City Commission - Regular Meeting

Thank you. Thank you.

1026, it is 1 p.m. Madam Clerk, do we have a quorum?

Yes, Mayor.

Commissioner Cessna will lead the Pledge of Allegiance and the invocation. Please stand.

I 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. Please bow your heads. Dear Heavenly Father, thank you for this cooler day that you have provided us. Please give us moisture to help nourish our crops. Watch over us today as we work together to make decisions to move our community forward in a positive direction, comfort those that have lost loved ones here recently, and watch over our first responders as they work to keep us safe and to protect our peace. In this we pray, amen.

Item four is the approval of the minutes of the last regular meeting, which if no corrections are offered, shall stand approved. Are there any corrections? Seeing none, they shall stand approved. Item five is public comment. This is on our agenda to allow members of the public to come up to share their opinion on anything that is not on the agenda. Great, we'll move to item six.

Item 6A, the governing body is asked to consider and approve allowing the mayor to proclaim May 17th through 23rd, 2026 as Emergency Medical Services Week in Garden City, Kansas. I'll entertain a motion for this item.

I move that we approve the proclamation as presented. There's been a motion. Is there a second? Second. There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes. Director Smith, would you like to share something on this?

Good afternoon, Mayor, Commissioners. I'd like to take a moment to recognize National EMS Week, which is being observed this week across the country. EMS Week is an opportunity to honor the dedicated paramedics, AT&Ts, and EMTs who serve our community every day. These professionals are available 24 hours a day, 7 days a week, providing critical care during some of the most stressful and life-changing moments in people's lives. Whether responding to medical emergencies, vehicle accidents, fires, or disasters, our EMS personnel bring skill, compassion, and calm under pressure. Their work often goes unseen, but their impact is felt throughout the community. Thank you for this opportunity.

Thank you.

Thank you.

You've got some folks here today with you. Kenny, you want to bring them in and introduce them and get a picture? Yep.

Sorry, I didn't introduce myself. Kenny said that I didn't want to be in this character. Do you want me to introduce one by one?

Sure. I'll take this, you take this, and the commissioner will come down and take a picture with you.

I'll read the proclamation after you introduce them.

All right. So today we have Lou Schiff on today. So Ricardo, Heather, Mr. Egan, he is a reservist that's working out today. You guys can come closer. James Falky, he's the supervisor on today. And then Luke Sullivan is our assistant director. So we do have another crew. Are they? Oh, okay. All right. We do have another crew member. She's on a flight right now as far as just being on a call. But thank you for this opportunity for us to have this with the city. Great.

And I'll read the proclamation. Whereas emergency medical services EMS personnel are a vital public service in the City of Garden City, providing life-saving care to residents and visitors 24 hours a day, seven days a week. And whereas EMS professionals, including paramedics, advanced emergency medical technicians demonstrate unwavering dedication, courage, and compassion while serving the diverse needs of the City of Garden City community. And whereas these highly trained individuals are often the first on the scene during medical emergencies, accidents, disasters, and public health crises, delivering critical pre-hospital care and ensuring the safe transport of patients to medical facilities. And whereas EMS providers work in close coordination with local hospitals, law enforcement, fire departments, emergency management agencies to safeguard the health, safety, and well-being of all who live in and travel through the City of Garden City. And whereas the members of Finney County's EMS system consistently go above and beyond the call of duty, often placing themselves at risk to protect and care for others, whereas Emergency Medical Services Week provides an opportunity to recognize and honor the commitment, professionalism, and sacrifices of EMS personnel, and to promote community awareness of the essential services they provide. Now, therefore, I, Tom Nguyen, the Mayor of the City of Garden City, Kansas, do hereby proclaim May 17th through the 23rd, 2026, as Emergency Medical Services Week in Garden City, Kansas, and encourage all residents to join in honoring and expressing gratitude to EMS personnel for their outstanding service and dedication. Signed and sealed this 19th day of May, 2026, Tom Nguyen, Mayor.

Thank you. All right, ready? One, two, three. Oh, looks good.

Thank you all.

Item 7A, the governing body would like to recognize and congratulate the graduates and participants of the 2026 Citizens Academy Program. Erin.

Hello, good afternoon, Mayor and Commissioners. Well, our 2026 Citizens Academy program just wrapped up. It was a great eight weeks with a great group. In front of you is the list of participants who went through this year's program. We've got several in the audience that we would like to bring up and recognize. We've got Brenda Reeve, Judy Obrecht, Emily Hamlin-Deloach, Darla Sammy, Nikita Ortiz, Fred DiSalvo, Rhea and Joji San Pedro, and Michael Bork.

And would you all like to take a picture with the graduates? Sure.

Hello. You got any questions? You're already here. You're getting ready to get started. Oh, my God. But if we move forward a little bit, we're going to get a lot more people. And then the tall people are going to get a lot more people. Oh, great. Awesome. All right. Tommy, you want to take the ones that are this way? Yeah.

Congratulations, thank you very much.

And not to put any of you on the spot, but are there any participants who would like to speak about the experience? Something that was a highlight maybe?

I mean, you know what happens to my personality. Hello. Hello. Hi everyone, I'm Emily and I will say that this was my first year both personally and professionally to be able to have the opportunity to experience the inner workings of the community here in Garden City on this side and I will just say It's perfect fitting with emergency services. Everything that I saw with the firefighters and our EMS, even from at the zoo, the behind the scenes, people just don't know the incredible work that's happening between what you all and your friends and your opportunities are providing. The zoo, when we were with Ms. Cunningham's group, just the scenarios that they put us through so that we knew how much things actually cost. The zoo monopoly game was very eye-opening. Wow. How much things cost. So it's a testament to what all you also provide and provide our city. And thank you for all of your hard work, too.

Thank you. Thank you. Thank you. Thank you. I'm glad you got to see me.

Thank you.

Thank you all. Item 7B, congratulations to the Electric Department in receiving three Distinguished American Public Power Association Awards. Jose?

I think we're on now. Okay. On March 29th, it was announced that the American Public Power Association Engineering and Operation Conference in Huntsville, Alabama, that APPA commended the City of Garden City Electrical Department for achieving exceptional electric reliability in 2025. We have compared your electric utilities reliability data from the Power TRX e-reliability powered by e-SAMS to the National reliability data collected by the Energy Information Administration. We are pleased to inform you that the Garden City Electrical Department is on the top 25% of utilities for the system average interruption duration index, including or excluding IEEE meds based on EIA date in 2022 through 2024, thereby qualifying for the 2025 Certificate of Excellence in Reliability. The Garden City Electric Department was also awarded the APPA Reliable Public Power Provider, RP3, Platinum Award. An RP3 designation is a sign of the utility's dedication to operating an efficient, safe, and reliable distribution system. BEING RECOGNIZED BY THE RP3 PROGRAM DEMONSTRATES THE COMMUNITY LEADERS, GOVERNING BOARD MEMBERS, SUPPLIERS, AND SERVICE PROVIDERS A UTILITY'S COMMITMENT TO ITS EMPLOYEES, CUSTOMERS, AND COMMUNITY. CURRENTLY 251 OF THE NATION'S MORE Currently, 251 of the nation's more of the 2000 public power utilities hold an RP3 designation. In addition, the Garden City Electrical Department has earned the American Public Power Association Diamond Safety Award for Safe Operating Practices in 2025. The utility has earned the highest award for two consecutive years in the utility category with 30,000 to 60,000 worker hours of annual worker exposure. More than 240 utilities enter the annual safety award for 2025. Entrants are placed in accordance with the number of worker hours worker hour in rank on the most incident-free records of overall state of their own safety program and culture during 2025 the incident rate is based on Its base is the number of work-related reportable injuries or illness and the number of worker hours during 2025 as defined by the Occupational Safety and Health Administration in the public power. Safety excellence isn't achieved by chance. It's earned through unwavering discipline, strong leadership, and a culture where every team member looks out for one another, said John Beasley, Chair of APPA Safety Committee and Vice President of Electric Cities of Georgia. These safety awards recipients stand as proof that commitment and consistency saves lives, strengthens communities, and sets the benchmark for an entire industry. THE SKADA GENERATION BFD FOREMAN AND ELECTRIC TECHNICIAN WERE IN ATTENDANCE TO RECEIVE THESE AWARDS ON BEHALF OF THE CITY OF CARTER CITY.

CONGRATULATIONS.

AND WE HAVE STAFF HERE FOR A PICTURE. ALL RIGHT.

All right, ready? Congratulations.

Item 7C, we're pleased to announce that the city received notification of its annual grant award from the Finup Foundation Trust. For 2026, the Foundation Trust generously provided $118,000 for improvements to the city's park system. So thank you to the Finups for their continued support. Items 7D through 7I are all staff reports. If there's any questions regarding those, we'd be happy to answer them.

Just thank you for the summary of the spring cleanup on how much was taken to the landfill and everything. Always nice to have that service provided in the community to keep our community nice.

You're welcome.

Item eight, meetings of note. Would want to add a new item to put on your agenda. Specific times and details to be announced, but generally the lunch hour of June 10th. If you would calendar that for the Kansas Health Science University, Kansas College of Osteopathic Medicine, I think has been its name in the past. bringing, for their fourth consecutive year, their rural medicine year one students out to Garden City to visit this community. They'll have several visits with those in the medical profession, but also wanna dip into what life is like in a rural community. Rural Kansas City. And so I think it's the meeting with city and county elected officials has been well received. And they're interested in doing that again. So June 10th, it's a Wednesday, is the date they've identified. That lunch will be held here at the city commission, or I'm sorry, in the large meeting room. We'll invite the county commissioners to attend as well. Great. And the specific details will be on the next meetings of note on the next agenda, but certainly wanted to get it on your radar now. Any of those requiring RSVPs, please do that through the city clerk's office. Item 9A, the appropriation ordinance. If approved, it would be ordinance number 2611-2026A.

Mayor, I make a motion we approve appropriation ordinance number 2611-2026A. There's been motions there a second.

Second.

There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes.

Item 10A, the governing body is asked to consider and approve an ordinance rezoning from commercial office and service business district to R2, single family residential district, for the property generally located at 306 North 6th. Angie?

