2. Consideration of a resolution levying a property tax rate exceeding the revenue neutral property tax rate of 25.359 mills for the fiscal year 2027 budget

[2. Consideration of a resolution levying a property tax rate exceeding the revenue neutral property tax rate of 25.359 mills for the fiscal year 2027 budget ]

OF 25.359 MILS FOR THE FISCAL YEAR 2027 BUDGET.

ITEM 2.A IS A PUBLIC HEARING TO CONSIDER EXCEEDING THE REVENUE NEUTRAL RATE.

ITEM 2.B IS A RESOLUTION LEVYING A PROPERTY TAX RATE EXCEEDING THE REVENUE NEUTRAL RATE OF 25.359 MILLS.

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

AS THE MAYOR MENTIONED, WE HAVE A PUBLIC HEARING REGARDING THE REVENUE NEUTRAL RATE AS WELL AS PUBLIC HEARING ON THE FISCAL YEAR 27 BUDGET.

I'M GOING TO DO JUST A QUICK AGAIN RECAP SIMILAR TO WHAT I DID ON AUGUST 18TH WITH A RECOMMENDED BUDGET.

AND THEN I'LL JUST BRIEFLY TALK ABOUT THE ACTION ITEMS BEFORE WE TAKE PUBLIC COMMENT.

AS ALWAYS, WE START WITH OUR BUDGET PRINCIPLES.

THESE HAVE BEEN IN PLACE FOR OVER TWO DECADES.

ANOTHER REASON THE CITY'S IN GOOD SOLID FINANCIAL POSITION TODAY.

AND AGAIN, THEY ARE THE FOUNDATION FOR WHICH WE BUILD OUR ANNUAL BUDGETS.

SO I WANTED TO HIGHLIGHT THOSE JUST BRIEFLY. HIGH LEVEL OVERVIEW.

OUR TOTAL ESTIMATED ASSESSED VALUATION FOR 2027 JUST OVER $2 BILLION.

IT'S A 3.3% INCREASE OF THAT 3.3% INCREASE A LITTLE LESS THAN ABOUT 61% IS DUE TO NEW GROWTH IN THE CITY. SO THAT'S NEW CONSTRUCTION. AND OF COURSE, WITH NEW GROWTH, THE INCREASING DEMANDS ON CITY SERVICES SUCH AS PUBLIC SAFETY INFRASTRUCTURE, STORMWATER SNOW REMOVAL, ETC.

WITHIN THAT NEW GROWTH. WE ALSO HAVE THREE PROPERTIES WITH EXPIRING IRBS IN 2027.

THE CITY'S PORTION OF THE REVENUE FROM THOSE THREE PROPERTIES ON AN ANNUAL BASIS WILL BE $335,000.

THOSE PROPERTIES WERE PAYING SOME PILOT PAYMENTS PER THE AGREEMENT.

SO THE INCREASE TO US FOR 2027 IS $144,000. WE ARE RECOMMENDING A QUARTER MILL ROLLBACK ON OUR MILL LEVY TO 25.984 MILLS. NO CHANGES TO MAJOR USER FEES SUCH AS A STORMWATER CAPITAL CHARGE.

AND THEN WE HAVE THE RECOMMENDATION OF ADDING 6 FTE, THREE OF WHICH ARE IN POLICE, ONE IN STORMWATER, ONE IN MUNICIPAL SERVICES AND ONE IN PARKS AND RECREATION.

AND THOSE POSITIONS ARE DETAILED IN OUR RECOMMENDED BUDGET DOCUMENT.

YOU'VE ALL SEEN THIS, THIS CHART BEFORE 2026 ADOPTED VERSUS OUR 2027 RECOMMENDED THE TOP HALF THERE ARE REALLY THE OPERATIONAL FUNDS FOR THE CITY. WE CAN USE THOSE FOR OPERATIONS AS WELL AS DEBT FINANCING CAPITAL PROJECTS.

THOSE FUNDS ARE INCREASING FOR 2027, ABOUT 4.4%.

MAIN DRIVER THERE AGAIN IS THE DEBT SERVICE FUND.

WE HAVE THE DEDICATED SALES TAX FOR THE JUSTICE CENTER.

PUBLIC SAFETY 3, OUR SHARE OF THE COUNTYWIDE SALES TAX.

THE BOTTOM HALF THERE ARE SPECIAL REVENUE FUNDS WHICH ARE RESTRICTED IN PURPOSE THEY'RE GOING UP APPROXIMATELY.

THE BUDGET'S GOING UP APPROXIMATELY 4%. AND THEN WE HAVE OUR ECONOMIC DEVELOPMENT FUNDS, WHICH ARE PASS THROUGH AND NOT OPERATIONAL FUNDS OF THE CITY.

YOU CAN SEE 12.9% FOR THE TIF FUNDS AND 6.3% FOR THE CID FUNDS.

AND TOTAL RECOMMENDED BUDGET IS $275.2 MILLION.

AND THE COMBINATION OF SPECIAL REVENUE, ECONOMIC DEVELOPMENT AND OPERATIONAL FUNDS SHOWS AN INCREASE OF 5.6% FOR 2027.

LOOKING AT THE REVENUE SIDE, REVENUES BY SOURCE.

NON-PROPERTY TAXES, WHICH ARE THE SECOND LINE THERE, HAVE OVERTAKEN PROPERTY TAXES AS THE LARGEST REVENUE SOURCE FOR THE CITY.

PRETTY EVEN SPLIT THERE, WHICH IS A REALLY GOOD, POSITIVE, GOOD MIX.

WE HAVE CHARGES FOR SERVICES COMING IN THERE AT ABOUT 8.7%.

TOTAL REVENUE $175.4 MILLION. EXPENDITURE PROJECTIONS BY FUNCTION. PUBLIC SAFETY, POLICE, FIRE AND MUNICIPAL COURT MAKE UP JUST UNDER A QUARTER OF OUR TOTAL BUDGET FOR A $3.3 MILLION, FOLLOWED BY ECONOMIC DEVELOPMENT AT 17% AND THEN COMMUNITY INFRASTRUCTURE.

