AND I AM PRESENTING ITEM NUMBER 13, WHICH, AS MENTIONED, IS A RIGHT OF WAY VACATION REQUEST. AND THE SUBJECT PARCEL IS NEAR THE SOUTHWEST CORNER OF 85TH TERRACE AND MONROVIA STREET. A PUBLIC HEARING IS REQUIRED FOR THIS ITEM. AS YOU SAW IN THE MEMO IN YOUR PACKET, YOU WOULD HAVE SEEN A LARGER VERSION OF THIS PARTICULAR MAP. THE SUBJECT SITE IS OUTLINED IN RED, AS YOU CAN SEE ON THE SCREEN HERE. AND IT IS A TRIANGULAR SHAPED PARCEL THAT'S ABOUT 4300FT² NEAR THE CORNER OF 85TH AND MONROVIA STREET. THIS IS JUST NORTH OF 87TH STREET PARKWAY, AND THIS IS ROUGHLY ON THE NORTHEAST CORNER OF WHAT IS THE FORMER CITY HALL SITE, IF YOU'RE FAMILIAR WITH THAT SITE AT ALL. IT IS CURRENTLY PART OF THE RIGHT OF WAY, AND WITH THIS VACATION, IT WOULD BECOME PART OF WHAT WILL BE THE FUTURE FIRE STATION SIX SITE THAT WAS ON YOUR CONSENT AGENDA THIS EVENING, AND WE WILL ALSO BE RETAINING ANY NECESSARY EASEMENTS FOR UTILITIES. WE DO HAVE, I BELIEVE, KANSAS GAS WITHIN THAT PARCEL CURRENTLY AND SOME MUNICIPAL INFRASTRUCTURE WITHIN THE SITE AS WELL. SO NONE OF THAT WILL BE AFFECTED WITH THIS VACATION. THERE ARE STANDARDS FOR REVIEW FOR VACATIONS OF RIGHT OF WAY. ALL FOUR STANDARDS HAVE BEEN MET AND DISCUSSED IN YOUR PACKET. AND STAFF RECOMMENDS CONDUCTING THE REQUIRED PUBLIC HEARING AND RECOMMENDS APPROVAL OF THIS VACATION. THAT CONCLUDES MY PRESENTATION. THANK YOU. ANY DISCUSSION BEFORE WE OPEN THE PUBLIC HEARING? SEEING NONE, I WILL NOW OPEN THE PUBLIC HEARING. IF ANYONE PRESENT WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME FORWARD TO THE PODIUM SIGN IN STATE YOUR NAME AND ADDRESS FOR THE RECORD. SEEING NONE, I WILL ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING. MOTION BY AVERY, SECOND BY COURTNEY. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? PUBLIC HEARING IS CLOSED. ANY FURTHER DISCUSSION ABOUT VACATING THE RIGHT OF WAY? OKAY. I'LL ENTERTAIN A MOTION TO PASS THE. OR, I'M SORRY. THAT'S THE FIRST ONE. ENTERTAIN A MOTION TO PASS THE ORDINANCE VACATING THE RIGHT OF WAY. SECOND. MOTION BY CRAIG, SECOND BY AVERY. ALL THOSE IN FAVOR? AYE. THOSE OPPOSED. MOTION PASSES. ITEM NUMBER 14 IS AN UPDATE ON THE FISCAL YEAR 2027 RECOMMENDED BUDGET. [14. Fiscal Year 2027 Recommended Budget] HELLO, NATE. THERE YOU GO. NATE. THANK YOU. GOOD EVENING, MAYOR AND COUNCIL NATE BLUM WITH THE FINANCE DEPARTMENT. AS THE MAYOR SAID, WE'RE GOING TO UPDATE YOU ALL ON WHERE WE ARE WITH THE RECOMMENDED 2027 BUDGET. [00:05:02] I JUST HAVE A COUPLE SLIDES TO GO THROUGH. THIS IS KIND OF A HIGH LEVEL RECAP SINCE IT'S BEEN A FEW WEEKS SINCE WE DISCUSSED THE BUDGET. TALK ABOUT NEXT STEPS AND THEN TAKE ANY PUBLIC COMMENT. AS ALWAYS, I WANTED TO BRING UP OUR BUDGET