Good afternoon, Mayor and Commissioners. Andrea Herrera applying to commission with Neighborhood and Development Services. Today we have Vivian Finkhouser who is requesting a lease on the property at 306 North 6th Street from CO Office and Service Business District to R2 Single Family Residential District. The lot is approximately 5,065 square feet in size and is located in the downtown area, surrounded primarily by properties zoned CO Office and Service Business District. The property contains an existing structure of approximately 884 square feet that is currently being used as a residence. Although the property is zoned commercial, it has historically been utilized for residential purposes. The applicant has indicated that attempts have been made to sell the property but has been unable to do so as financial institutions are unwilling to provide a mortgage financing for the property due to its current commercial zoning. As a result, this has created a hardship for the property owner by making it difficult to sell the property for its established residential use. The property is currently zoned CO Office and Service Business District, but is being used for residential purposes, which constitutes illegal non-conforming use. Resuming the property to a residential district would bring the zoning into conformance with the existing use. The applicant initially proposed rezoning to R1 single-family residential district, which is consistent with the property's existing residential use. However, it does not meet the minimum lot size requirements for the R1 single-family residential district. Since the property does not meet the lot size requirements, staff and the Planning Commission recommended rezoning to R2, single-family residential district, which requires a lot size of 5,000 square feet. The purpose and intent of the R2 single-family residential district is to account for those areas that were platted into smaller lots during the early years of the city's growth. Rezoning the property to R2 single family residential district would allow the property to be sold as residential as well as provide owners a possibility of obtaining permits and improvements, including the ability to perform certain work without the requirement of a licensed contractor as permitted by city code. While the property is located within the commercial area, the block to the east is zoned R3, Multiple Family Residential District, which provides a transition between commercial and residential uses. Given the property's long-standing residential use and the surrounding zoning context, the requested rezoning is not expected to create significant adverse impact to the area. The governing body shall make its determination and state its findings in according with the criteria in section 27.040, items A through I of the Garden City zoning regulations. The Planning Commission recommended approval of the proposed rezoning request at the April 16th, 2026 meeting. And today you have three alternatives for you. Alternative one, the governing body may adopt the Planning Commission's recommendation by approving the proposed ordinance. Two, the governing body may override the Planning Commission's recommendation by two-thirds majority vote. And three, the governing body may return the recommendation to the Planning Commission with a statement specifying the basis for the governing body's failure to approve or disapprove. Staff recommends that the governing body adopt the planning commission's recommendation and approve the proposed ordinance. And the applicant is here, and I'd be happy to answer any questions you have.

Could we have the ordinance number for this? 3048. 3048. Dash 2026. Dash 2026. Any questions for staff or for Vivian? No. Mayor, I make a motion we approve ordinance number 3048-2026.

There's been a motion. Is there a second?

Second.

There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes. Thank you.

Thank you very much. Item 10B, the governing body is asked to consider and approve an ordinance rezoning from CO Office and Service Business District to C3 Central Business District for the property generally located at 210 East Spruce Street. If approved, this ordinance number would be 3049-2026.

good afternoon mayor commissioner dante thompson neighborhood development john lindner is requesting to rezone 210 east spruce street from ceo office and service business district to c3 central business district the lot is approximately 0.15 acres and adjacent to the ceo district to the east south and north and the c3 district to the west the property was previously a bakery but that use as well as restaurants are not permitted within the ceo district but the owner intends for the building to continue to be used for and suited to a bakery or restaurant tenant. Since bakeries and restaurants are not permitted in the current zoning district, remodeling to accommodate a new one would be limited by the non-conforming section of the zoning regulations. By rezoning to the C3 district, any future bakery or restaurant would conform to the zoning regulations while allowing several other commercial related uses beyond those in the CO district. Before any remodeling is allowed and a building permit is issued, building plans drawn by a licensed architect must be submitted and reviewed for compliance with the building and zoning regulations. The existing law is consistent with the characteristics of other buildings in the Central Business District, which include limited off-street parking and the existing building being near the property line. Additionally, the Garden City downtown plan designates this area as part of the downtown area boundary, while the Garden City comprehensive plan designates it as mixed use, including commercial uses. The governing body may make its determination and state its findings according to the criteria in section 27.040 of the Garden City zone regulations. Included in the memo is the complete list of this criteria labeled as items A through I. The Planning Commission recommended approval of the proposed rezone request at their April 16th, 2026 meeting to which the minutes are attached. There are three alternatives in front of you. One, the governing body may adopt the Planning Commission's recommendation by approving the proposed ordinance. Two, the governing body may override the Planning Commission's recommendation by a two-thirds majority vote. Or three, the governing body may return the recommendation to the Planning Commission with a statement specifying the basis for the governing body's failure to approve or disprove. Staff recommends the governing body adopt the Planning Commission's recommendation and approve the proposed ordinance. The applicant is also present, and I'm happy to answer any questions you guys have.

Any questions for staff or the applicant? I will entertain a motion for this item.

I move to approve ordinance number 3049-2026. There's been a motion.

Is there a second?

I second.

There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes. Thank you.

Item 10C, the governing body is asked to consider and approve a resolution establishing a date and time for a public hearing regarding the reinvestment housing incentive district for Thompson Point. If approved, this would be resolution number 3222-2026. Alicia. Mayor, commissioners.

As required by the RHID statute, this resolution establishes a date and time for a public hearing at which a development plan and an ordinance establishing Thompson Point RHID will be considered. The date and time proposed in this resolution are July 7th, 2026 at 1.30 PM. A preliminary copy of the development plan to be considered at this time is included in your memo review that is incorrect we do have a copy at the clerk's desk for public inspection this resolution is the second step the commission needs to establish the rgd district for thompson point the thompson point development is located at north 11th street and West Thompson Street, and will include 48 apartment units along with a clubhouse and a maintenance building. Your alternatives today are the governing body may approve the attached resolution, or the governing body may not approve the attached resolution. And staff recommends the governing body approve the attached resolution.

Any questions for staff? Signe and I will entertain a motion for this item.

I move to approve resolution number 3222-2026. There's been a motion.

Is there a second? A second. Commissioner Landgraf. Commissioner Landgraf seconded. There's been a motion and a second. Any further discussion? All those in favor say aye. Aye. Opposed, nay. Motion passes. Thank you. Thank you. I'm going to step down for this item. Okay.

Item 10D, the governing body is asked to consider and approve a resolution to submit an application for a grant opportunity towards recreational trail work through Pathways to a Healthy Kansas funded by Blue Cross Blue Shield of Kansas. If approved, this would be resolution number 3223-2026. Casey. Good afternoon, commissioners.

The City of Guernsey City has been working with Little Guelph-Lenny County and Blue Cross and Blue Shield of Kansas as part of the Pathways to a Healthy Kansas initiative. This collaboration supports community-wide efforts to improve active living, safety, and access to public infrastructure. As part of the Pathways multimodal transportation and recreational trails package, City staff engaged residents and frequent trail users to identify barriers and priorities related to trail access and safety. Based on this engagement, staff identified targeted improvements along the Talley Trail to address accessibility, safety, and usability concerns. The proposed project includes crack sealing a section of Talley Trail and installing additional light poles starting at the west end of the trail going toward Taylor Avenue. The attached resolution authorizes the park superintendent or designees to sign the partnership agreement with Live Well Finney County. The signed resolution and the partnership agreement are required steps for the city to qualify for pathways implementation grant funding of up to $50,000. Under the terms of the partnership agreement, the City of Garden City commits to coordinating the multimodal transportation and recreational trail project through the Parks and Recreation Department, using community engagement feedback to identify priorities and guide infrastructure improvements, completing the proposed tally trail improvements including crack sealing and safety enhancements, ensuring Pathways funded improvements meet ADA accessibility requirements, or providing written justification where full accessibility is not feasible, maintaining the improvements for a minimum of 10 years, tracking and reporting required project metrics, including linear feet of improved trail infrastructure and matching resources, complying with all pathways, communication, branding, and reporting requirements for the duration of the agreement. There are two alternatives before you today. One, the governing body may approve a resolution to submit an application for a grant opportunity towards recreational trail work through Pathways to a Healthy Kansas funded by Blue Cross and Blue Shield of Kansas. And two, the governing body may not approve a resolution to submit an application for a grant opportunity towards recreational trail work through Pathways to a Healthy Kansas funded by Blue Cross and Blue Shield of Kansas. Staff recommends the governing body approve resolution to submit an application for a grant opportunity towards recreational trail work through Pathways to a Healthy Kansas funded by Blue Cross and Blue Shield of Kansas. The fiscal note, the city's in-kind match will include $15,000 from the park's budget under Repair Grounds 1003-1311-5475. The local health engagement team, L-HEAT, will match $5,000 And the maximum award through Blue Cross and Blue Shield of Kansas grant is $50,000, providing a total of $70,000 to the Tally Trail Repairs. Thank you.

Are there any questions? Is there a motion?

I make a motion. We approve Resolution 3223-2026.

I second. Okay. It's been moved and seconded. Any other discussion? All those in favor say aye. Aye. Opposed? Motion carries. Thank you.

Thank you.

Item 12A, the governing body is asked to consider and reject a bid from Kane Construction Services for the construction of the Stone Creek Drive sanitary sewer improvements. Fred.

Good afternoon, Mayor and Commissioners. On May 7th, 2026, staff received one bid for $468,087.23 for the construction of a sewer improvement on Stone Creek Drive. The improvements exceeded the engineer's estimate of $292,505 by approximately 60%. The project consisted of constructing 1,300 linear feet of 12 inch gravity sewer including manholes. The purpose of the project was to increase the efficiency of the sewer force main that empties into this section of the sewer by increasing pipe diameter. If this bid is rejected, staff will incorporate this project into a future city project. The bid summary is attached to this memo. Alternatives for the governing body. The governing body may choose to reject the bid from Keene Construction Services. Alternative two, the governing body may approve the bid from King Construction Services for $468,087.23. Staff recommends that the governing body reject the bid from King Construction Services. The City of Garden City purchasing and contracting manual financial guidelines provide direction to staff on projects requiring a bid process and the recommendation I offer you today is based on a couple of factors. The project significantly exceeds the engineer's estimate and only one bid was received. If funded, the project would be designated from additions, repair sewer mains, and the GL code is listed there for your reference.

Any questions for staff?

Are you going to make any changes then to the bidding? Or is it just because there was one bid and it was so out of scale for the price?

So we post those bids on the city website and then the Our engineer PEC posts those on a wide scale bidding site called Drexel. We had about six plan sets downloaded but only ended up receiving one bid. Probably the scale of this project and the amount of other projects going on in Garden City maybe affected how attractive it was. So that's where our thought is that it might be a better value to incorporate that with another project where we're gonna be installing the pipe.

Okay, thank you. Any further questions for staff? Cigna and I will entertain a motion for this item.

