[0:27] [snorts]

[0:32] » Recording in progress.

[1:03] » Good evening, ladies and gentlemen, and

[1:05] welcome to this regular session meeting

[1:07] of the Leawood governing body. It's

[1:10] August the 10th, 2026.

[1:13] I will call the meeting to order

[1:15] and ask that we all rise for the pledge

[1:18] of allegiance, please. Please follow me.

[1:23] I pledge allegiance to the flag of the

[1:25] United States of America and to the

[1:27] republic for which it stands, one nation

[1:30] under God, indivisible, with liberty and

[1:33] justice for all.

[1:35] Thank you. Please be seated.

[1:37] >> [clears throat and cough]

[1:39] » And with that, I would ask the clerk to

[1:41] call the roll, please.

[1:43] >> Councilmember Pepas.

[1:44] » Councilmember Pepas.

[1:44] >> Here.

[1:45] » Here.

[1:45] >> Councilmember Gaeddert.

[1:46] » Councilmember Gaeddert.

[1:46] >> Here.

[1:47] » Here.

[1:47] >> Councilmember Harrison.

[1:49] » Councilmember Harrison.

[1:49] >> Here.

[1:49] » Here.

[1:49] >> Councilmember Ruben.

[1:50] » Councilmember Ruben.

[1:50] >> Here.

[1:51] » Here.

[1:51] >> Councilmember Caster.

[1:53] » Councilmember Caster.

[1:53] >> Here.

[1:53] » Here.

[1:53] >> Councilmember Cain.

[1:55] » Councilmember Cain.

[1:55] >> Here.

[1:55] » Here.

[1:55] >> Councilmember Larson.

[1:57] » Councilmember Larson.

[1:57] >> be here momentarily.

[1:59] » be here momentarily.

[1:59] >> And Council member Sunkle is absent.

[2:02] » And Council member Sunkle is absent.

[2:02] Mayor Mark Elkins is present and

[2:04] presiding. And there is Council member

[2:06] Larson. Thank you.

[2:07] >> note that Council member Larson has

[2:09] » note that Council member Larson has

[2:09] joined us. So, we do have a quorum

[2:10] present and we'll move on to the

[2:12] business of the evening. I would note

[2:14] that originally and as published the

[2:16] agenda

[2:17] is limited to the special business of

[2:19] the evening,

[2:20] but I also note that Ms. Strobel is in

[2:23] the audience and with that I would ask

[2:25] the clerk if there is a recommendation

[2:28] to amend the agenda to add a section for

[2:31] public comment.

[2:32] >> Yes, if I can just get a motion to

[2:35] » Yes, if I can just get a motion to

[2:35] approve an agenda.

[2:36] >> So, staff is recommending that?

[2:38] » So, staff is recommending that?

[2:38] >> Yes, sir.

[2:38] » Yes, sir.

[2:38] >> Thank you. Is there a motion then to

[2:40] » Thank you. Is there a motion then to

[2:40] approve the agenda as amended?

[2:42] >> So moved.

[2:43] » So moved.

[2:43] >> Thank you, Ms. Harrison. A second?

[2:45] » Thank you, Ms. Harrison. A second?

[2:45] >> Second.

[2:46] » Second.

[2:46] >> That was Ms. Gaylord, I believe. All

[2:48] » That was Ms. Gaylord, I believe. All

[2:48] those in favor, please indicate by

[2:49] saying I.

[2:50] >> I.

[2:51] » I.

[2:51] >> Those opposed, same sign. The eyes have

[2:53] » Those opposed, same sign. The eyes have

[2:53] it and the agenda as amended is

[2:56] approved. And with that, I will call

[2:59] the opportunity for public comment. I

[3:00] note that

[3:02] Ms. Strobel and her daughter Sloan are

[3:04] with us this evening. If you all would

[3:06] like to come forward, we'd appreciate

[3:09] I'll note for the record that we have

[3:10] received a invitation from the two of

[3:13] you for Wednesday. Some of us are going

[3:15] to be able to join you then, some of us

[3:17] not, but we very much appreciate the

[3:18] invitation. Ms. Strobel, the floor is

[3:20] yours. If you could introduce yourself

[3:22] even though we all know who you are,

[3:24] it'll make our record clear.