TOTAL EXPENDITURE PROJECTIONS $178.9 MILLION.

AND THEN JUST SPECIFICALLY DRILLING DOWN INTO THE GENERAL FUND, OUR MAIN OPERATIONAL FUND FOR THE CITY.

THE OVERALL FUND IS GOING UP 3.2% FOR 2027. YOU CAN SEE SOME REDUCTIONS IN COMMODITIES AND CAPITAL OUTLAY ARE OFFSETTING SOME OF THE INCREASES WE'RE SEEING IN

[00:15:05]

CONTRACTUAL SERVICES AND PERSONNEL. IN THIS CHART YOU'VE SEEN SEVERAL TIMES. BUT AS OUR PROPERTY TAX RATE HISTORY BACK TO 2018 AND THEN DOWN TO OUR 2027 ESTIMATED TAX RATE OF 25.984 MILLS, THAT IS NINE CONSECUTIVE YEARS OF MILL LEVY REDUCTIONS.

AND JUST THE DOLLAR VALUE, THE IMPACT TO TAXPAYERS.

THE SAVINGS OF TAXPAYERS IS $11.4 MILLION ANNUALLY.

BECAUSE OF THOSE 9 MILL LEVY REDUCTIONS OVER SINCE 2018.

WE GET THIS QUESTION A LOT. SO I THREW THIS IN A CHART.

YOU SAW THIS ON THE 18TH WHERE WE FALL AS FAR AS OUR TAX RATE AS COMPARED TO OTHER JOHNSON COUNTY CITIES AND JOHNSON COUNTY ITSELF.

OF THE 20 JURISDICTIONS, OVERLAND PARK HAS THE LOWEST MILL LEVY.

WE FALL IN ABOUT NUMBER 7 WITH OUR PROPOSED MILL LEVY FOR 2027.

WE ARE THE ONLY MAJOR CITY IN JOHNSON COUNTY OR JURISDICTION IN JOHNSON COUNTY, LOWERING OUR PROPERTY TAX RATE FOR 2027.

I BELIEVE ALL JURISDICTIONS ARE EXCEEDING THE REVENUE NEUTRAL RATE.

SO WITH THE INCREASE IN ASSESSED VALUATION, THE REDUCTION IN THE PROPERTY TAX RATE, WHAT DOES THAT ACTUALLY DO TO OUR PROPERTY TAX REVENUE? OUR ESTIMATED PROPERTY TAX REVENUES ARE ANTICIPATED TO INCREASE 2.4% FOR 2027.

AND AGAIN, AS I SHARED ON THE 18TH CORE INFLATION PUT IT IN CONTEXT ABOUT 2.5% THROUGH JULY.

AND THEN IF YOU LOOKED AT THE NEW GROWTH THAT WE HAD EARLIER IN THE PRESENTATION ABOUT AFFECTED OUR BUDGET BY ABOUT 2%.

SO THOSE COMBINED INFLATION PLUS NEW GROWTH WOULD BE ABOUT 4.5% IMPACT TO OUR BUDGET.

WE'RE REQUESTING A 2.4% INCREASE TO PROPERTY TAX REVENUE.

EVERY OTHER YEAR, THE CITY DOES OR CONDUCTS A CITIZEN SURVEY ABOUT THE SERVICES THAT THE CITY PROVIDES.

WE SCORE VERY WELL, BUT I JUST WANTED TO HIGHLIGHT A COUPLE OF THE KEY METRICS.

SO 67% OF RESIDENTS ARE EITHER SATISFIED OR VERY SATISFIED WITH THE VALUE THEY RECEIVE FOR THEIR TAX DOLLAR.

YOU CAN SEE THAT EXCEEDS BOTH THE KC METRO AND IS MORE THAN DOUBLE THE NATIONAL AVERAGE.

91% OF RESIDENTS ARE SATISFIED OR VERY SATISFIED WITH THE QUALITY OF SERVICES PROVIDED BY THE CITY.

THAT'S COMPARED TO 76% HERE IN THE KC METRO AND AGAIN, MORE THAN DOUBLE THE NATIONAL AVERAGE.

AND JUST A REMINDER LAST APRIL, WE HAD THE 3/8 CENT SALES TAX RENEWAL AND 79% OF RESIDENTS VOTED TO RENEW THE CITY'S SALES TAX DEDICATED TO PARKS AND PAVEMENT. THE 2027 BUDGET PROCESS, FROM A STAFF PERSPECTIVE, REALLY STARTED BACK IN JANUARY AS WE GOT THE CALENDAR GOING AND WE STARTED MEETING WITH DEPARTMENTS AND CITY MANAGER'S OFFICE TO DEVELOP THE RECOMMENDED BUDGET.

IN JUNE BECCY AND I PRESENTED AN OVERVIEW OF THE RECOMMENDED BUDGET, AND WE ALSO POSTED A RECORDING OF THE BUDGET ON OUR CITY'S WEBSITE.

DEPARTMENTS PRESENTED THEIR INDIVIDUAL BUDGETS TO THE GOVERNING BODY AT THE COMMITTEE OF THE WHOLE ON JULY 14TH.

AND A COUPLE WEEKS AGO WE DID OR I DID JUST A QUICK UPDATE ON THE RECOMMENDED BUDGET.

WE ALSO ASKED FOR PUBLIC COMMENT AT THAT TIME.

WE HAD, I BELIEVE, TWO SPEAKERS DURING THE PUBLIC COMMENT PERIOD.

THERE WERE A COUPLE QUESTIONS RAISED THAT WERE ADDRESSED IN THE Q&A DOCUMENT THAT WAS ATTACHED TO THE AGENDA THIS EVENING.

AND THEN TONIGHT, WE HAVE THE TWO PUBLIC HEARINGS THAT I MENTIONED EARLIER.