Mayor, I make a motion that we reject the bid for Cohen Construction Services.

This motion is there a second.

SECOND.

THERE'S BEEN A MOTION AND A SECOND. ANY FURTHER DISCUSSION? SEEING NONE, ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED, NAY. MOTION PASSES. THANK YOU. THANK YOU, FRED.

ITEM 12B, IT'S TIME FOR OUR BUDGET DISCUSSIONS, SO I'LL RELINQUISH MY SEAT AND LET JARED COME UP AND TALK TO YOU ABOUT ENTERPRISE FUNDS.

GOOD AFTERNOON.

HELLO.

SIMILAR TO LAST TIME, I'LL TALK. STOP ME IF YOU WANT TO, OTHERWISE I'LL JUST KEEP GOING LIKE A TRAIN. THE FRONT PAGE HERE HAS AN UPDATE, SO YOU HAVE THE ENTERPRISE FUNDS AS WELL AS ALL THE FUNDS YOU REVIEWED AT THE LAST COMMISSION MEETING, AND SO THIS IS AGAIN THE 2025 ENDING BALANCE OR 26 STARTING BALANCE, THEN THE IMPACT OF THE REVENUES AND EXPENDITURES AS EXPRESSED IN THE 26 REVISED and the 27 original budgets, and then you'll have your ending balance. I will point out there's two pieces here, two new columns, the 27 cash carry forward and the 26 delinquent tax. When we calculate with the state how much tax will need to be levied for the need to accomplish the budget as presented, they calculate for a delinquency amount. And so with us having the bonded interest in the airport, I've included that delinquent tax. And so that amount is included in the revenues. It's above what the actual budget figure will show in our system or what you'll see because we anticipate living for that, but not receiving those funds. AND THEN THE 27 CASH CARRY FORWARD COLUMN. THIS IS THE TARGETED AMOUNT OF CASH FORWARD THAT WE AIM TO RETAIN IN THE FUND. WE DON'T DO ANY OF THAT IN THE BONDED INTEREST. WE GET TO ZERO BALANCE. BUT FOR AIRPORT, OUR TARGET LAST YEAR, COUPLE YEARS, HAS BEEN AROUND $600,000. WE'VE ACCOMPLISHED THAT THROUGH EITHER THIS CASH FORWARD OR KIND OF A RETAINED AMOUNT IN OUR AIRPORT IMPROVEMENT LINE. WHICH WE CAN SPEAK TO A LITTLE BIT AS WE GO THROUGH THE BUDGET. BUT MOST OF THAT AIRPORT IMPROVEMENT LINE THIS YEAR IS ALLOCATED FOR SPECIFIC PROJECTS, AND SO THE FULL CASH BALANCE IS SHOWN HERE. YOU'LL ALSO SEE THAT POP UP WHEN WE HAVE THE GENERAL FUND DISCUSSION. YOU'LL SEE A CASH FORWARD ABOUT IN THE GENERAL FUND AS WELL. So to kick things off, we'll start with the electric fund, and I'll go through and present for each fund, and then I'll pause and allow department heads to come up and speak to their budget a little bit and kind of give you some of the high notes or the things that they want to make sure that you identify and stand out to you. And so for the electric... REVENUES, YOU'LL SEE HERE WE HAVE THE GRANT REVENUE COMING BACK IN, THE FEDERAL AND STATE GRANT. THIS IS FOR THE BUILD GRANT THAT WE RECEIVED, AND SO WE'RE EXPENSING COSTS TO THAT PROJECT THIS YEAR. WE'VE STARTED TO RECEIVE SOME REVENUES YOU'LL SEE IN THE 26 ACTUAL COLUMN. THERE'S SOME FEDERAL AND STATE DOLLARS ALREADY RECEIVED, AND I BELIEVE THE ANTICIPATION IS THAT THE GIST OF THIS, IF NOT ALL OF IT, WILL COME BACK IN IN 2026. Our collections electric number we revised. This is accommodating the new, the 5% increase that we incorporated for May 1st and then the increase for next year. This looks at the new agreements with Radiant and some other kind of large commercial vendors customers that we have as well. But our original expectations for the budget of the $39,995 anticipated some commercial retail that isn't happening to the full extent that we thought. We've talked about this a little bit before with empirical and some other things. So that was revised down and then the $4,909 for 26 is with the 5% increase. So it's kind of getting back to where we anticipated we would be originally on our revenue side. And then throughout the rest of this, you'll see we've got our connect fees, penalties. Those are the late fees if people don't pay on time. We see a spike of those throughout the summer when their bills are more expensive than the late fees are higher too. And so that is split across electric water and solid waste. And then we have, I'll point out the Connect fees, with our change of practice for the initiation fee, those Connect fees are increased as well. We have low assumptions here in the budget, but I anticipate by the end of the year we'll actually see higher than what the budget shows in our Connect fee lines. Next is electric additions. A few notable changes here. You'll see that in the material traffic light, that 5653 line, there's 667,400 in 2026. This is for the cost for the spruce signalization that's ongoing right now. We have $0 budget for next year as we anticipate that will be done. If we did run into something where it's not finished by the end of the year, we would adjust up the 2027 figure next year and it would just be whatever balance wasn't spent in 26 from that 667,400. The next line down, material streetlights, you'll see that we've diminished this from $450,000 down to $75,000. One of the items identified in cost savings is a delay or deferring our streetlight improvement projects that we were doing. That's a cost that we've captured in the budget to be able to kind of get it back up to a stronger cash balance. And so the streetlight improvement project has been on hold and will come back at a future point when we have a little more cash balance to be able to maneuver that. YOU'LL SEE THAT MATERIAL DISTRIBUTION CONTINUES TO INCREASE. THE COSTS, ONE OF THE MAIN UPTICKS FOR ELECTRIC IS A LOT OF THE EQUIPMENT, THE INFRASTRUCTURE AND SO THAT MATERIAL DISTRIBUTION LINE CONTINUES TO GO UP AS WE SEE PRICES GO UP ACROSS THE BOARD AND KIND OF SUPPLY AND DEMAND ISSUES COME INTO PLAY. YOU'LL SEE STORM SIRENS. WE CONTINUE TO IMPROVE AND REPLACE THE STORM SIRENS THROUGHOUT THE CITY. THEN YOU HAVE YOUR METERS ELECTRIC, 150,000 A YEAR IS TO ROTATE OUT OLD METERS AS WELL AS create our entire inventory of the remote meters that we are utilizing now. We still have some that aren't quite there yet that as we rotate off the oldest, we'll get to where they're all then remote and a little more efficient. And then new equipment SCADA at that $40,000 this year and next year, Jose will speak to that a little bit in his discussion. And then you'll see that our transformers continue to be a large capital line here in this budget as well, about one and a half million dollars each year. And I believe the timeline right now is about two years out for most of those large transformers that we're waiting on. And then their new equipment, other line, 200,026. They had, I think it was already been presented, a jet back truck and then a truck for the foreman. And then no equipment planned to be purchased next year. Next is electric production. This is where we have some staff salary and benefits come in for the staff that pertain to this department up in the top section. We have the repair substation. There's a few aging breakers and some upgrades to substation six planned for this year and next year. And they've delayed off some of the improvements they originally anticipated. So that number went from 375 for 26 down to 200,000 as they're postponing some of those repairs to try to have some cost savings in this year's budget. you'll see wholesale electric continues to go up as we diversify our our inventory of wholesale electric we mike and his team have navigated trying to diversify the city's portfolio make sure we're covered but the costs on wholesale electric universally across the country just continue to go up and so we'll continue to experience those those increases as well And then the state low interest loan program, I'll speak to that one for Karen's sake being new and just a refresher. This is the loan from Winter Storm URI we had a few years ago. And so this goes through 2031. The state re-amortizes the monthly payments every year based off of current interest rates. We get a pretty good interest rate on this loan, but we'll continue to pay it off at the tune of a little over a million dollars a year until the early part of 2031 is when that will end. Next, we have electric distribution. Here, pretty status quo, not a lot of change in the budget from what was originally anticipated. The tree trimming, you'll see that it's a drop in 27 versus 26. That's just due to the scheduled rotation and the different sizes of the areas that they have completed each year. But that's on par with our normal rotation of the kind of the three large areas. and then no other noteworthy items in that budget. Next is electric commercial. You'll see this and the trend will continue. Audit expense, you'll see in electric water and the general fund, our audit costs have gone down. This is what we anticipated when we switched to the KMAG version of our audit instead of the GAP and GASB versions. And so we've realized that savings. And so last year we put it at 65, assuming decreases, it's actually less than we originally anticipated as well. So we're seeing those cost savings come through. Banking credit card charges were up last year. That's due to higher percent rates on our credit card transactions and then just more and more electronic transactions occurring. The city pays the credit card transaction fees for anything in the office and then all the online ACH payments. If someone pays online with a credit card, they pay that. And that's something we may look down the road to switching how we handle those or which pay a price for that and which processes don't. MAINTENANCE CONTRACTS, YOU'LL SEE AN UPTICK. THE TYLER TECHNOLOGY SOFTWARE THAT WE UTILIZE ACROSS THE CITY FOR FINANCIALS AND HR, WE'VE BEEN PAYING OUT OF THE CIP DOLLARS THAT WERE ALLOCATED TO THAT PROJECT A FEW YEARS BACK, BUT THOSE WILL FINALIZE IN 2026. AND SO IN 2027, WE'RE BUDGETING IN ELECTRIC, WATER, SOLID WASTE, AND THE GERNAL FUND TO SPLIT THE COST OF THAT TYLER TECHNOLOGY'S ANNUAL COST. AND SO YOU'LL SEE THAT INCREASE IN 2027 IS PARTIALLY DUE TO THAT. THE REST OF THIS BUDGET IS FAIRLY SIMILAR. I'LL POINT OUT THE LINE NUMBER 7018, TRANSFER ADMINISTRATIVE OVERHEAD. THE ELECTRIC, WATER, AND SOLID WASTE FUNDS ALL PAY A TARGETED 80% COVERAGE FOR THE ADMINISTRATIVE PORTION OF THE GENERAL FUNDS, SO THE CITY MANAGER'S OFFICE, SERVICE AND FINANCE, THE HR DEPARTMENT, IT DEPARTMENT, THINGS THAT IF THEY WERE A STAND-ALONE UTILITY THEY WOULD HAVE TO THEN EMPLOY PEOPLE TO DO. And so our plan on this has been a 4% increase each year. And then every five years we recalibrate to assess if the 80% is still being covered. And then we uptick or downtick the transfer from those funds based on that. And so you'll see in 2026 and 27, those are just increasing by 4% over the past year. And we'll continue to do that through the ideally 2030. I do keep an eye on it throughout the five years so that if we get really out of whack, we can readjust sooner. But the plan is every five years on that admin overhead piece, we adjust it. And then you'll see that bottom line is $15,000 being transferred to the risk management fund, water and electric both transfer into that. And that covers small claims and things that occur outside of our insurance policy. The next is Electric Sundry. They've made cuts across the line a little bit in this fund. So consultant fee, engineering fees, and legal services, they've diminished the budget for each. Been able to reduce the scope of some of the things they're working on or just delaying projects. They've been able to reduce those budget lines as well to capture some savings. And then you'll see we've decreased the amount in the refund customer account line. This historically has been where we refund customers who overpay or if we refund the back of deposit. But with us moving away from deposits on file, that amount is diminished. We'll still have some of these when instances occur that people overpay or their final bill, they had a credit and we return money to them. But without the deposits on file, that will be significantly reduced. and then you have here the transfer other funds this is where we've been repaying the amounts the other funds of the city that helped with the wheatland settlement amount and we were going to we originally had it planned to do a 2026 and 2027 we've delayed 2026 and so in 2027 we'll repay the solid waste fund and then there will be a 500 000 balance remaining due to the water reserve for 2028 and that will finish all of the repayment of those You'll see in system acquisition, that's acquisition of the KSU property, then K156 underground conversion that they're doing as well. And then that 7031 line, similar to the administrative overhead, this is the 5% franchise fee that electric, water, and solid waste also pay. And so based off the past year's revenue, final revenues, they transfer 5% of that revenue figure. THROUGHOUT THE FOLLOWING YEAR TO THE GENERAL FUND AS THE FRANCHISE FEES, SIMILAR TO WHAT OTHER FRANCHISE FEES WE COLLECT FROM COX AND PIONEER AND OTHER UTILITIES. NEXT IS ELECTRIC DEBT SERVICE. HERE WE HAVE THEIR ONGOING DEBT SERVICE GOES THROUGH 2039, SO THEY'LL CONTINUE TO PAY THAT THROUGH THE NEXT WHILE, BUT WE DON'T HAVE ANY ANTICIPATED GEO BOND DEBT ISSUANCES FOR ELECTRIC AT THIS TIME THAT WERE INCLUDED IN THIS BUDGET. AND SO FOR THE ELECTRIC FUND, THEIR STARTING CASH BALANCE FOR THIS YEAR IS $683,000. AND WITH THE 26 AND 27 PROJECTIONS, THEY'LL END 27 WITH A BALANCE OF $2,635,061. AND SO IT'S UPTICKING. WE'VE, LIKE I SAID, REDUCED SOME BUDGET LINES. WE'RE PUSHING OUT SOME PROJECTS. THE ELECTRIC FUND WENT THROUGH AND IDENTIFIED WHERE THEY COULD CUT TO MAKE SURE WE GET THAT CASH BALANCE BACK UP. We've held off on the repayment of the 500,000 to solid waste and the water reserve. We've also held off transfers to the electric reserve for the next two years, let that build up. But there is the next fund you'll see the electric reserve is $5 million in cash. So electric has that to lean back on as well as they, if something came up that there was a cost that surprised us, They do have that $5 million cash reserve balance to help weather the storm, but the intent would be to not draw on that. If possible, build the fund back up over the next year or two, and then return to transferring some of the revenues over to that electric reserve to continue to build it up as the backup as well. Any questions on electric? All right, I'll kick it over to Jose to talk through the high notes of the things he wants to make sure you take away from this.

