[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