SO THE FIRST PUBLIC HEARING, OBVIOUSLY, IS TO CONSIDER EXCEEDING THE REVENUE NEUTRAL PROPERTY TAX RATE.

AND THEN CONSIDERING THE RESOLUTION IMMEDIATELY FOLLOWING BY STATE LAW, BOTH HAVE TO TAKE PLACE THIS EVENING.

IF THE GOVERNING BODY SO DESIRES, WE COULD PUSH THE RESOLUTION AND PUBLIC HEARING, ADOPTING THE FISCAL YEAR 27 BUDGET TO A LATER DATE.

HOWEVER, BY OCTOBER 1ST WE HAVE TO CERTIFY OUR BUDGET TO JOHNSON COUNTY.

THAT'S ALL I HAVE FOR YOU THIS EVENING. IF THERE'S ANY QUESTIONS OR WE CAN TAKE PUBLIC COMMENT.

THANK YOU NATE, ANY DISCUSSION BEFORE WE OPEN THE PUBLIC HEARING? BILL. HEY, NATE. IN THE PACKET WE HAD 10, 12 PAGES OF QUESTIONS.

WERE THERE ANY SINCE THE 25TH? NO. NONE THAT I RECEIVED.

EVERYTHING THAT I'VE RECEIVED IS IN THE PACKET.

OKAY. THANK YOU. ANYTHING ELSE? OKAY. FOR TONIGHT'S PUBLIC HEARINGS WILL ALLOW EACH PERSON TO SPEAK FOR THREE

[00:20:08]

MINUTES. COMMENTS SHOULD BE DIRECTED TO THE GOVERNING BODY AND NOT TO STAFF FOR THE AUDIENCE.

WE'LL COLLECT ANY NEW QUESTIONS WHICH REQUIRE RESPONSE, A RESPONSE AND ANSWER THOSE AFTER THE PUBLIC HEARING IS CLOSED.

WE'LL NOW OPEN THE PUBLIC HEARING. ANYONE PRESENT WHO WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME FORWARD TO THE PODIUM.

PUBLIC HEARING ON REVENUE NEUTRAL.

GOOD EVENING. MY NAME IS SHARON I'VE LOOKED AT THE BUDGETS AND I'VE LOOKED AT PROPERTY TAXES, AND I'VE WATCHED THEM RAISE YEAR AFTER YEAR AFTER YEAR AND THE BUDGET RAISED YEAR AFTER YEAR AFTER YEAR. AND I HAVE A COUPLE OBSERVATIONS I'D LIKE TO SHARE WITH YOU.

LOOKING AT GROWTH TRENDS, WE HEARD A LOT ABOUT GROWTH ALREADY TONIGHT.

FROM 2017 TO 2026, 2026, POPULATION HAS GROWN 9.9%.

THAT'S LESS THAN 1% A YEAR. YET THE CITY STAFFING HAS GROWN ALMOST 13%.

WHEN I LOOK AT STAFFING, I LOOK AT THE NUMBER OF FULL TIME EQUIVALENTS FTES PER A MEASUREMENT, AND I CHOSE TO LOOK AT 10,000 POPULATION FOR EVERY 10,000 PEOPLE IN THE CITY.

AND WE HAVE 94 FTES PER 10,000. WHEN I LOOK AT OTHER CITIES IN JOHNSON COUNTY, I LOOKED UP A COUPLE.

OVERLAND PARK IS AT 60 FTES PER 10,000. OLATHE HAS 52, SHAWNEE HAS 38 AND LEAWOOD HAS 58. WE SEEM TO BE REALLY GENEROUSLY STAFFED AND THAT'S A HUGE DOLLAR AMOUNT.

SO WE LOOK AT PROPERTY TAXES AND YES, THE MILL RATE WENT DOWN AGAIN, WHICH IS NICE.

BUT PROPERTY VALUES CONTINUE TO GO UP. AND THAT'S WHY YOU GET MORE TAX.

FROM 2017 THE AVERAGE HOUSE WAS ABOUT $315,000 AND IN 27.

AND THESE ARE IN YOUR DOCUMENTS. IT'S ABOUT $519,000.

THAT'S ALMOST A 40% INCREASE. THE MILL RATE HAS GONE DOWN ABOUT 14.

SO IT'S NOT APPLES TO APPLES. MY FINAL COMPARISON IS TAX INCENTIVES.

JUST LOOKING AT 26 TO 27 TIFS HAVE GROWN FROM 13.75 TO 14.73.

THAT'S 6.65% INCREASE IN ONE YEAR, AND I BELIEVE THAT LENEXA IS LEADING THE PACK IN JOHNSON COUNTY FOR THE NUMBER OF TIFS.

MY BIG QUESTION IS, HOW MUCH MORE CAN THE AVERAGE CITIZEN SUBSIDIZE BUSINESSES AND DEVELOPMENT IN A CITY WITH A BUDGET THAT IS JUST GROWING OUT OF CONTROL? I REALLY ENCOURAGE YOU TO LOOK AT THAT. THANK YOU.

[APPLAUSE]. ANYONE ELSE ON REVENUE NEUTRAL? THANKS FOR THANKS FOR HAVING THIS MEETING AND HEARING US AND ALL THAT TOO.

YOUR NAME AND ADDRESS FOR THE RECORD, SIR, PLEASE. WHAT'S THAT? YOUR NAME AND ADDRESS FOR THE RECORD.

STREET, FAR WEST SIDE OF LENEXA AND I'VE ALSO, FOR WHATEVER IT'S WORTH, I'VE LIVED IN LENEXA SINCE 2000, SO, YOU KNOW, FOR QUITE, QUITE SOME TIME. AND IN GENERAL, I'M A PRETTY BIG FAN.

BUT ONE OF THE PROBLEMS IS INFLATION AND INCREASED BUDGETS.