Good afternoon, commissioners. A couple of the projects that I would like to highlight that are going to be our primary focus for 2026 going into 2027. The first one is the grant project. This project is one of the largest infrastructure investment in our electric department. And it's designed to replace aging equipment before it fails. That includes replacing approximately five miles of underground infrastructure that exceeded its service life. The primary focus of this area is going to be the north side of town, typically going to be north of Mary. This also includes replacing 131 pad-mount transformers that are 30 years or older and are likely to fail. This also includes significant upgrades to substation six, which is located at the intersection of campus and Mary. This substation serves the north and the northeast part of town. Upgrades to this facility will strengthen our system performance, improve voltage stability, and reduce unnecessary outages. The second project is the Reject Poll Program. This project addresses deteriorated utility poles that were identified through a citywide inspection process. The city was divided into six districts. A third party contractor was hired to test one district each year from 2019 all the way to 2025. We paused in 2026 so we can catch up on some of those reject poles so we can start replacing them. Between those six years, more than 7,000 wood poles were inspected. A total of 540 poles out of those 7,000 were classified as rejects and scheduled for replacement. In January 1st of 2026, we still have 230 poles remaining to be replaced from that list. And as of today, there is a total of 204 poles that remain, and our goal this year is to reduce that number to zero. And our intent is to go back next year for BIA so we can have them come back and retest, starting with District 1 again, and then so on and so on. Replacing these poles improves public safety, protects utility infrastructure, and enhances overall system reliability. The last project that I would like to highlight is in 2027, which is the SCADA system upgrade. A SCADA system is a supervisor control and data acquisition. It's a combination of software and hardware that allows operators to monitor, control, gather real-time information from the field. This allows utilities to detect anomalies early, prevent equipment failures, reduce human errors, and make smarter data-driven decisions. Our current SCADA system, while is functional, it's fragmented, outdated, and does not meet the modern cybersecurity standards. So this makes it vulnerable for cyber attacks that can cripple our infrastructure, our utilities infrastructure. We currently are constructing a dedicated SCADA control room at the Utilities Service Center, as Jared mentioned. This will serve the water, wastewater, and the electric division. Staff is conducting early research to identify a modern SCADA platform. that will improve operational efficiency, eliminate the risk of cyber task, and replace obsolete technology. And with that, I'll be happy to answer any questions.

Thank you, Jose.

All right, we'll move on to Fund 503. That's page 10, if you're following along. This is a utility security deposit with us refunding the majority of our residential and commercial utility deposits. Right now, there's one customer, Radiant Solutions, that we have deposits on file. They have a special agreement for their electric usage. And so that dictates the deposits they will continue to, as they increase their load, they'll increase the deposit amount. And so as they stay on file, we will continue to have their deposit held by the city. They do accumulate interest off of this, dictated by the KCC every year what the interest rate is, and the city pays out that interest to them annually. And so right now, I think the 350,000 is that number. I don't anticipate that to change unless we have another special use customer come on or special negotiated contract similar to Radiant. Otherwise that deposit will stay on file until their account is closed and we won't see any changes to this fund. Moving on to water, we'll talk about water revenue a little bit. You'll see the collections for the sewer and collections for water continue to go up each year. We currently have the percent increase per year that we're going up, maybe at 6% for sewer and 3% for water. We budgeted conservatively based off of previous revenues and then those amounts and anticipate those that can keep going up throughout the next few years. You'll see in line 3331, repayment developer in 2025, there was about a million and a half dollars received there. That was for the DFA agreement where we renegotiated with the DFA for their water usage and then the land use. And so that was kind of a one-time revenue source coming in and there's nothing anticipated in 26 or 27 in that line. At the bottom, you'll see the transfer electric, 4,005. The water fund was that 500,000 last year, replenish the water fund in full for the repayment from electric. And so there aren't any more revenues from the electric fund going into 26 or 27. Next we have water additions. This is for the infrastructure improvements that the water department makes. You'll see it's mostly material for pumping water structures, things like that. I'll point out that in 2025 on the 5667 material structures, this was for well number 32, kind of wrapped up that project and there's no anticipated cost in 26 or 27 to that project being done. And then the new equipment other for $97,526. This is for the generator for the temporary PD. And so it's not included in the 26 revised. And so one addition I'll need to go make is adding that $97,500 to the water budget for the revised 26 because that was approved by the commission and wasn't captured when I put the budgets together. So just a note on that line there. Water production is next. Here we have, similar to electric, the salary and benefits for the employees that service the production. The main cost in this org is the purchase water. You'll see this is our contractual purchase water with Wheatland, which Fred can correct me if I'm wrong, but I believe it's three million gallons a day that we purchase from Wheatland that's treated. Then they have their repair lines, so as we have water main breaks, things like that, they go out and they repair them. That comes out of this portion of the budget here. And then their utilities electric line, this is the last couple years we've added this, where the water department for all the wells and pump stations, the electric usage is being transferred from water fund to the electric fund to account for the electric usage there. We've done that with the wastewater treatment plant for years, but weren't doing it with water and that's an identification of a revenue we should be capturing for the electric fund. And so that's around 900,000 this year and next year anticipated to stay similar. And then you'll see on the line 6143 on page 14, the maintenance water tower. This is for the contractual water tower maintenance agreements that we have in place, which is just around $250,000 a year where they come in, the third party comes in and services the water tower and make sure things are all working as they should be. Next, we have water distribution. I'll point out one line that always stands out to me and catches my eye is the 5224 vending machine fees. In water distribution, it's kind of odd. There'd be wet vending machines, but this is for our bulk water sales. And so we have a credit card processor and things. So when those bulk water sales go through, that's what that line comes out of. learn that mostly repair, making things stay up to date, keeping things up to par and the budget is very, very similar in 26 revised as it was in 26 original and 27 doesn't change much either. And then the last line 6520 on page 16, there's 310,000 budget for 27 to replace a backhoe that is getting a little older for the water department. THE NEXT IS WATER COMMERCIAL. POINT OUT AGAIN THE AUDIT EXPENSE GOING DOWN. WE HAVE OUR CONTRACTED UTILITY BILL, THE 33 AND 35,000 A YEAR. THIS COMES OUT OF ELECTRIC, WATER, SOLID WASTE, AND DRAINAGE. WE'VE SEEN THESE COSTS CONTINUE TO RISE. THE PRINTING AND MAILING OF OUR UTILITY BILLS And so one discussion we had during the budget meetings was what can be done to reduce this? There are companies that have gone exclusively to an email or an electric only bill and reducing their postage and mailing. We do experience issues pretty regularly with folks saying they don't get their bill in a timely fashion. THEY BLAME US, WE BLAME THE POSTAL SERVICE, POSTAL SERVICE PROBABLY BLAMES THE BILL PRINTER. SO I DON'T KNOW WHERE EXACTLY THAT ISSUE LIES, BUT I CAN TELL YOU THAT AN EMAIL COMES A LOT FASTER THAN ANY OF THAT BILL PROCESS. AND SO AS WE LOOK TO THE FUTURE, I DO THINK THAT'S ONE AREA WE'LL PROBABLY LOOK TO MAKE A CHANGE ON AT SOME POINT. SIMILAR TO ALL THE OTHER CHANGES WE'VE MADE WITH UTILITY BILLING, IT'S GOING TO RUFFLE FEATHERS, BUT I DO THINK FOR PRODUCTIVITY, IT'S PRETTY SEAMLESS TO GET AN EMAIL WITHIN MINUTES OF WHEN WE PROCESS BILLING RATHER THAN A WEEK LATER.