PRINCIPLES THAT ARE THE FOUNDATION FOR OUR RECOMMENDED 2027 BUDGET. I'M NOT GOING TO GO THROUGH THOSE TONIGHT. YOU'VE SEEN THEM SEVERAL TIMES ALREADY THIS YEAR, BUT I DO WANT TO MAKE A POINT THAT THEY ARE THE FOUNDATION FOR THE 27 BUDGET AND ANY RECOMMENDED OPERATING OR CAPITAL PLAN WE BRING BEFORE YOU. THIS SLIDE GIVES AN OVERVIEW OF THE 2027 RECOMMENDED BUDGET AS COMPARED TO THE 2026 ADOPTED BUDGET. YOU CAN SEE ON THE LEFT HAND SIDE THERE ARE THE FUNDS BY TYPE. SO THE TOP HALF ARE THE OPERATIONAL FUNDS. YOU CAN SEE THE NEXT FEW COLUMNS ARE THE 2026 ADOPTED BUDGET AND THE 2027 RECOMMENDED. OVERALL FOR THE OPERATIONAL FUNDS THE 27 BUDGETS, INCREASING 4.4%. THE BIGGEST DRIVER THERE IS, OBVIOUSLY YOU CAN SEE THE DEBT SERVICE FUND. JUST A REMINDER, WE ARE MOVING THE PUBLIC SAFETY THREE SALES TAX INTO THE DEBT SERVICE FUND TO FUND THE DEBT PAYMENTS ON THE JUSTICE CENTER. AND THEN THAT REVENUE CONCLUDES THE FIRST END OF THE FIRST QUARTER OF 2027. ON THE BOTTOM SECTION THERE, WE HAVE OUR SPECIAL REVENUE FUNDS, WHICH ARE RESTRICTED FOR SPECIFIC PURPOSES. AND THEN OUR ECONOMIC DEVELOPMENT FUNDS, WHICH ARE PASS THROUGH AND NOT REVENUE TO THE CITY. SO WE CAN'T USE THOSE FOR OPERATIONS. THOSE TYPES OF FUNDS ARE INCREASING 9.7% IN TOTAL. AND THEN LOOK AT THE OVERALL BUDGET. WE'RE PROPOSING A $275.2 MILLION BUDGET, AN OVERALL INCREASE OF 5.6%. JUST A COUPLE BUDGET HIGHLIGHTS I WANTED TO POINT OUT. REMEMBER FROM OUR OVERVIEW DISCUSSIONS, 3.3% INCREASE IN OVERALL ASSESSED VALUATION OF THAT INCREASE. ALMOST TWO THIRDS OF THAT IS DUE TO NEW GROWTH WITHIN THE CITY. SO THAT'S NEW DEVELOPMENT THAT THE CITY MUST FUND INFRASTRUCTURE AND SERVICES FOR. ALSO I WANTED TO HIGHLIGHT TOO THAT THE CITY WILL BE RECEIVING APPROXIMATELY $335,000 IN 2027 DUE TO EXPIRING IRBS THAT ARE COMING BACK ONLINE. THERE'S THREE PROPERTIES THAT MAKE UP THAT TOTAL. WE WERE RECEIVING PILOT PAYMENTS PRIOR TO THAT DURING THE IRB PHASE. SO THIS IS AN ADDITIONAL ADDITION TO OUR REVENUE OF 144,000 FOR 2027. AYE RECOMMENDED MILL LEVY. WE'RE RECOMMENDING A QUARTER MILL REDUCTION. I BELIEVE WE'RE THE ONLY MAJOR CITY AND MAYBE ONE OF THE ONLY CITIES IN JOHNSON COUNTY ACTUALLY PROPOSING A MILL LEVY REDUCTION FOR 2027. OUR ESTIMATED MILL LEVY WOULD BE 25.984 MILLS. WE'RE RECOMMENDING NO CHANGES TO MAJOR USER FEES. STORMWATER SERVICE OR CAPITAL CHARGE WOULD BE AN EXAMPLE THERE. AND THEN WE ARE RECOMMENDING THE ADDITION OF THREE, SORRY, SIX FTES, THREE OF WHICH ARE IN PUBLIC SAFETY AND POLICE. WE HAVE ONE IN MUNICIPAL SERVICES, ONE IN STORMWATER AND THEN ONE IN PARKS AND RECREATION. THIS CHART HIGHLIGHTS OUR PROPERTY TAX RATE DATING BACK TO 2018. YOU CAN SEE WE'RE AT A HIGH OF 31.832 MILLS. AND