[3:25] >> Okay. Um, I'm Beth Strobel and I live at

[3:28] » Okay. Um, I'm Beth Strobel and I live at

[3:28] 10223 Lee Boulevard.

[3:30] >> And I'm Sloan Strobel and I also live at

[3:32] » And I'm Sloan Strobel and I also live at

[3:32] 10223 Lee Boulevard.

[3:34] >> All right. And thank you everybody

[3:36] » All right. And thank you everybody

[3:36] that's able to make it on Wednesday or

[3:39] another day. We walk to school most

[3:40] days. So, um I appreciate you amending

[3:44] the agenda, too. I know this is a

[3:46] special call, so

[3:47] um

[3:48] I wanted to get up and and just first of

[3:50] all let you know that if you come to our

[3:52] house to walk to school with us, we are

[3:54] not going to corner you about sidewalks

[3:55] on the east side of Lee Boulevard. Um

[3:58] really um I got to thinking about it and

[4:01] something that I've learned um

[4:03] throughout my career is that sometimes

[4:04] we get so focused on the solution to our

[4:06] problem that we forget what is the

[4:08] problem we're trying to solve. And what

[4:11] I want to just say to the the council is

[4:14] um I think that you know, the problem

[4:16] we're trying to solve is for people in

[4:18] in North Lakewood, really everywhere in

[4:19] Lakewood, but especially North Lakewood

[4:21] to be able to get around safely. Uh

[4:23] whether they're walking to school or out

[4:25] for a walk um or getting to and from a

[4:28] family member or friend's house. And so

[4:30] um I think there's there's opportunity

[4:32] for us to consider more than just

[4:34] sidewalks. Um and probably in the short

[4:36] term that might be more budget-friendly

[4:39] and something that's more within um the

[4:41] council and the city's um wherewithal to

[4:44] to do without having to go through quite

[4:47] as many process um oriented steps.

[4:50] And so um

[4:52] really we're we're here to say that you

[4:54] know, it hasn't become less important,

[4:56] but um open-minded to different options

[4:59] besides maybe just adding a sidewalk on

[5:01] the east side of Lee, even though I'll

[5:02] never let the dream go. Um and Sloan

[5:04] wanted to be add some things um related

[5:07] that she's been thinking about.

[5:08] >> Great. Welcome Sloan.

[5:10] » Great. Welcome Sloan.

[5:10] >> Thank you. Um my friend Renly lives

[5:12] » Thank you. Um my friend Renly lives

[5:12] further down south on Lee Boulevard and

[5:16] she I was thinking about it and I

[5:17] realized traffic is really different

[5:19] down there. And I was thinking about it

[5:21] and I realized it's because the roads

[5:23] are curved more curvy, they have stop

[5:25] signs every few blocks and the speed

[5:28] limit is 25 mph. And I thought I was

[5:31] thinking and I was like, well those

[5:33] don't take as long to

[5:36] execute as a sidewalk would and

[5:39] I think they'd be very effective and cuz

[5:41] the truth is every pedestrian should

[5:43] have

[5:44] the peace of mind that they're safe

[5:47] walking down the street walking down

[5:49] streets whether it's walking their dog,

[5:51] going up to meet friends, or just

[5:53] enjoying being outside. Every pedestrian

[5:54] deserves to have that peace of mind that

[5:57] they're safe and everything is

[6:00] on the way it should be. So

[6:02] >> So we're looking forward to the safe

[6:03] » So we're looking forward to the safe

[6:03] streets for all survey results as I'm

[6:05] sure everybody is and just working

[6:07] together with with the council

[6:10] with public works to figure out how we

[6:12] can um

[6:14] improve safety for pedestrians and in

[6:16] our part of Leawood but but other parts

[6:17] as well.

[6:19] All right and we look forward to seeing

[6:20] those that can make it on Wednesday.

[6:21] Thank you.

[6:21] >> Thank you Mrs. Strobel. Thank you Sloan.

[6:23] » Thank you Mrs. Strobel. Thank you Sloan.