Could that be a possible opt-in type of thing? It's currently an opt-in.

So we do have customers, and one of our goals for the year is to increase those that receive an e-bill. But as an opt-in, we have about 3,000 accounts that utilize the e-billing, and the other 7,000 are on paper billing. But I think if it's a forced thing, it would be productive, but there's going to be some pain points to that if we force it. SO DISCUSSION FOR ANOTHER DAY, BUT SOMETHING I THINK DOWN THE ROAD IS LIKELY TO OCCUR.

WELL, THAT'S WHY I WAS JUST ASKING IF WE COULD KIND OF MAYBE PROMOTE IT AS AN OPT-END THING.

YEP, AND WE DO. SO THAT'S ONE OF OUR GOALS.

I KNOW THE OTHER GENERATION LIKES THE PAPER AND GETTING THE BILL IN THE MAIL, BUT YOUNGER PEOPLE LIKE US, YOU KNOW.

Yeah, definitely differences in our customer base of preference there. And it's not always following the older and younger lines. We see some that are very much want the paper regardless of age or want an email regardless of age. But they're very set in what they prefer. I do think they're... There's a cost savings to the city as well as an efficiency savings, but there's a downside of the customer service of if someone really wants the paper, we're forcing it, you take away that elective option. So we are promoting it more in our office. We're talking to customers and working with our staff to make sure that they're being informed of the option and trying to promote increasing the number of counts that we see on electric e-bill. But it's a work in progress, but we'll see what happens on the road. But it's a conversation point we'll probably have every year in the budget cycle. Okay. Here you'll see maintenance contracts for 27 is increasing as well with that TylerTech portion allotted to them. And then I'll just point out here you have the transfer admin overhead and transfer for risk management similar to electric as well. For Water Sundry, you'll see their engineering fees. Those are $250,000 a year. I'll let Fred speak to that a little bit as they talk about their lead and copper inventories. And then the transfer utility franchise, as the revenues continue to go up on the sewer and water side with the 6% and 3% rate adjustments, you'll continue to see that utility franchise fee increase as well for water being sent over to the general fund. And then for water debt service, their 26 amount is based off of their current debt service. And then 27, you'll see an uptick. Anticipation, the budget is built off of anticipated about $12 million bond to cover water reuse costs. The city's piece of the water use project that we've been talking about for a few years, that timeline is coming due. Fred will speak to that as well. And so we'll bond that this year. But also talking about the headworks facility, ON THE CONVERSATION TABLE HAS BEEN THE SOUTHEAST INTERCEPTOR, BUT AS FRED'S POINTED OUT, IF YOU HAVE AN INTERCEPTOR, THEY CAN BRING MORE DOWN TO THE SEWAGE PLANT, BUT THE HEADWORKS CAN'T FACILITATE THAT. IT'S REALLY NOT GOING TO DO MUCH GOOD TO HAVE THE INTERCEPTOR IN PLACE. AND SO LOOKING AT IMPROVING THE HEADWORK FACILITY AND EXPANDING THAT, THAT $12 MILLION G.O. BOND OVER A 10-YEAR DEBT SERVICE WOULD BE ABOUT $1.4 MILLION A YEAR. SO THAT'S THE UPTICK YOU SEE IN 27. CASTING FORWARD, THE fund has a drop off of their debt service in 2027 of about $290,000, about $30,000 in 2028, about $230,000 in 2030, and $750,000 in 2033, and then $560,000 all the way to 2044. And so with that increased 1.4, there would be a pain point there for quite some time and not a drop off of the stair stepping of the geo bond to really accommodate the relief of that. And so you would likely see a need for the continuation of those six, three, four, 5% increases to the rates in perpetuity, or at least for the next, finishing out the 10 years of that debt service in order to accommodate such. And then that's assuming there's no other general obligation bond issuances for other water projects along the way. And they do have anticipated plans for kind of overhauling and replacing some of their water mains and sewer mains. In the grand scheme of things, without continued kind of rate adjustments, it's unlikely you'd be able to knock off all of these projects, but identifying the key needs and Headworks being kind of the top of the list of before any other infrastructure's done, or we talk about Southeast Interceptor, Headworks is one we'd probably want to make sure we talk about. And I'll let Fred correct me on anything I said that was wrong there when he gets up here. I'll take it over, Fred.

Oh, I'm sorry. Are you still wrapping up, Jared? I was going through wastewater. That's okay. Go.

You're good.

I'll just touch base for a second. And it's northeast interceptor. We haven't even thought about going southeast. All right. I just wanted to talk real briefly since we were just visiting about engineering. You know, sometimes we have some small engineering expenses that help us make plans to hopefully provide a good value down the road. So one issue that cities, all cities in the United States are dealing with is lead line remediation. We've visited with the governing body a couple times in the past about that. We've developed an inventory. Next year, we'll actually be developing the replacement plan. And so that engineering will be taking place this year and into next year working on that plan. That plan does a couple things. It gets us in a good position if there's any grant funding or any revolving loans that might make repayment a little bit more attractive. It also helps us work with customers because if we remember on lead service lines we have the city's portion of the service line that we have to address but we also have a customer side portion and so this helps us plan for that. The reason I think it's important just to in your own mindsets is as we develop this plan and we look at our lead service line inventory, we hope that we can pair that with some of our water main replacement projects. And if we have an area that has a high intensity replacement, although we don't have very many lead lines, we have about 225 galvanized lines, which unfortunately fall under the same category. If we could replace a high intensity area that has galvanized lines and while we're there, replace the water main, we think that would be a good project to proceed with and reduce the amount of disruption that we'd have on customers. So that's all I wanted to say about that. We have about $29 million worth of projects that we're working on right now. The water reuse project is largely grant funded, but there's still some exposure for the city on that. We've reconstructed two wells. In the last couple of years, we're finishing up on the second well as we speak. We're constructing a new water tower, which is now starting to have a presence on the skyline, which is a little interesting to get used to. And then the upgrades to the treatment facilities with the disinfection and polymer system. So the next year or so is going to be another planning cycle for future projects. Thank you. Thank you. Thank you.

Next we have the water and sewage. And so we start with the wastewater sewer maintenance division. I'll point out a couple lines here that sometimes get confused. In 5274 you have contracted contractors. This is typically for sewer line cleaning. This previously was in the wastewater treatment budget line. We're breaking it out here since it more applies to sewer maintenance. Then you have 5278 is contracted backup prevention program. And then the line below that is contracted BUPP, which is also backup prevention program. So the top one is for the city's investment into smart covers and other infrastructure that helps to identify the issues we have with kind of the excess flows that come into the sewage system during high water events or rain events. And then the second line, the contracted BUPP, is the amounts that we pay out to citizens that are eligible in the eligible areas for getting a backflow preventer installed in their home. We saw an uptick for a few years. A lot of the homes that are in the designated area took advantage of the program, and so we've seen that being reduced. And so that budget line is coming down from the original 60,000. TO 20,000 EACH YEAR. WE ANTICIPATE WE'LL CONTINUE TO SEE SOME OF THOSE COME THROUGH, BUT IT'S NOT AN ENDLESS STREAM OF HOUSES. THE AREA IS ONLY SO LARGE AND THERE'S ONLY SO MANY HOUSES, AND SO ONCE THEY'VE REALLY ALL TAKEN ADVANTAGE OF THAT, THEN THAT BUDGET LINE WILL GO AWAY. HERE WE HAVE ALSO REPAIR SEWER MANES. THEY DO THE MANHOLL REPLACEMENTS AND RENOVATIONS. THOSE COME OUT OF THIS BUDGET HERE AS WELL. AND THEN FOR MATERIALS, MANHOLES, MORE OF THE RINGS, THE LIDS, THE RISERS, THE ACTUAL INFRASTRUCTURE EQUIPMENT THAT GOES INTO THEM. And then on the second page for 6520 for new equipment, they plan to replace a service truck and then upgrade their camera inspection software for when they run the lines with their camera. And then we have the wastewater sewage plant. This is for the actual facility itself and their budget. You'll notice the decrease in the contracted services line 5276 here is because we moved that sewer cleaning over to the sewer maintenance budget instead of this one. And then you look in the repair equipment, it continues to be a high cost line. We're continuing to replace and rebuild the clarifiers and then camera repair and some other infrastructure. The clarifiers likely will continue to be an ongoing expense each year as we rotate out the clarifies and rebuild them throughout the years. On the second page, here you'll see a utilities electric, similar to what I indicated before with the electric costs paid to our electric fund. This is for the utilities used for the wastewater treatment plant itself. And then their new equipment line at the bottom, 6520 has 535,000 in 2026 and then 235,027. We have a surface aerator gearbox that we've been waiting on that's been encumbered from last year, so that's a little under 200,000, and then a step screen in this year, and a gearbox for the oxidation ditch in 2026 as well, and then looking to replace a loader in 2027. FOR THE WATER AND SEWAGE FUND, THE STARTING CASH BALANCE IS 8.3, A LITTLE UNDER 8.4 MILLION FOR THIS YEAR. AN ANTICIPATION AFTER THE END OF 26 AND 27 WOULD BE 6.5. A CHUNK OF THAT IS THAT INCREASED DEBT SERVICE, ABOUT 1.4 MILLION, LIKE I SAID, OF AN INCREASED DEBT SERVICE. YOU'LL CONTINUE TO SEE THAT LEVEL OFF AS THE RATES GO UP THAT WOULD GET CLOSER TO KIND OF AN EQUAL NET ZERO, BUT IF THE RATES THEN TAPER OFF AND THEY'RE NOT INCREASING, YOU WOULD THEN SEE KIND OF A FLAT LINE AND AS OUR COSTS CONTINUE TO INCREASE EACH YEAR, YOU WOULD SEE AN ESCALATION WHERE OUR EXPENSES GO OVER OUR REVENUES. AND SO ONGOING CONVERSATION WHEN WE GET TO THE END OF THE SCHEDULE OF OUR CURRENT RATE STRUCTURE, DOING ANOTHER COST OF SERVICE STUDY AND IDENTIFYING FUTURE, LIKE FRED SAID, AS THEY GO INTO THE PLANNING PHASE AND HAVE THEIR TEN YEARS OF PROJECT SCOPES OUTLINED, we can look at what would need to come in as a revenue side to make sure that we can continue to increase infrastructure and improve things so that we don't have issues down the road. Next, we have the sewage repair and replacement. A portion of the sewage revenues and the same in the next fund, a portion of the water revenues come to these reserves. This is kind of the rainy day funds for the sewage and water funds. In sewage, we have a little over a million dollars held right now, anticipate around $150,000 coming in each year. So our expectation is by the end of 27 to have about $1.4 million in the sewage reserve. And then the water reserve current balance of cash at the beginning of this year was 2.9. We do anticipate some land purchases, some expenditures there out of this fund for expansion and such. And so that will draw down the cash, but then with the increase, the revenues coming in, we anticipate ending cash balance of 27, about 2.6 million. And there will be in 2028 anticipated at this point that $500,000 from electric coming back into this fund as well. And then water reuse. I'll let Fred speak to the logistics of this fund, but you'll see that in 26, we have some expenses anticipated as the project continues to move forward with bond proceeds coming in this year of the city's allocated piece of what would be necessary for us to continue the project and cover the city's obligation. And this year having some capital improvement costs and engineering fees. And then 2027, we're really showing the balance of the project remaining. In reality, it's not going to end in 27, so that'll be reduced down. And then 28, we'll have some in 24. I DON'T HAVE SOME AS WE FINISH THIS OUT. BUT THIS IS TO SHOW KIND OF THE ANTICIPATED REMAINING AMOUNT LEFT IN THE PROJECT AND THEN TO MAKE SURE WE HAVE AN AUTHORITY FOR THAT BUDGET IN EACH YEAR. SO WE'LL KIND OF UNDER BUDGET OR UNDER EXPECT THE CURRENT YEAR TO MAKE SURE THAT WE OVER BUDGET FOR AUTHORIZATION PURPOSES WITH THE STATE AND DON'T RUN INTO ISSUES IF THINGS MOVE AHEAD OF TIMELINE AND WE GET THINGS DONE FASTER THAN WE ANTICIPATE. ASKING IT FOR WATER. I'LL KICK IT OVER TO FRED AGAIN TO TALK ABOUT WATER REUSE PROJECT A LITTLE BIT TO KIND OF UPDATE ON WHERE WE STAND AND WHAT'S GOING ON IN THE NEXT YEAR, TOO.