WE'VE REDUCED THE MILL LEVY TO AN ANTICIPATED 25.984. EXCUSE ME. 25.984 MILLS FOR THE 2027 BUDGET. AND AGAIN, THE DOLLAR VALUE OF THOSE MILL LEVY REDUCTIONS OVER THE LAST SEVERAL YEARS. TOTAL MILL LEVY REDUCTION 5.848 MILLS. I WILL NOTE THAT'S THE FASTEST REDUCTION IN OF ANY OF THE JOHNSON COUNTY CITIES OVER THAT TIME TIME FRAME. THE DOLLAR VALUE OF THAT IS $11.4 MILLION ANNUALLY. AND THEN A REVENUE NEUTRAL RATE. WE HAVE AN ASSESSED VALUE OF JUST OVER 2 BILLION. SO IF YOU JUMP DOWN THERE TO THE BOTTOM, THE DOLLAR VALUE OF THE REDUCTIONS TO GET TO THE REVENUE NEUTRAL RATE FROM OUR CURRENT PROPERTY TAX RATE IN 26 WOULD BE 1.71 MILLION, AND IT WOULD BE AN ADDITIONAL 1.2 MILLION OVER AND ABOVE THE PROPOSED MILL LEVY DECREASE. I GET THIS QUESTION EVERY YEAR. WHERE DOES OUR TAX RATE FALL FOR IN THE JOHNSON COUNTY CITIES AS WELL AS THE COUNTY? YOU CAN SEE THE CHART THERE. THIS DOES INCLUDE THE APPLICABLE FIRE DISTRICTS. [00:10:01] SO LIKE PRAIRIE VILLAGE, THEY DON'T HAVE THEIR OWN FIRE DEPARTMENT. THEY USE A CONSOLIDATED DISTRICT. SO WE ADDED IN THE MILL LEVY THERE TO MAKE IT A COMPARISON APPLES TO APPLES. AS I MENTIONED, LENEXA IS THE ONLY MAJOR JURISDICTION IN JOHNSON COUNTY LOWERING ITS MILL LEVY FOR 2027. I BELIEVE ALL JURISDICTIONS ARE EXCEEDING THE REVENUE NEUTRAL RATE. SO WHAT DOES THAT MEAN FOR THE ACTUAL PROPERTY TAX REVENUE GENERATED BY THE CITY? OUR ESTIMATED PROPERTY TAX REVENUES ARE ANTICIPATED TO INCREASE 2.4%. AND TO GIVE THAT SOME CONTEXT, THE CORE INFLATION THROUGH JULY WAS 2.5%. SO NOT EVEN INFLATION. AND THEN OVER AND ABOVE WE HAVE THE NEW GROWTH WITHIN THE CITY AS WELL. IT'S NOT TAKEN INTO ACCOUNT HERE. AND THIS IS JUST A GENERAL FUND BREAKOUT. GENERAL FUNDS ARE MAJOR OPERATING OPERATING FUND FOR THE CITY. SO LOOKING JUST AT THAT FUND, YOU CAN SEE SOME DECREASES IN COMMODITIES AND CAPITAL OUTLAY OFFSETTING SOME INCREASES IN CONTRACTUAL SERVICES AND PERSONNEL. OVERALL, THE FUND IS ANTICIPATED TO INCREASE 3.2% FOR 2027. AND THEN LASTLY, JUST NEXT STEPS. WE PLAN ON TAKING PUBLIC COMMENT THIS EVENING AND THEN THE PUBLIC HEARINGS FOR BOTH THE REVENUE NEUTRAL RATE AND THE 2027 BUDGET ARE ANTICIPATED TO TAKE PLACE ON SEPTEMBER 1ST. WITH THAT QUICK OVERVIEW, I'M HAPPY TO STAND FOR ANY QUESTIONS PRIOR TO TAKING PUBLIC COMMENT. ANYTHING FOR NATE? OKAY. WE WILL ALLOW PUBLIC COMMENT ON THE BUDGET THIS EVENING. AS USUAL, WE WILL ALLOW THREE MINUTES PER PERSON. PLEASE COME DOWN TO THE PODIUM. STATE YOUR NAME AND ADDRESS FOR THE RECORD. HELLO, MY NAME IS SHARON. I LIVE AT 8844 HOUSTON AND THANK YOU FOR ALLOWING ME COMMENT. I JUST HAVE SOME QUESTIONS THAT, AS I LOOK AT THE BUDGET, RAISE A LITTLE BIT OF RED FLAGS. I DID A LOT OF BUDGETING