I DON'T IT'S, IT'S LIKE THE, IT'S LIKE LENEXA PLAYS A MONEY GAME TO TRY TO MAKE IT SOUND LIKE TAXES AREN'T GOING UP, BUT THEY ARE. ONE OF THE THINGS THAT WE LOOKED AT THAT WE LOOKED AT WAS FROM 20 2020 TO 2027, THE TOTAL BUDGET FOR LENEXA HAS INCREASED BY $101 MILLION, WHICH IS A TOTAL INCREASE OF 37% OVER THE SAME THAT SAME 7-YEAR PERIOD. THAT HAPPENS TO BE AN AVERAGE INCREASE OF 2% PER YEAR. I DON'T KNOW IF YOU'RE AWARE OF THAT, BUT THAT'S THE CASE UNLESS THE NUMBERS ARE WRONG.

I'M ON A FIXED INCOME. I'M ON A FIXED INCOME AND FOR WHATEVER, FOR WHATEVER REASON.

THE AMOUNT OF MONEY THAT PEOPLE HAVE TO PAY THE CITIZENS DOESN'T SEEM TO BE A CONCERN FOR,

[00:25:02]

FOR LENEXA. THIS HEARING IS BEING HELD BECAUSE LENEXA IS PROPOSING A BUDGET ABOVE REVENUE NEUTRAL BY A WHOPPING $1.1 MILLION. LENEXA HAS THE POWER TO MEET THE CHALLENGES OF THE ECONOMY BY REDUCING EXPENSES. TWO POTENTIAL OPTIONS TO REACH BUDGET NEUTRALITY, I NOTICED, ARE.

1. REDUCING THE RESERVE FUND FROM ITS CURRENT 38% TO THE CITY'S TARGET OF 35%. THAT WOULD. THAT ALONE RESULTS IN A. IN FREEING UP $3.5 MILLION.

AND THEN AND LENEXA WILL STILL HAVE ITS TRIPLE-A RATING, WHICH I KNOW IS ONE OF THE GOALS.

LENEXA CLAIMS IT CAN'T ADJUST RESERVES TO MEET A REVENUE NEUTRAL BUDGET.

BUT WE HAVE IT. WE HAVE IT ON GOOD INFORMATION THAT IT IS.

THAT IS NOT TRUE. THAT IS SIMPLY NOT TRUE. SO I THINK THAT'S ONE OF THE THINGS THAT NEEDS TO BE LOOKED AT FORMALLY.

WHERE THAT INFORMATION COMES FROM. A REVENUE NEUTRAL BUDGET WOULD ALSO BE ANOTHER WAY.

THE $1.1 MILLION IN LOST REVENUE IS ONLY ABOUT A 0.6% REDUCTION IN EXPENDITURES IN EXPENDITURES. 0.6%. NOW TELL ME. WE CAN'T FIND THAT MONEY.

THANK YOU, MR. MURRAY. THANK YOU.

[APPLAUSE].

GALEN VAN HORNE, 8131 ROSE HILL ROAD, MAYOR COUNCIL.

THE CITY'S ORGANIZATIONAL CHART, WHICH IS ON PAGE SEVEN OF YOUR PROPOSED BUDGET, CLEARLY SHOWS.

AT THE VERY TOP ARE CITIZENS OF LENEXA. THIS APPEARS TO BE A TRADITIONAL TOP DOWN PYRAMID STRUCTURE, WITH EXECUTIVE LEADERSHIP AT THE TOP AND CASCADING LEVELS BELOW.

HOWEVER, IN REALITY, WE CITIZENS OF LENEXA SHOULD BE SHOWN AT THE BOTTOM OF THIS ORG CHART BECAUSE WE ARE TOLD WHAT IS BEING DONE.

AND WHEN WE DO SPEAK, SELDOM ARE WE HEARD. INDEED, YOU AND ALL THE CITY STAFF WORK FOR US.

WE DO NOT WORK FOR YOU. YOU TAKE OUR HARD EARNED DOLLARS, SPEND THEM, OR GIVE THEM DIRECTLY OR INDIRECTLY TO MANY DEVELOPERS AS TIFS IRBS CIDS SPD SBDS AND TAX ABATEMENTS. O. OCCASIONALLY THERE IS A PUBLIC HEARING.

BUT REALLY, DOES ANYONE LISTEN? MY TAX INCREASE IN LENEXA IS 8%.

I AM PAYING $0.51 PER SQUARE FOOT FOR MY LENEXA PROPERTY.

COUNTYWIDE MY PER SQUARE FOOT CHARGE IS $2.05.

HOW MUCH PER SQUARE FOOT ARE DEVELOPERS WHO HAVE TAX ABATEMENTS PAYING? I KNOW THAT IN THE COUNTY THERE ARE SOME THAT ARE PAYING $0.30 PER SQUARE FOOT.

THAT'S REALLY AN INJUSTICE. IS THE PER SQUARE FOOT TAX ABATEMENT FOR DEVELOPERS AVAILABLE ON THE WEBSITE? IF NOT, IT SHOULD BE. IT WOULD BE APPROPRIATE FOR EVERY CID DISTRICT TO POST A NOTICE OF INCREASED TAXES FOR THEIR BUSINESSES.

CIDS ARE TAXES TO ME TOO. THE CITY HAS A SPENDING PROBLEM, NOT A REVENUE PROBLEM.

PARAPHRASE FROM RONALD REAGAN SAID IN 1985. MANY OF YOU ARE NOT OLD ENOUGH TO KNOW THAT THERE IS NO MAGIC MONEY MACHINE IN MY BACKYARD OR BASEMENT.

EVERY DOLLAR YOU SPEND OR GIVE OUT TO DEVELOPERS AS PROPERTY TAX ABATEMENTS COMES FROM MANY OF US.

OUR RETIREMENT SAVINGS IS YOUR RESPONSIBILITY AS LEADERS OF THE CITY TO SPEND OUR HARD EARNED DOLLARS.