The design for the project has been completed. It's been submitted to KDHE. We've gotten our preliminary comments from KDHE back last week. And so now we work on addressing those, getting those things figured out from a permitting standpoint. that will get the project permitted to be constructed. We also are working on the asset purchase agreement for the Wheatland portion of the pipeline that we intend to purchase and utilize rather than building new pipe over existing pipe. We've been working with them on that. We have a draft agreement that's been submitted to EPA. the purpose of submitting that getting approval on the purchase from EPA is that we intend to use the the funds that we expend for that asset purchase as part of our matching requirement for the grant and so we're working on that we're working on a transition plan if we lend as well to to once that once that has been exchanged that we have a plan on how we're we're going to be providing water when they need it making sure our locates are turned over to the correct agency and all the minutia that comes along with it. And while we're working on all that, hopefully we'll be going out to bid and construction and getting the project completed, which I'll be glad to have done. And then we will have, you know, we do have a effluent agreement with Wheatland Electric as well that will provide some revenue into the fund. And then it's gonna be a few years of getting our field for operating a utility based on reuse. There are not a lot of examples. So it's gonna be new territory for all of us. And I hope it's a good learning experience.

Great, thank you. Thank you, Fred. Next, we're on to fund 541, which is drainage. Here the last few years, our expenses have been less than revenues, and so the fund's been building up a cash balance. Starting the year was about 1.1. In 26, we anticipate the costs for the Clarion Park drainage project that's been presented to the commission to occur. And so you'll see that 798,000 in the 26 line under line 5290. That's one time cost to get that project done and improve the drainage in that area. And so we've reduced, we had originally talked about increasing the amount of the contracted contractors to kind of go fix some of the storm drains and things like that around town. That'll be on hold for a minute while we knock out this Clarendon Park drainage project. AND THEN IN FUTURE YEARS WE'LL CONTINUE TO KNOCK OFF THOSE IMPROVEMENTS TO THE STORM DRAINS THROUGHOUT THE CITY AS WE HAVE THE FUNDS BUILT BACK UP. BUT OUR ANTICIPATED CASH BALANCE AT THE END OF 27 WITH THAT BIG PROJECT IS $586,000. SO ABOUT HALF OF WHAT THE CASH IS AT THIS POINT. BUT WE ANTICIPATE A FEW YEARS OF CONTINUED REVENUES AND WE'LL BE ABLE TO BUILD BACK UP TO KNOCKING OUT SOME OTHER PROJECTS. NEXT WE HAVE THE SOLID WASTE FUND. TYLER WILL SPEAK A LITTLE BIT TO THE COLLECTION SOLID WASTE REVENUE LINE, BUT WE SEE THAT WE'VE ADJUSTED REVENUES WITH THEIR RATES THAT WE'VE ADJUSTED. AND THEN YOU'LL SEE IN 2027 THAT $500,000 REIMBURSEMENT FROM THE ELECTRIC FUND IN LINE 4005 WILL REPLENISH IN FULL THE SOLID WASTE DEPARTMENT. WE HOLD OFF AT THE END OF THE YEARS WHEN WE PROCESS THOSE TRANSACTIONS, SO SHOULD WE GET TO THE END OF 2027 AND THE ELECTRIC FUND BALANCE ISN'T IN A PLACE WHERE WE WANT TO DO THAT TRANSFER, WE WOULD DEFER IT. BUT OUR EXPECTATION AT THIS POINT IS THAT WE'LL GO AHEAD AND DO THAT THEN. AND THEN YOU'LL SEE THAT IN 26 ACTUALS FOR THE TRANSFER OTHER 4032 LINE, THERE WAS A REIMBURSEMENT. THERE WERE SOME COSTS IN 2025 OUT OF THIS FUND FOR THEIR GEO BOND PROJECT COSTS THAT WERE CAPTURED BEFORE THE GEO BOND DOLLARS ARRIVED IN JANUARY OF 2026. AND SO THERE WERE SOME FUNDS REIMBURSED TO THE SOLID WASTE FUND TO REIMBURSE THOSE COSTS THAT OCCURRED BEFORE THE GEO BOND DOLLARS GOT HERE. Next we have trash collection. So this is the main costs and salaried benefits for all those that run the trash trucks and handle our solid waste collections. You'll see that we have contracted contractor line, 80,000 in 26 and 27. This is for tree trimming, similar to the other departments that experience tree trimming. It's on a rotation and isn't always the same number. AND THEN CONTRACTED GIS, THIS IS THE AMOUNT THAT WE PAY TO THE COUNTY. THE CITY SPLITS THE PORTION OF WHAT THE CITY PAYS FOR THE GIS DEPARTMENT, THE COUNTY RUNS, COMES OUT OF ELECTRIC WATER AND SOLID WASTE. SO THAT COST IS SPLIT BETWEEN THE THREE, AND THAT'S DICTATED BY THE COUNTY ON WHAT THAT BUDGET IS EACH YEAR. You'll continue to see landfill charges is going up. In 2025, they had a rate increase. I believe we're expecting maybe at the end of this year, we'll know if 27 is going to have another rate increase. But those landfill charges as we haul more and more solids out there just continue to increase for us as well. And then similar to other departments, you'll see the maintenance contract line going up. A portion of that is for the Tyler Tech, and then they've identified some other maintenance agreements that they have in place that they've put in that line as well. FOR REPAIR VEHICLE, ON THE NEXT PAGE, WE ARE HOPING, AND RIGHT NOW WE'RE NOT BUDGETING A DECREASE OVER OUR ORIGINAL BUDGET, BUT IF YOU LOOK AT 25, THE ACTUAL COST WAS AROUND $265,000. THE HOPE WOULD BE THAT REPLACING SOME OF OUR AGING TRUCKS WITH THE NEW ONES WE'RE GETTING FROM THE GEO BOND DOLLARS, ESPECIALLY THE CNG or the natural gas trucks. They're a significant pain point of the repairs and so our hope is that the cost for the repair trucks goes down as we have a newer fleet and trucks that are a little simpler to repair and maintain ourselves. Gas, oil, diesel, this is one line that is throughout the budget process. We'll continue to adjust as we look. Probably late June, early July, we'll make an adjustment of that the wrong way. It'll end up costing more. We'll increase the budget for each of those, but we're waiting as long as possible to have a better feel for what the end of 26 and 27 rates are actually going to be with fuel costs and the conflict in Iran. New equipment vehicle, I'll let Tyler speak to their plan for the 26 vehicles and 27 vehicles that they have and the replacing of their trucks. And then you'll see that in the 65-75 lease payment vehicle line, the 25,800 was the final lease payments for the truck that they bought outright this year. And so that then is a reduced budget for 26 and a zero budget for 27 as we don't have any other leased vehicles that they'll be paying out of that line. And then new for the solid waste department are the cost for interest on bonds on the very bottom. And then the next page, their principal on bonds is their debt service for the geo bond that they did issue. And that's a five-year debt service. And then they also have the transfer admin overhead and transfer utility franchise to finish things out just like the other utilities. Next is solid waste recycling. This is for the operational costs of the recycling trucks and the equipment that they need to conduct the recycling. The staffing salary benefits are all incorporated in the solid waste, the first one we went through for the trash collection. So not a lot changing there, pretty similar to past years and pretty minimal for the amount of recycling that we collect. similar story to household hazardous waste. There are some small costs for the remediation of the household hazardous waste that we receive. And so the contracted contractors line here is what we pay to get rid of the supplies that we receive from citizens. And they're working right now to institute the collections of the fees for out of county residents that are out of county folks that bring HOUSER JUST WASTE IN, AND WE'RE PUTTING IN A CASHIERING SYSTEM OUT THERE SO THEY CAN START COLLECTING THOSE REVENUES AND HAVE SOME OF THIS OFFSET BY THOSE COLLECTIONS, COLLECTED AMOUNTS. AND THEN THE LAST PART FOR SOLID WASTE IS THE FLEET DEPARTMENT. YOU HAVE THE SELLING BENEFITS OF THE FLEET STAFF, AND THEN THEIR TOOLS, THEIR EQUIPMENT, THEIR TRAINING AND TRAVEL, EVERYTHING ELSE THEY WOULD NEED TO RUN THEIR SHOP. BUT NOTHING REALLY OUTSIDE OF STATUS QUO HERE, PRETTY SIMILAR TO PAST YEARS, AND NO ANTICIPATED EQUIPMENT SPECIFICALLY FOR FLEET. THE STARTING BALANCE OF THE FUND IS ABOUT ONE AND A HALF MILLION DOLLARS. AFTER 26 AND 27, WE EXPECT TO BE RIGHT UNDER $500,000. WE DO, WE TALKED ABOUT LAST YEAR, THERE WOULD BE A DIP DOWN. THE REVENUES ARE COMING IN AND WE'RE INCREASING THEM. WE DID A BIG JUMP IN YEAR ONE AND THEN THEY'LL CONTINUE TO INCREASE YEAR TWO, THREE, FOUR, FIVE. BUT OUR DEBT SERVICE, WE WOULD FEEL SOME PAIN RIGHT AWAY. AND THEN AS THE REVENUES CONTINUE TO UPTICK, THIS WILL LEVEL OUT AND WE'LL CONTINUE TO SEE THAT FUND BALANCE GO BACK UP IN THE NEXT FEW YEARS. And with our conservative budgeting, I don't expect it actually to end up right under $500,000. It'll probably be more than that. But we expect the next couple of years to see a turnaround on that. And with that, I will turn it over to Tyler to speak through his highlights on solid waste.