[6:23] We appreciate your comments and you're

[6:25] joining us tonight.

[6:27] Don't believe there are any other

[6:28] comments

[6:29] from the or from the

[6:31] public tonight. So with that we'll move

[6:33] on to special business.

[6:35] I had the privilege and the pleasure

[6:36] this morning of attending the auction of

[6:39] our bonds. It was a very instructive

[6:41] session and

[6:43] as Jeremy will tell us it was a very

[6:45] successful exercise as we sat through

[6:48] the auction this morning. So Jeremy the

[6:51] floor is yours and if you could share

[6:52] with the governing body some of the

[6:54] exciting events that we saw during the

[6:55] course of the auction would

[6:57] [clears throat] be great. Thank you.

[6:58] >> Sure. Thank you very much. Jeremy

[7:00] » Sure. Thank you very much. Jeremy

[7:00] Wellnitz, director of finance. With me

[7:02] tonight is David Arterbury, our

[7:04] municipal advisor from Stifel. As the

[7:08] mayor mentioned we had a sale this

[7:09] morning for both the general obligation

[7:11] bonds and the notes. I believe that we

[7:14] had a successful representation on both

[7:17] issuances.

[7:18] Dave will get into those details with

[7:20] you but we had three bidders on the

[7:21] notes and we had 12 bidders on the bonds

[7:23] and

[7:24] got very competitive rates on both. So

[7:27] with that I'll turn it over to David and

[7:29] he'll be happy to answer any questions

[7:30] that you all may have.

[7:32] >> Mr. Arterbury, welcome.

[7:34] » Mr. Arterbury, welcome.

[7:34] >> Thank you. Thank you. Thank you Jeremy.

[7:36] » Thank you. Thank you. Thank you Jeremy.

[7:36] I do have a couple of handouts here for

[7:43] » Thank you.

[7:48] Yeah,

[7:49] as Jeremy mentioned today,

[7:51] the city took bids for

[7:53] the series 2026 general obligation

[7:56] temporary notes and general obligation

[7:58] bonds to finance a variety of different

[8:01] capital improvement projects around the

[8:03] city.

[8:04] Before I go into specifically the

[8:06] results, I wanted to talk a little bit

[8:07] about what we've been up to since I or

[8:11] my colleague Connor was last here.

[8:14] Basically, since we were here last, one

[8:16] of the the big things we did is we went

[8:18] out and worked with Moody's Investor

[8:20] Service to have the city's rating

[8:22] reviewed and affirmed at the triple A

[8:24] level. And so one of the handouts that I

[8:27] gave you here is Moody's. This is their

[8:29] simple write-up that they do when they

[8:32] do a rating. And you can kind of look

[8:34] through it. Some of the highlights of

[8:37] the rating were that they like your

[8:39] strong residential income. They like you

[8:41] the the tax base relative to the the

[8:44] population size.

[8:45] >> [clears throat]

[8:46] » [clears throat]

[8:46] >> The ongoing development that's occurring

[8:48] » The ongoing development that's occurring

[8:48] in the city.

[8:49] Strong fund balances and liquidity. And

[8:52] rapid debt repayment. They they view

[8:55] that as all positive things for the for

[8:57] the city.

[8:58] So

[9:00] rating call went very well.

[9:02] Diane and Jeremy did a really good job

[9:05] of presenting the city's credit to

[9:07] Moody's and also to responding to all

[9:09] the questions that they had. Besides the

[9:12] rating, we also completed some due

[9:14] diligence questions just to make sure we

[9:16] are aware of everything going on within

[9:17] the city. We also talked a little bit

[9:20] about So we also completed all of the

[9:23] the bidding documents and the disclosure

[9:25] documents that were distributed last

[9:28] week to potential bidders around the

[9:30] country.

[9:31] And then all that led up to the sale

[9:33] this morning.

[9:35] To talk real quickly on the backside of

[9:38] that rating report, you'll see a graph.

[9:41] Um, this is just a graph of interest

[9:43] rates for highly rated municipal bonds

[9:47] um, over about the last four or five

[9:49] year period. Um, I just kind of wanted

[9:52] to illustrate to you what rates have

[9:54] done really since they started rising

[9:57] back at the beginning of 2022.