IN MY CAREER FOR A MULTI-MILLION DOLLAR COMPANY. AND SOME OF MY QUESTIONS RELATE TO WHY WE'RE NOT REVENUE NEUTRAL. AND SO HOW MUCH COULD LENEXA REDUCE PROPERTY TAX RATE WHILE STILL MAINTAINING ITS RESERVE POLICY, TRIPLE A CREDIT RATING AND PLAN SERVICES? WHAT WOULD THE GENERAL FUNDS RESERVES LOOK LIKE IF COUNCIL ADOPTED THE REVENUE NEUTRAL RATE? HOW MUCH ADDITIONAL PROPERTY TAX REVENUE DOES EXCEEDING THE REVENUE NEUTRAL RATE GENERATE IN 2027? AND WHAT SPECIFICALLY REQUIRES THAT ADDITIONAL MONEY? AND FINALLY, IF 35% IS THE GENERAL RESERVE FUND TARGET, WHAT SPECIFICALLY JUSTIFIES MAINTAINING RESERVES AS HIGH AS 38%? AND THEN I JUST HAVE JUST A GENERAL COMMENT. I KNOW THE CITY COUNCIL AND THE MAYOR TALK A LOT ABOUT BEING TRANSPARENT AND WELCOMING CITIZEN COMMENT. YET TONIGHT WE HAD 11 ITEMS ON THE CONSENT AGENDA THAT WERE NOT DISCUSSED AND DID NOT ALLOW PUBLIC COMMENT, AND I THINK THAT'S QUITE A FEW. I WOULD ENCOURAGE US TO TO LOOK CAREFULLY AT THAT AND NOT SHUT OUT THE PUBLIC ON SOME OF THAT. THANK YOU. CHAIR. ANY OTHER COMMENTS? MAYOR AND COUNCIL. GAYLENE VAN HORN 8131 ROSE HILL ROAD. THIS EVENING YOU APPROVED EXPENDITURES OF APPROXIMATELY 8.6 MILLION WITHOUT ANY DISCUSSION. ALONG WITH PRESENTING A PROPOSED BUDGET OF 275.2 MILLION, LENEXA DOES NOT HAVE A REVENUE PROBLEM, BUT WE CERTAINLY HAVE A SPENDING PROBLEM. EXPENSES MUST BE REDUCED. MANY OF US ARE STRUGGLING TO STAY IN OUR HOMES, EVEN IF WE'VE BEEN HERE 28 YEARS. AND WHERE DO WE GO? THE APPROVAL OF THE 8.6 MILLION IN THIS HUGE BUDGET, WELL, IT WILL BE APPROVED. HOWEVER, THERE WAS A REQUEST IN FEBRUARY FOR LIVE STREAMING OF MEETINGS TO HELP LENEXA CITIZENS WHO CANNOT BE HERE TONIGHT BECAUSE THEY HAVE CHILDREN THAT NEED TO BE PUT TO BED TO KNOW HOW THEIR PROPERTY TAX DOLLARS ARE BEING SPENT AND EQUIPMENT IS AVAILABLE, AND THERE IS NO ADDITIONAL COST FOR IMPLEMENTATION AND [00:15:07] ABSOLUTELY NO BUDGET IMPACT. HERE IT IS AUGUST. AND THE RESPONSE FOR NOT LIVE STREAMING MEETINGS IS THE GOVERNING BODY RULES OF PROCEDURES WILL NEED TO BE UPDATED TO REFLECT THIS CHANGE IN PRACTICE BEFORE IT CAN BE IMPLEMENTED. WE EXPECT TO COMPLETE THIS IN THE NEXT COUPLE OF MONTHS. SERIOUSLY, NINE MONTHS TO DO LIVE STREAMING TO THE CITIZENS WHO WANT TO KNOW WHAT'S HAPPENING IN THIS CITY. IS THIS HOW YOU SHOW RESPECT AND CONCERN TO AND FOR CITIZENS OF LENEXA? WHEN WILL YOU REALLY LISTEN TO THE HARD WORKING, TAXPAYING CITIZENS OF THIS CITY? THANK YOU. ANY OTHER COMMENTS? OKAY. WE HAVE NO NEW BUSINESS TONIGHT. ANY COUNCIL MEMBER REPORTS? OKAY. BECKY. ANYTHING FROM STAFF? NO, MA'AM. OKAY. THIS ENDS THE RECORDED PORTION OF THE OF THE MEETING. * This transcript was compiled from uncorrected Closed Captioning.