AND NOW, AS SENIORS ON LIMITED INCOMES WITH THE HIGHEST DEGREE OF INTEGRITY, SPEND IT JUDICIOUSLY AND WITH GREAT TRANSPARENCY.

BY THE WAY, THERE ARE CITIZENS NOT HERE TONIGHT BECAUSE THEY ARE ILL AND THEY WOULD HAVE LOVED TO SEEN THIS ON LIVE STREAM.

NOW, I KNOW THAT'S BEEN ONGOING AND SUPPOSEDLY THE PROCEDURES ARE DRAFTED, BUT IT CERTAINLY IS TAKING A LONG TIME TO GET THOSE INTO PLACE.

THERE'S. IT IS DIFFICULT, VERY DIFFICULT TO THANK YOU FOR THIS OPPORTUNITY TO SPEAK WHEN IT APPEARS THAT YOU FAIL TO TRULY UNDERSTAND THE BASIC NEEDS OF YOUR CITIZENS.

PLEASE VOTE NOT TO PASS ABOVE REVENUE NEUTRAL.

THANK YOU. [APPLAUSE]. ANYONE ELSE?

[00:30:05]

EVIE. GOOD EVENING. MY NAME IS EVIE CRAIG AND MY HUSBAND TOM AND I HAVE LIVED AT 2907 WHISPERING DRIVE SINCE JUNE OF 1999 WHEN WE RELOCATED TO LENEXA.

IT WAS A HUGE MOVE FOR 30 FAMILIES COMING FROM THE JOHN DEERE INTERNATIONAL HEADQUARTERS IN MOLINE.

VERY DIFFICULT. IN A SHORT PERIOD OF TIME, I HAD TO LEAVE A JOB.

WE HAD TO BUY A HOUSE. I HAD TO SELL A HOUSE, I HEARD.

I LOOKED AT THE ONLY THING THAT WAS HIGHER IN THE STRESS METER WAS DIVORCE OR DEATH OF A SPOUSE.

AND I REMEMBER LOOKING AT TOM AND SAYING, IT DOESN'T SOUND SO BAD.

SO IT WAS TRAUMATIC FROM THAT PERSPECTIVE. AND I WOULD JUST SAY THAT THE WAY THAT THE CITY HAS GROWN TO ME HAS BEEN A TESTAMENT TO NOT JUST THIS COUNCIL, BUT COUNCILS BEFORE YOU, NOT JUST THIS MAYOR, BUT MAYORS BEFORE YOU.

AND THAT WE HAVE SEEN A DELIBERATE, PLANFUL, PROGRESSIVE GROWTH THAT HAS BENEFITED MY FAMILY GREATLY, AND I APPRECIATE THE WORK. IN FACT, I CAME TO THE MEETING IN JULY.

WE WENT THROUGH THE DEPARTMENTAL BUDGETS. I'D FORGOTTEN WHAT IT WAS LIKE TO BE IN GRADUATE SCHOOL.

SO I APPRECIATE THAT. AND I DO FEEL THAT THERE IS MAYBE THERE'S NEVER ADEQUATE TIME FOR INPUT, BUT I HAVE BEEN, I'M SURE, LIKE MANY IN THIS ROOM AT PUBLIC HEARINGS THAT HAVE LASTED UNTIL 12 TIL MIDNIGHT TO 1:00 A.M.

TO 1:30, WHEN EVERYBODY'S POINT OF VIEW WAS TAKEN VERY SERIOUSLY.

SO I APPRECIATE THAT. I ENCOURAGE YOU TO SUPPORT THAT.

AND SINCE I HAVE A MINUTE 43 LEFT, I JUST WANT TO ALSO THANK YOU.

I KNOW I CAN'T, I'M ADDRESSING YOU AND NOT THE STAFF, BUT ALSO TO THANK MIKE.

I THOUGHT THAT THE WORK THAT YOU DID AROUND THE WORLD CUP WAS JUST ANOTHER TESTAMENT TO HOW WE ARE ABLE TO TAKE ADVANTAGE OF BOTH SMALL AND HUGE INITIATIVES.

WE HAD A GREAT TIME AT THE WATCH PARTY. [LAUGHTER] SO I'M GOING TO LOOK AT MIKE AND THANK YOU.

IT WAS GREAT. SO AGAIN, I ENCOURAGE YOU TO PASS THIS.

THERE'S NEVER GOING TO BE A PERFECT BUDGET, BUT THIS IS THE GROWTH THAT WE'VE HAD OVER THE YEARS.

THIS CONTINUES TO STAY ON THAT IN A VERY MINDFUL AND INTENTIONAL WAY.

AND I THANK YOU. THANKS, EVIE. ANYONE ELSE? PAM MOSHER ADDRESSES 24. 254187 WEST 88TH STREET.

I HAVE LIVED IN LENEXA ON AND OFF SINCE 1988.

I AM ASKING YOU TO NOT INCREASE OUR TAXES. MY PAYCHECK HAS.

MY PAYCHECK EARLIER THIS YEAR INCREASED BY 3%, AND THAT'S NOT GOING TO OBVIOUSLY KEEP UP WITH THE COST OF LIVING OR THIS PROPOSED TAX INCREASE WITH PROPERTY TAX. LIVING IN LENEXA JOHNSON COUNTY IS BECOMING UNAFFORDABLE FOR MY FAMILY.

MEMBERS OF THIS BOARD HAVE STATED THAT CREATING AFFORDABLE HOUSING WITHIN LENEXA IS A GOAL.

EARLIER THIS YEAR, THE BOARD PASSED LEGISLATION THAT WILL POSITIVELY IMPACT 50 FAMILIES VOTING TO NOT INCREASE TAX.

PROPERTY TAXES CAN HAVE A POSITIVE IMPACT ON EVERY HOUSEHOLD WITHIN THE COMMUNITY, AND NOT JUST THOSE 50 FAMILIES WITHIN THE CITY.

EACH OF YOU WERE VOTED INTO OFFICE BY US. THEREFORE, WE ARE ASKING YOU TO LISTEN TO US AND ADVOCATE FOR US.