Good afternoon, Mayor and Commissioners. Thank you, Jared. I'll just hit on a few things. That first item was the solid waste revenue. So back in 2025, we had our rate study completed, and with that, we implemented the rate changes in January 1st of 2026. We did deduct that. We just aren't seeing that anticipated revenue coming in with the two-and-a-half-month data that we had when we did this 2026 budget revision. So with that $500,000 deduction, it's leaving us right at $5 million for the solid waste revenue. And then for 2027, we have $5,137,500. Hopefully throughout the year, we'll see those revenues get up to where we expect. With the other one Jared kind of hit on, the maintenance contract account, we did add that. Previously we had any kind of maintenance contracts coming out of contracted contractors account. One of them is our route software that all of our solid waste trucks use daily for routing and reporting and such. change that we added that account to track that better and then also um have the 67 000 for the tyler tech software that split up through a few different departments for the financial software one other account that we added just to keep track of a little better was a janitorial account that was also previously coming out of the contracted contractor account and we reduced that by twenty thousand dollars just to reflect the change that we made with adding those accounts lastly new vehicle and equipment just a quick update on the you know the recent geo bond that jared mentioned that was to purchase five new collection trucks replace the cng trucks it was also for building upgrades and a new baler and then also a service truck for the fleet department We actually received one truck out of the fight last week, so that'll be getting into play here real soon. And then the other four trucks we're anticipating on seeing delivery August and then just into the first part of next year on receiving the remainder of those. And with that, you know, we work with Public Works and Utilities on a vehicle replacement plan. This is like a 35-plus year plan on replacing our vehicles. As of today, you know, we have 17 trucks and solid waste collection, and within the last five years, we've replaced 11 of those. on a good track i think to replacing some of these aging trucks and getting getting some cngs out of the fleet as well i will add that you know with that geo bond there is some funds remaining part of that was the building upgrades we are getting pricing right now to look at a kind of a lean two three-sided building to help move some material and things where that second baler got in place. It was already a tight area, so we're looking at moving things around. It also provides some coverage for our trash trucks to get out of the elements in the winter. With that, I'm happy to answer any questions you might have.

Thank you. Good job. ALL RIGHT, NEXT FUND IS THE AIRPORT FUND, 561. I'LL POINT OUT THE TOP PORTION OF THIS IS THE REVENUES, AND THEN THE EXPENSES START ABOUT MIDWAY DOWN THE PAGE. AND THE OPERATIONAL REVENUES THAT THE AIRPORT EXPERIENCES ARE PRETTY ON PAR WITH 26 AND 27 IN LINE WITH WHAT WE ORIGINALLY BUDGETED, AS WELL AS 25 ACTUALS. I'LL POINT OUT THAT WHEN IT COMES TO THE ALLOCATION OF THE PROPERTY TAX, WE PRETTY MUCH TAKE OUR PIE OF PROPERTY TAX ALLOCATION. WE OUTLOT WHAT THE DEBT SERVICE FUND WILL NEED AND THEN THE AIRPORT FUND. AND SO THE DELTA WILL BE THE, WHEN WE COME TO HAVE CONVERSATIONS ABOUT THE GENERAL FUND, THE WE'RE OFF THIS AMOUNT IS REALLY KIND OF A GENERAL FUND DISCUSSION TO SIMPLIFY THE DISCUSSION. BUT REALLY, AIRPORT IS IN PLAY AS WELL IN THAT CONVERSATION. And so the 2.4 million identified here as the ad form tax for the 2077 amount is the delta figure that to make the budget as presented work to that delta zero with that $600,000 cash forward, we would need to allot $2.4 million of our property tax allocation to the airport. So that number may adjust as we get the final valuations from the county by the mid-June. IF VALUATIONS ARE HIGHER OR LOWER THAN WE ANTICIPATED, THAT WILL GO UP OR DOWN, OR THE TOTAL MILL WILL GO UP OR DOWN, AND SO THAT PIECE OF THE PIBE WILL SHRINK PROPORTIONATELY OR INCREASE PROPORTIONATELY DEPENDING ON WHAT THAT FINAL VALUATION OR THAT EARLY ESTIMATION EVALUATION LOOKS LIKE. AND THEN ROCHELLE HAS A BREAKDOWN IN THE SUPPLEMENTAL DOCUMENTATION OF ALL THE DIFFERENT LEASE AGREEMENTS AND THINGS SHE HAS IN PLACE THAT GENERATE HOW SHE COMES UP WITH THESE NUMBERS FOR REVENUE, SO THAT'S A GREAT DOCUMENT TO LOOK AT IF YOU'RE KIND OF WONDERING WHAT THESE ARE AND WHERE THEY COME FROM. When you get into the staffing piece, you've got salary and benefits for the airport staff. One of the things we saw the last few years was as they were building up full staffing, we would budget for full staff, but then when they weren't fully staffed, we would have extra cash in the following budget year than we anticipated because we didn't spend it all on staffing. Where they've really under full operation as intended now, there's not a lot of vacancy savings in the airport fund. And so we were pinballing a few years kind of back and forth the extra cash and then we'd under budget and we'd over budget. We're seeing a much more steady line now with the staffing really at full spread there. And so we don't anticipate it to pinball necessarily as much and kind of the full pain will be experienced over the next few years in continuity. You'll see in their advertising and hiring line on page 37, 5206, it's 34,826 and 37,000 next year. The majority of that, the largest share of that is for marketing for the airport, for flights and things. And then they also have hiring and RFQs and RFPs that they put out as well. THE REPAIRS BUILDINGS LINE, ABOUT $20,000 EACH YEAR. THIS TAKES CARE OF ALL THE HANGERS AND THE SHOPS, THE TERMINAL BUILDING, ANYTHING THAT GOES WRONG, THEY'RE TAKING CARE OF THE BUILDING. SO THAT $20,000, THEY STRETCH IT AS FAR AS THEY CAN, BUT WHEN SOMETHING GOES WRONG A LOT OF THE TIME, ESPECIALLY ON THOSE OLDER BUILDINGS, IT'S NOT A CHEAP FIX TO REPLACE MOTORS AND THINGS LIKE THAT. LINE 5481 REPAIR RUNWAY AND FIELD, THIS IS FOR LIGHT BULBS AND SIGNAGE THROUGHOUT THE SPACE. AND THEN 5486 IS THE REPAIR AIRFIELD PAVEMENT. AND SO IF THEY'VE GOT PAVEMENT REPAIRS, THINGS THEY HAVE TO GO PATCH HOLES AND SUCH, THAT LINE IS WHERE THAT COMES FROM. THE LAST FEW YEARS THEY'VE SEEN A LOT OF, THEY'VE DONE A LOT OF WORK I KNOW ON TAXI ALPHA WITH THE IMPROVEMENT PROJECT BEING DONE. HOPEFULLY THAT RESOLVES SOME OF THEIR MAJOR PAVEMENT ISSUES. BUT THEY JUST HAVE SO MUCH GROUND OUT THERE THEY'RE GOING TO CONTINUE TO HAVE ISSUES NO MATTER WHAT DOWN THE ROAD. And then the airport security, line 5513. This is a newer line, but it covers the access control systems, the cameras, and everything else related to the airport security systems out there. ON THE SECOND PAGE, LINE 6001, I'LL LET CHEF SPEAK TO A LITTLE BIT, BUT THE AIRPORT IMPROVEMENT LINE, HERE WE'VE HISTORICALLY BUDGETED FOR THE EQUIPMENT THEY'RE GOING TO BUY AND WE HAVE SOMETIMES KIND OF BUFFER AMOUNTS WHERE WE KNOW WE'RE NOT GOING TO SPEND IT AS IT ADDS TO THAT CASH FORWARD. BUT IN THIS 26 AND 27 BUDGET, WE ANTICIPATE A LIKELIHOOD OR A POSSIBILITY THAT FULL AMOUNT BEING SPENT DOWN, WHICH IS WHY THE $600,000 IS ALLOCATED IN THE CASH FORWARD. BUT IN 2026, They're replacing an airfield lighting panel, working on parking lot cameras, the entrance road chip seal, and then some hanger crack seals in the airport house renovation. And then in 27, they anticipate the radio amplifier, a two-way radio amplifier being put in place, and then renovating an old office building to be able to be used, and then renovating building 71. And then Rochelle will speak to the Kansas Air Service Development Match. There's a portion, about $150,000 a year, set aside for that. AS AN OPPORTUNITY FOR US TO WORK WITH THE STATE AND GET SOME OTHER OPPORTUNITIES. I THINK THAT'S KIND OF IT FOR THE MAIN GENERAL AIRPORT FUND. STARTING CASH BALANCE AT THE BEGINNING OF THE YEAR IS $1.47 MILLION, AND THE ANTICIPATED ENDING IS THAT $600,000 TARGET FIGURE THAT WE'LL ROLL FORWARD. I'LL GO THROUGH AIRPORT IMPROVEMENT AND THEN THE TERMINAL PROJECT FUND, AND THEN I'LL LET ROCHELLE JUMP UP AND SPEAK TO THE POINTS SHE WANTS TO MAKE. FUND 562 AIRPORT IMPROVEMENT. THIS IS WHERE OUR AIP DOLLARS COME IN, AND THE CITY HAS A PORTION THAT WE PAY. IT'S THEN RECAPTURED THROUGH PFCs THAT WE RECEIVE, AND A LOT OF THE FEDERAL DOLLARS COME IN FOR THE PROJECTS HERE. SO THE MAIN ONES THAT WE'RE WORKING ON RIGHT NOW ARE TAXAWAY ALPHA DESIGN, WRAPPING UP PAYMENTS THERE, AND THEN THE CONSTRUCTION WILL START, AND THEN THE SRE BUILDING DESIGN CONSTRUCTION AS WELL. SO THOSE ARE THE AIP PROJECTS THAT ARE CURRENTLY UNDERWAY OR IN PROCESS. And then for the airport terminal project, we have the cash balance remaining is about $2.5 million. There's about $360,000 of expenses for the terminal project itself to wrap up as they finish kind of the final checklist issues that they've been waiting on. We'll have some final payments there. And then the parking lot, I think, is right around the tune of $2.1 million right now, which will... take almost all of the funds set aside for that project. And whatever's left, we'll either put toward another improvement at the airport or put towards debt service payments for the bond dollars that came through. And with that, I will kick it over to Rochelle.