[10:00] And I put on here um, a few milestones

[10:03] for some of the of the city's other

[10:06] recent bond and note issues that you've

[10:08] had. Um, so you can kind of see the

[10:11] interest rates here over the last, you

[10:13] know, four years have really kind of

[10:14] bounced around in a range.

[10:17] The last couple of weeks we actually had

[10:19] a little spike up in rates about a

[10:20] quarter of a percentage point or so. Um,

[10:23] but that seems to have stabilized a

[10:24] little bit in the last few days. So, um,

[10:27] that's sort of the market we're facing.

[10:30] And then today, as was mentioned, um,

[10:32] what bids were received. Uh, we we met

[10:34] up in the conference room and got a

[10:37] total of three bids on the temporary

[10:38] notes.

[10:39] Um, the best bid was submitted by Bank

[10:42] of America Securities

[10:44] uh, with a net interest cost of

[10:45] 2.796374%.

[10:51] Um, and then a couple of bids by J.P.

[10:53] Morgan and Oppenheimer that were a

[10:54] little bit above that.

[10:56] Um,

[10:57] going into this I was anticipating or

[10:59] predicting a rate of about 2.95%.

[11:02] So, I was real glad to see this come in.

[11:05] Um, the next um, half an hour after that

[11:08] we opened up the bids on the bonds. And

[11:11] if you flip over that page, you can see

[11:13] the results of that. We were really

[11:16] happy to see a total of 12 bids come in

[11:19] on the on the bonds. Um,

[11:21] that's as far as I can tell the most, at

[11:23] least going back five years, that the

[11:25] city has received on any of its of its

[11:28] debt offerings.

[11:30] Um, all the bids you can see there are

[11:32] the rank um of them based on their

[11:34] lowest true um based on their true

[11:36] interest cost.

[11:38] The best bid um was submitted by

[11:40] Fidelity Capital Markets with

[11:42] a true interest cost of 3.621323%.

[11:48] Um I was predicting a rate probably 2.85

[11:52] to 2.9. So, again, real happy to see see

[11:55] all these bids come in.

[11:57] Um both Bank of America and Fidelity um

[12:02] their bid was fully compliant with all

[12:04] of the bidding parameters and they

[12:06] provided the required good faith

[12:08] deposit. Um that also with regards to

[12:13] the bonds uh after the bid was received,

[12:16] we we looked at how the bid was

[12:18] constructed and based on that we resized

[12:21] the bond issue.

[12:23] Uh so, the final principal amount of the

[12:25] bonds ended up being 9,595.

[12:30] Uh instead of up above there it mentions

[12:32] 9,850.

[12:33] So,

[12:34] um but other than that um that that

[12:37] resizing everything went really well and

[12:39] we just as we expected and real pleased

[12:42] with the outcome. Um

[12:44] The only steps that you've got left as a

[12:47] governing body tonight in order to lock

[12:50] in the interest rates and officially

[12:51] authorize the issuance of the notes and

[12:53] the bonds is to

[12:55] uh adopt a a bond ordinance and a bond

[12:58] resolution and a note resolution. So,

[13:01] think you might have three action items

[13:03] in front of you.

[13:04] Um but I obviously we

[13:07] welcome to uh welcome any questions that

[13:09] you might have about the process or the

[13:11] outcome.

[13:12] >> Mr. Riderbury, just one clarification

[13:14] » Mr. Riderbury, just one clarification

[13:14] and I may have misunderstood you, but I

[13:17] thought I heard you say that heard you

[13:19] to say that you had anticipated that the

[13:21] bond rate would be 2.89 to 2.9. I

[13:25] believe that was the note rate. What was

[13:27] your expectation on the bond rate?

[13:29] >> The bonds I was expecting about 3.85

[13:33] » The bonds I was expecting about 3.85

[13:33] to 3.9.

[13:34] >> I think it's important for the governing

[13:35] » I think it's important for the governing

[13:35] body to recognize that they came in

[13:36] actually less expensive for us than what

[13:39] we had anticipated they would be for the

[13:41] city.