BEFORE THE MEETING, I REACHED OUT TO SEVERAL LENEXA NEIGHBORS.

ALL REPLIED WITH A COMMON THEME. THE OVERWHELMING PERCEPTION IS THAT CITIZENS OF LENEXA, YOU DON'T CARE ABOUT THEM.

YOU HAVE YOUR OWN AGENDAS CHECKING BOXES FOR FUTURE POLITICAL ENDEAVORS.

PLEASE PROVE MY FRIENDS WRONG BY NOT INCREASING OUR TAXES NOW.

WE HAVE A SPENDING PROBLEM, NOT A REVENUE PROBLEM, WITHIN THE CITY.

THANK YOU. [APPLAUSE]. IF YOU'D LIKE TO SPEAK, PLEASE COME AND LINE UP AT THE MIC. I DON'T NEED TO CALL FOR EACH TIME, GUYS.

OKAY.

I WILL ENTERTAIN A MOTION TO ADOPT THE RESOLUTION LEVYING.

I'M SORRY. WAS THERE ANY OTHER DISCUSSION BEFORE WE TAKE THE VOTE? MARK.

WERE WE GOING TO ANSWER THE ONE QUESTION ABOUT WHEN MR. MURRAY GOT UP AND TALKED ABOUT THE REVENUE USING THE, THE RESERVES TO POTENTIALLY, HE SAID, THERE'S SOMETHING ABOUT THE FACT THAT WE CAN OR CANNOT DO IT.

AND HE MENTIONED THAT. SO ACCORDING TO OUR, THE CITY'S BUDGET PRINCIPLES, THE ONES THAT WE USE TO DEVELOP THE BUDGET RESERVES AND OUR RESERVE POLICY,

[00:35:05]

OUR RESERVES ARE CONSIDERED ONE TIME REVENUE.

SO THERE ARE ESSENTIALLY FOUR MONTHS OF EMERGENCY SAVINGS.

AND ASSUMING THAT SOMETHING CATASTROPHIC HAPPENS TO THE CITY, WE LOSE A TAXPAYER ECONOMIC DOWNTURN, MYRIAD OF THINGS WE DO NOT HAVE TO INCREASE TAXES OR MAKE RAPID ADJUSTMENTS.

WE HAVE FOUR MONTHS OF REVENUE THAT GIVES US TIME TO CONSTRUCT A PLAN.

COME BACK TO YOU AND HANDLE THOSE SITUATIONS.

BUT THEY ARE CONSIDERED ONE TIME REVENUE IF WE LOWER THE MILL LEVY.

IT'S AN ONGOING REDUCTION. SO LIKE I POINTED OUT, THE $11.4 MILLION THAT WE'VE REDUCED OVER THE LAST COUPLE OF YEARS, THAT'S ANNUAL. SO IF YOU TAKE ONE, EVEN $3 MILLION REDUCTION TO RESERVES AND THEN TRY TO OFFSET PROPERTY TAXES BY THE SAME AMOUNT YOU CAN'T DO THAT ON AN ONGOING BASIS.

THAT MAKES SENSE? SO REVENUES, ONGOING REDUCTION RESERVES ARE ONE TIME.

SO EVENTUALLY WE'RE GOING TO HAVE WE'D HAVE TO MAKE SOME CUTS. IT'S AN ONGOING EXPENDITURE.

SO THEN IF IT IF IT'S TRUE THAT WE'RE AT A 38% RESERVE HOW DO WE EVER GET THAT TO LIKE OUR GOALS OF THE 35 OR I THINK THE COUNTY'S AT 30, 30% RESERVE AND THEY STILL HAVE A TRIPLE-A RATING.

ARE WE ABLE TO. ARE WE SO IT VARIES BY CITY AND HOW MUCH DEBT WE HAVE OUTSTANDING.

IT'S NOT ACROSS THE BOARD UNIFORM ACROSS THE BOARD.

SHAWNEE DOESN'T EVEN HAVE A MAX TARGET. SO WE HAVE A 35% MAX TARGET THAT WE KIND OF SHOOT FOR.

BOTH MOODY'S AND STANDARD AND POOR'S HAVE INDICATED ON THEIR SCORECARDS WHEN WE GO OUT TO ISSUE DEBT, LIQUIDITY AND AVAILABLE CASH IS THE REASON WE'RE GETTING OUR TRIPLE-A BOND RATING.

AND AS WE POINTED OUT EARLIER THIS YEAR, WHEN WE HAD DEPARTMENTS PRESENT THEIR BUDGETS, ONE OF THE COST SAVINGS THAT WE SHOWED WAS THE ABILITY TO CASH FINANCE SEVERAL OF THE PROJECTS THAT ARE IN OUR CURRENT CIP.

IF WE WERE TO DEBT FINANCE THOSE, THOSE WOULD COST TAXPAYERS AN ADDITIONAL $15 MILLION OVER THE NEXT 10 TO 15 YEARS.

OKAY. DOES THAT MAKE SENSE? YES. THANK YOU. ANYTHING ELSE? OKAY. ENTERTAIN A MOTION TO ADOPT THE RESOLUTION LEVYING A PROPERTY TAX RATE EXCEEDING THE REVENUE NEUTRAL PROPERTY TAX RATE OF 25.359 MILLS.

SO MOVE COUNCIL MEMBER HANDLEY. AYE COUNCIL MEMBER CHARLTON. AYE. COUNCIL MEMBER NICKS.

YES. COUNCIL MEMBER BELL. AYE. COUNCIL MEMBER WILLIAMSON.

AYE. COUNCIL MEMBER DENNY IS ABSENT. COUNCIL MEMBER HERRON.

AYE. MAYOR SAYERS. YES. MOTION PASSES. ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING.

SO MOVED. SECOND. MOTION BY AVERY. SECOND BY CHELSEA.

ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? PUBLIC HEARING ON THIS ITEM IS CLOSED.

ITEM NUMBER 3 IS CONSIDERATION OF A RESOLUTION APPROVING THE FISCAL YEAR 2027 BUDGET.

[3. Consideration of a resolution approving the fiscal year 2027 budget ]

ITEM 3.A IS A PUBLIC HEARING TO CONSIDER THE FISCAL YEAR 2027 BUDGET.

ITEM 3.B IS A RESOLUTION APPROVING THE FISCAL YEAR 2027 BUDGET.

NATE, ANYTHING ELSE TO PRESENT? THANK YOU. AS WITH THE LAST PUBLIC HEARING, I'LL ALLOW EACH PERSON TO SPEAK FOR THREE MINUTES.

COMMENTS SHOULD BE DIRECTED TO THE GOVERNING BODY AND NOT THE STAFF OR THE AUDIENCE. I WILL OPEN THE PUBLIC HEARING.

ANYONE PRESENT WOULD LIKE TO SPEAK ON THE BUDGET DIRECTLY? PLEASE COME FORWARD TO THE PODIUM. SIGN IN AND STATE YOUR NAME AND ADDRESS FOR THE RECORD. ANYTHING ELSE? ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING.

SO MOVED. SECOND ALL THOSE IN FAVOR? AYE. THOSE OPPOSED? PUBLIC HEARING IS CLOSED.

ANY FURTHER DISCUSSION BEFORE WE TAKE VOTES ON THE BUDGET? I WANTED TO JUST. REVIEW THE STAFF PRESENTATIONS THAT OCCURRED IN THE COMMITTEE OF THE WHOLE MEETING, WHERE WE WENT THROUGH EACH DEPARTMENT'S LINE ITEM BUDGET.

THERE WAS A DISCUSSION THAT NIGHT ABOUT HOW WE WOULD FIND $1.1 MILLION TO ACHIEVE A REVENUE NEUTRAL RATE.

AND ALTHOUGH WE DIDN'T COME UP WITH ANYTHING SPECIFIC IN THE LAST TWO MONTHS TO DO SO THE FIRE DEPARTMENT BUILDING THEIR OWN BRUSH TRUCK LEGAL CHANGING OUR PROPERTY INSURANCE. PARKS AND REC GOING OUT AND FINDING SPONSORSHIPS FOR OUR MANY EVENTS THE TEAM GROWING OUR OWN PLANTS IN OUR GREENHOUSE

[00:40:08]

AND DOING OUR OWN MUNICIPAL LANDSCAPING AND MUNICIPAL SERVICES, DOING STORMWATER LINING, I THINK WAS SOMEWHERE IN THE TO THE TUNE OF HALF A MILLION DOLLARS IN SAVINGS. SO I SUPPORT THIS YEAR'S BUDGET.

I THINK THAT OUR STAFF WORKS HARD TO FIND INNOVATIVE WAYS TO SAVE THOSE BITS OF MONEY.

AND AS WE CONTINUE TO WORK TOWARDS THOSE YEAR OVER YEAR REDUCTIONS THAT WE SEE THAT DOES SAVE OUR TAXPAYERS $11 MILLION.

I WANT TO COMMEND YOU AND YOUR TEAM FOR BRINGING US A STRONG BUDGET, AND WE WILL GET TO WORK ON OUR CIP HERE IN THE FALL.

MARK, I CONCUR WITH WHAT YOU'RE SAYING, BUT I WE DON'T REALLY GET UP HERE AS ON THE DAIS TO EVER TALK REALLY ABOUT WHAT OUR GOALS ARE FROM THE GOVERNING BODY. AND I WOULD LIKE TO SEE IF THERE'S A ABILITY FOR THE 2020 BUDGETS THAT WE TRY AND ACHIEVE REVENUE NEUTRAL OR EVEN BEAT IT.

I JUST I WANT TO SAY THAT TODAY, JUST BECAUSE WE NEVER REALLY TALK ABOUT IT UP HERE.

AND SO THAT WOULD BE A GOAL OF MINE. I HOPE IT WOULD BE A GOAL OF EVERYBODY ELSE'S TO, TO CONSIDER OUR CITIZENS AND WHAT THEY HAVE TO SAY WHEN THEY COME UP HERE AND I'M AS WELL CONCERNED ABOUT PROPERTY TAXES AS ANOTHER $400 IS GOING TO GO OUT OF MY POCKET AND NEXT YEAR.

AND IT KEEPS INCREASING. AND SO I'M CONCERNED WITH THE.

OUR PROPERTY TAX INCREASES DOWN THE ROAD. SO I'D LIKE TO HAVE A GOAL OF TRYING TO ACHIEVE REVENUE NEUTRAL NET NEXT YEAR AND EVEN MAYBE BEATING IT. THANK YOU. THANK YOU MARK. ANYONE ELSE. JOHN MICHAEL.

I'LL JUST MAYBE FLAG. I THINK I BROUGHT THIS UP IN SOME OF OUR ONE ON ONE MEETINGS, BUT I'M REALLY PROUD OF OUR STAFF FOR PUTTING THE BUDGETS TOGETHER AS WELL AS THEY DO.

I THINK IT'S EASY FOR US TO TAKE SOME OF THE AWARDS THAT OUR STAFF HAVE GOTTEN FOR THEIR BUDGETING FOR GRANTED.

WE ARE USED TO THAT LEVEL OF EXCELLENCE IN LENEXA, AND THAT'S NOT SOMETHING THAT MANY MUNICIPALITIES IN OUR NECK OF THE WOODS GET TO ENJOY.

SO TO NATE AND YOUR TEAM AND TO BECCY AND YOUR TEAM, THANK YOU VERY MUCH FOR PUTTING THIS TOGETHER.

CHRIS. THANKS. I DO WANT TO SAY THANKS TO NATE FOR THE WORK AND OTHER STAFF.