[13:41] And we want to clarify our record for

[13:43] that. So, I appreciate you doing that.

[13:45] Um

[13:46] any other questions for either our

[13:49] finance department or from Mr.

[13:50] Atterbury?

[13:53] Jeremy, did you have anything to add?

[13:56] >> Um

[13:56] » Um

[13:56] just a matter of housekeeping. So, uh

[13:59] when the agenda was published, we had

[14:01] uh preliminary items uh for all three of

[14:04] the motions uh set before you tonight.

[14:06] And as is our custom, uh anything that

[14:09] has been uh removed from that

[14:12] preliminary has been stricken out, and

[14:14] anything that is new is underlined.

[14:17] So, anyone who would have looked at

[14:18] these uh items before the sale would

[14:21] note that we didn't have a bidder, we

[14:22] didn't have a bid amount, we didn't have

[14:23] the interest costs. Those have all now

[14:25] been filled in. We'd be happy to answer

[14:27] any questions that you all may have.

[14:28] >> And we published those revisions earlier

[14:30] » And we published those revisions earlier

[14:30] this afternoon, so they are a matter of

[14:31] public record.

[14:33] Any other questions for Jeremy?

[14:36] All right. If not, we thank you both for

[14:38] all the work that you've done. Uh we'll

[14:39] come now to the individual uh items on

[14:42] the special business. As Mr. Atterbury

[14:44] noticed noted, uh the first item uh to

[14:47] be considered is an ordinance

[14:48] authorizing and providing for the

[14:50] issuance and delivery of 9,595,000

[14:54] dollars in general obligation bonds

[14:56] series 2 2026A of the City of Leawood,

[15:00] Kansas uh to provide funds to finance

[15:02] the cost of certain public improvement

[15:04] projects within the city, providing for

[15:06] the levy and collection of an annual

[15:08] tax, if necessary, for the purpose of

[15:10] paying the principal of and interest on

[15:13] said notes as they become due,

[15:16] authorizing certain other documents and

[15:18] actions in connection therewith, and

[15:20] making certain covenants with respect

[15:22] thereto.

[15:23] Is there a motion from the governing

[15:25] body to adopt such an ordinance?

[15:28] >> So moved.

[15:29] » So moved.

[15:29] >> Thank you, Ms. Larson. Is there a

[15:30] » Thank you, Ms. Larson. Is there a

[15:30] second?

[15:31] >> Second.

[15:32] » Second.

[15:32] >> Thank you, Ms. Gayed.

[15:34] » Thank you, Ms. Gayed.

[15:34] It's been moved and seconded

[15:36] that we adopt the ordinance I described

[15:38] a moment ago. Is there any discussion

[15:39] over the motion?

[15:42] If not, I'll note that this requires a

[15:44] roll call vote of the governing body and

[15:45] would ask the clerk to call the roll,

[15:47] please.

[15:48] >> Councilmember Pappas.

[15:49] » Councilmember Pappas.

[15:49] >> I.

[15:50] » I.

[15:50] >> Councilmember Larson.

[15:51] » Councilmember Larson.

[15:51] >> I.

[15:51] » I.

[15:51] >> Councilmember Gayed.

[15:53] » Councilmember Gayed.

[15:53] >> I.

[15:53] » I.

[15:53] >> Councilmember Ruben.

[15:55] » Councilmember Ruben.

[15:55] >> I.

[15:55] » I.

[15:55] >> Councilmember Harrison.

[15:57] » Councilmember Harrison.

[15:57] >> I.

[15:58] » I.

[15:58] >> Councilmember Cain.

[15:59] » Councilmember Cain.

[15:59] >> I.

[15:59] » I.

[15:59] >> Councilmember Caster.

[16:01] » Councilmember Caster.

[16:01] >> I.

[16:02] » I.