I ASK A LOT OF TOUGH QUESTIONS, AND MY MAIN CONCERN WAS, DO WE HAVE ADEQUATE RISK MANAGEMENT POLICIES AND THE RIGHT KIND OF THINKING THAT WOULD ALLOW US TO TAKE THAT FOUR MONTHS OF REVENUE TO COVER EXPENSES AND ACTUALLY DELIBERATELY COME UP WITH A SOLUTION THAT DOES WORK FOR THE CITY AND I DO BELIEVE WOULD WORK FOR OUR CITIZENS AS WELL.

AND THE QUALITY OF ANALYSIS WAS GREAT. AND SO I SUPPORT THIS BUDGET.

THANK YOU. ANYTHING ELSE? EVERY YEAR, I'M ALWAYS IMPRESSED WITH NATE AND HIS TEAM FOR THE DETAIL THAT GOES IN TO OUR BUDGET AND THE TIME THAT YOU AND YOUR TEAM TAKE IN ANSWERING EVERY SINGLE CITIZEN QUESTION THAT COMES THROUGH, EITHER BY EMAIL OR THAT'S BROUGHT UP AT A PUBLIC HEARING, AND BY PROVIDING A VERY DETAILED ANSWER, AND THEN INCLUDING IT IN THE PACKETS ALLOWS EVERYONE TO READ THROUGH.

AND I KNOW AT TIMES THAT WHEN I READ THOSE, IT HAS HELPED ME MORE FULLY UNDERSTAND THE BUDGET PROCESS. AND I LEARNED SOMETHING NEW EACH YEAR.

AND A LOT OF THAT COMES FROM THE TIME THAT YOU TAKE IN DETAILING OUT YOUR ANSWERS TO EVERY SINGLE CITIZEN QUESTION.

AND I THINK THAT'S REALLY IMPORTANT TO MAKE NOTE OF.

AND IT'S NOT AN EASY PROCESS. IT IS TOUGH. AS A TAXPAYER, IT IS DIFFICULT, BUT I CERTAINLY UNDERSTAND. YOU KNOW, THE BUDGET PRINCIPLES OF OUR CITY, HOW IMPORTANT IT IS TO MAINTAIN WHAT WE'RE DOING AND WHAT HAS BEEN BROUGHT BEFORE US BY GOVERNING BODIES BEFORE US. SO I SUPPORT THIS BUDGET AND COMMEND YOU AGAIN.

THANK YOU. THANK YOU CHELSEA. AVERY. NO, NO DIRECT COMMENTS EXCEPT CERTAINLY AGAIN, IN FAVOR OF THE BUDGET AND APPRECIATE STAFF'S WORK ON IT. I THINK IT LOOKS REALLY GREAT.

SO LOOK FORWARD TO DOING IT AGAIN NEXT YEAR. OKAY.

MR. NICKS, ANYTHING TO BRING US HOME? I'M WITH AVERY.

[00:45:03]

[LAUGHTER] AND WITH THAT, I WILL ENTERTAIN A MOTION TO ADOPT THE RESOLUTION APPROVING THE FISCAL YEAR 2026 2027 BUDGET.

SO MOVE THIS ONE WOULD START WITH COUNCIL MEMBER EITERICH AND SHE IS ABSENT.

COUNCIL MEMBER CHARLTON. YES. COUNCIL MEMBER NICKS.

YES. COUNCIL MEMBER BELL. YES. COUNCIL MEMBER WILLIAMSON.

AYE. COUNCIL MEMBER DENNY IS ABSENT. COUNCIL MEMBER HERRON.

AYE. COUNCIL MEMBER HANDLEY. AYE. AND MAYOR SAYERS.

YES. AND THE MOTION PASSES. CONGRATULATIONS, EVERYONE.

WE HAVE NO NEW BUSINESS TONIGHT. ANY COUNCIL MEMBER REPORTS?

[COUNCILMEMBER REPORTS]

I GOT YOU WERE UP HERE TALKING ABOUT IT, BUT I WAS ONE OF THE MEMBERS FROM THE CHAMBER OF COMMERCE THAT WENT OUT TO THE QUAD CITIES, TO MOLINE TO SEE JOHN DEERE [LAUGHTER] AND TRY TO CONVINCE YOU TO COME HERE.

AND YOU GUYS HAVE GOT THE GREATEST JOHN DEERE MUSEUM IN CAPTIVITY.

IT'S JUST WONDERFUL. AND YOU BROUGHT BACK GOOD MEMORIES TONIGHT AT THE AT THE PODIUM.

THANK YOU.

AND MANY OF US ARE STILL HERE. AND I'LL JUST SAY, WHEN WE CAME HERE, THERE WERE NOT A LOT OF PEOPLE WHO WOULD COME TO LENEXA.

NOW, I CAN'T KEEP MY FRIENDS FROM KCMO NEXT YEAR.

[LAUGHTER] SO YOU COME HERE, I DON'T HAVE TO TELL YOU TO YOU.

SO THANK YOU. YES, THERE WAS A SALES JOB DONE AND IT WAS GREAT.

WE'RE VERY HAPPY. THANK YOU PER OUR PROCLAMATION TONIGHT, MAKING SURE THAT YOU HAVE ON YOUR CALENDAR THE WALK ACROSS AMERICA ON THE 23RD.

WE WILL SEE YOU OUT THERE AROUND MIDDAY. HOPEFULLY THE WEATHER WILL COOL DOWN JUST A LITTLE BIT FOR US SO THAT IT'S NOT A SWAMPY MESS.

BECCY, ANY STAFF REPORTS? WE WILL NOT HAVE A COMMITTEE OF THE WHOLE MEETING NEXT TUESDAY, SO ENJOY YOUR EVENING OFF.

[STAFF REPORTS ]

THANK YOU VERY MUCH. THIS DOES END THE RECORDED PORTION OF THE MEETING.

WE WILL TAKE BUSINESS FROM THE FLOOR.

* This transcript was compiled from uncorrected Closed Captioning.

Sep 01, 2026 City Council Meeting

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