[16:02] >> Thank you. I have a vote of seven votes

[16:04] » Thank you. I have a vote of seven votes

[16:04] in favor and none against, so the vote

[16:07] passes and the ordinance is hereby

[16:09] adopted. The second item under special

[16:12] business that relates to these

[16:15] promissory notes, I believe oh, the

[16:17] first one is actually the

[16:20] bonds and that's a resolution

[16:22] prescribing the form and details of and

[16:24] authorizing directing the sale and

[16:26] delivery of $9,595,000

[16:29] in general obligation bonds series 2026A

[16:32] of the city of Leawood, Kansas

[16:34] previously authorized by ordinance

[16:36] number 3217, which we just adopted, of

[16:39] the city making certain covenants and

[16:41] agreements to provide for the payment

[16:43] and security thereof and authorizing

[16:45] certain other documents and action

[16:47] connected therewith. Do I hear a motion

[16:50] from the governing body to adopt this

[16:51] resolution?

[16:52] >> So moved.

[16:53] » So moved.

[16:53] >> That would be Mr. Pappas. Is there a

[16:55] » That would be Mr. Pappas. Is there a

[16:55] second?

[16:56] >> Second.

[16:57] » Second.

[16:57] >> Thank you, Ms. Larson. Is there any

[16:58] » Thank you, Ms. Larson. Is there any

[16:58] discussion over the proposed resolution?

[17:01] If not, all those in favor of adopting

[17:03] the resolution relating

[17:05] to the sale of the general obligation

[17:07] bond series 2026A,

[17:10] please indicate by saying I.

[17:11] >> I.

[17:12] » I.

[17:12] >> Those opposed, same sign. The eyes have

[17:15] » Those opposed, same sign. The eyes have

[17:15] it and the the um

[17:17] resolution is adopted on a 7-0 vote.

[17:20] Last item relating to today's sale is a

[17:23] resolution prescribing the form and

[17:25] details of and authorizing and directing

[17:28] the issuance, sale, and delivery of

[17:30] $30,650,000

[17:33] of general obligation temporary notes

[17:36] series 2026-1

[17:38] of the city of Leawood, Kansas,

[17:40] providing for the levy and collection of

[17:42] an annual tax, if necessary, for the

[17:44] purpose of paying the principal of and

[17:46] interest on said notes as they become

[17:48] due, making certain covenants and

[17:50] agreements to provide for the payment

[17:52] and security thereof, and authorizing

[17:54] certain other documents and actions

[17:55] connected therewith.

[17:57] Do I hear a motion from the governing

[17:58] body uh to adopt this resolution

[18:01] relating to the temporary notes?

[18:03] >> So moved.

[18:05] » So moved.

[18:05] >> That was Ms. Ruben. Is there a second?

[18:07] » That was Ms. Ruben. Is there a second?

[18:07] >> Second.

[18:07] » Second.

[18:07] >> Thank you, Ms. Gayed. Is there

[18:09] » Thank you, Ms. Gayed. Is there

[18:09] discussion over the pending motion?

[18:11] If not, all those in favor of adopting

[18:13] the resolution relating to the sale of

[18:16] the general obligation temporary notes

[18:18] series 2026-1,

[18:20] please indicate by saying aye.

[18:22] >> Aye.

[18:23] » Aye.

[18:23] >> Those opposed, same sign. The ayes have

[18:25] » Those opposed, same sign. The ayes have

[18:25] it, and the motion carries on a 7-0

[18:27] vote, and the resolution is adopted. Uh

[18:31] I think that concludes the business with

[18:32] respect to with respect to the sale of

[18:35] the bonds and um the promissory notes.

[18:37] Again, uh our thanks to um

[18:40] Mr. Atterbury as well as Mr. Wilmoth for

[18:43] all the work they and their departments

[18:45] did with respect to both maintaining uh

[18:48] our AAA rating for, I believe, the 18th

[18:50] year, if I remember correctly,

[18:52] uh and the impact that that had on the

[18:54] cost of our borrowing uh in this 2026.

[18:59] Don't believe there's any additional um

[19:02] matters on the agenda this evening. So,

[19:04] with that, I will declare the meeting

[19:05] adjourned. We will reform in the

[19:08] conference room for the special call

[19:11] work session uh that was published uh

[19:13] last week. Thank you all. Appreciate it.

[19:17] >> You can have

Governing Body Special Call - Aug 10 2026

Transcript