Good afternoon. Like Jared mentioned, a lot of our at the airport is business as usual. He did mention an opportunity. The state of Kansas has a Kansas Air Service Development Incentive Program, and so we are looking to, we've applied for it before, and we're unable to successfully acquire additional air service. It is very challenging, but we're going to try again, and so what that looks like is air service that does not compete with our current air service, so the essential air service through American Airlines to Dallas will remain. We have to look at something that's either once daily, less than daily, or seasonal routes. And then what we look at is folks that are currently not being served with our current air service. So we also do air service studies, which takes market studies of 90 mile radius around Garden City. Where did people purchase their ticket? What airport did they fly from? What airline they flew? and then what their final destination. And what we gather from that is to look at those destinations that we can potentially look to acquire additional air service. With that being said, it's all difficult because airlines are not just gonna be like, yeah, we'll give you air service. They say, how much are you gonna pay us? So with the Kansas program and the city's portion of that, it would be approximately $1,250,000 as an incentive program to an airline. However, that does not go very far at all for an airline. So we are going to continue to work on that. I hope I have good news here in six months or a year to tell you that we have additional air service. But if that funding is not utilized, we will continue to keep it in our budget and be able to offset some of those expenses that we're experiencing in our budget currently.

Thank you, Rochelle. And to that point, or anything not spent will then be increased cash carry over to the next year and help alleviate the pain of next year's budget. So if it's not used for that program, the benefit is that it makes your next year conversation a little bit easier. Moving on to golf, we have the golf course revenue. I looked back through April 26th to April 25th. Weather, especially in the first quarter of the year, really plays a big factor in whether they're generating revenues or not. 25 was a record-breaking year for the golf course. They saw a lot of green fees, a lot of players out there. WE'RE ON TRACK ABOUT THE SAME FOR REVENUES THROUGH APRIL OF 2026 AS WE WERE IN 25, WHICH IS A GOOD THING. WE'VE UNDERBUDGETED BASED OFF OF 25 BEING A RECORD-BREAKING YEAR AND BEING PRETTY MUCH PERFECT WEATHER MOST OF THE YEAR FOR THEM TO BE ABLE TO BE OPEN. 26, THEY'RE SEEING SIMILAR STORIES WHERE IT'S BEEN GREAT WEATHER SO FAR AT THE START OF THE YEAR, BUT YOU NEVER KNOW WHAT THE END OF THE YEAR AND THE kind of winter time if that's going to play out the same. And so we've leveraged our revenues a little under what 2025 actuals ended up being, anticipation of potentially a drop off due to weather or other things there. And I'll let Tisha speak to the kind of comparison with play as far as rounds played and things like that when she gets up here as well. OTHER REVENUES ARE PRETTY MUCH THE SAME FOR THE GOLF COURSE. YOU'LL NOTICE THAT IN THE BOTTOM TWO LINES, THERE'S TRANSFER GENERAL FUND AND TRANSFER SPECIAL PARK CREATION RECS. THESE ARE AMOUNTS THAT COME FROM THE GENERAL FUND OR FROM THE SPECIAL PARKS AND REC FUND TO HELP SUBSIDIZE AND KEEP THE GOLF COURSE AFLOAT. SO $425,000 HAS BEEN THE FIGURE FROM THE GENERAL FUND THE LAST FEW YEARS, AND THEN $80,000 HAS BEEN THE FIGURE FROM SPECIAL PARKS AND REC. Next, going into the golf pro and clubhouse portion, you have the salary benefits for the staff that run the golf pro shop. There's three full-time staff and then a handful of seasonals that come and go. You'll notice their banking credit card, 5223 line has gone up. They have a new software they started using with last 18 months and their fees, their percentage rates are a little bit higher, but they have quite a bit more features and kind of functionality that the old program didn't. And so that increased cost is pretty marginal compared to the benefit that it brings, but that is an increased cost we're experiencing. And then the contracted golf pro line, 5286 has gone up as play has increased and as cart usage has increased. the contract that we have with our golf pro, lots of bonus each year. And so it's based off of those numbers. And so that's been an upticking as success of the golf course goes up, you'll see that number increase as well. Then they have their rental golf carts line 5469. This is anticipation of when they have to bring in extra golf carts for extra large tournaments. But generally there's a fee associated with that tournament then to recoup the cost of those golf carts. So there should be a correlating revenue to offset those. And then line below that for repair buildings, there's $24,000 in 27. They do anticipate looking to do some siding replacement and repair on the clubhouse. And so that $20,000 uptick in 27 is for that project. The rest of it stays pretty well the same for the Golf Pro. We'll jump over to the golf course maintenance, which is the next section. Here we have staff, similar story. You've got a handful of full-time staff out there at the maintenance shop, and then some seasonals that come on as well, especially during the summer. They require equipment line. We've upticked the last couple years. We knew that our longtime mechanic was going to retire, and so the expertise and ability that he had to keep things alive is pretty exceptional and not something you find as often in the market today. And so we anticipate some increased costs there, especially with a lot of the equipment they have being older and needing replacement. And then the... the repair water service line. You saw an uptick in 2025 for that. A lot of those are the heads for the sprinklers. They've had some of the renovation projects where they've had to tap into that, but they also had a stock of heads from when they were doing renovations and they've kind of depleted all those. So we'll continue to see that go up if they have to buy more inventory and buy more material as we go down the road. And then for new equipment, other for them, their anticipated plan is to buy a greens roller in 2026 and then a bunker utility rake and a 200-gallon sprayer in 2027. And then there's some other equipment as well that the golf course is looking to purchase that will come from special parks and rec and other funds, as we talked about last time. And Tisha can touch base on those kind of plans and what's coming in the future as far as golf carts and other things as well. STARTING CASH BALANCE FOR THE GOLF COURSE FUND IS $176,492, AND THE ENDING CASH IS ABOUT $25,000. I THINK OUR ENDING CASH LAST YEAR WAS ABOUT $800, SO MUCH IMPROVED, BUT THIS IS ALWAYS A VERY LEAN BUDGET. WE DON'T ANTICIPATE, WE DON'T EXPECT IT TO BRING IN A LOT OF EXTRA REVENUE, HENCE THE SUBSIDY FROM GENERAL FUND AND THE SPECIAL PARKS AND REC, BUT AS WE CONTINUE TO ADJUST THE RATES AND THINGS AS PLAY INCREASES, THE DEMAND INCREASES OF THE COURSE, CONTINUE TO ADJUST THOSE RATES TO BE MORE MARKETABLE AND MORE KIND OF FISCALLY INDEPENDENT AS A GOLF COURSE IS SOMETHING WE'LL CONTINUE TO LOOK TO DO. AND I'LL SPEAK REALLY QUICKLY BEFORE TISHA JUMPS UP ABOUT THE GOLF COURSE IMPROVEMENT. THIS IS THE WHERE THEIR IMPROVEMENT PROJECT'S BEEN COMING FROM. THE LAST FEW YEARS THE REVENUE HAS COME FROM A STATE GRANT FOR TOURISM AND THEN SOME DONATIONS FROM THE FRIENDS OF BUFFALO DUNES. AND THIS YEAR WE ANTICIPATE DUNES TO COVER A PORTION OF THE CART PATH PROJECT THAT THEY'RE WORKING ON AS WELL AS SOME OF THE ARCHITECTURAL CARTS FOR THE BATHROOM PROJECT. And then they're also wrapping up the course improvement project and the driving range improvement project. So you'll see in 26 and 27, that course building course, golf course building line at the very bottom, 80,000 to 50,000, we'll wrap up those projects. And then we anticipate that $50,000 is a donation coming in this year from Friends of Buffalo Dunes. I'm working with the friends of Buffalo Dunes to determine if that will come to the city and then we'll get it as a revenue and expense out or if they want to specifically pay the invoices directly to the vendors. And so that may be an element we don't see in the budget in actuality, but then the revenue and the expense would both go away at the same rate. With that, I'll kick it over to Tisha.

Good afternoon. Overall, like Jared said, our budget is very similar. We do have those pieces of equipment that we're looking to purchase this year. Hopefully our other equipment can stay healthy for us as well. We're starting to gather information for analysis on golf carts. We need to replace our fleet within the next year to two years. We're hoping to push it out as far as we can. but we're looking at different options, not only cart brand, but also purchase versus lease and seeing what might be a best fit for us. Again, this unseasonably warmer weather has tremendously helped us out, but also the renovations that we've completed out at the golf course and the national attention that we've gotten, we've seen an uptick in people from outside of our community coming in and using the course, which is really great. That's resulted in an uptick of rounds played at 33% over last year, same time. And our green fees are up about 42%, which that's kind of that story of out-of-town usage. Typically, those people don't have memberships with us, so we can kind of judge that. Our membership fees are up about 14%. Cart fees, 48%. And then our food and beverage fees are up about 46%. So all of that tells a great story for the golf course and how we're proceeding. Let's see, are there any questions? Thank you. Thank you.

All right, our last page of the report today is the recreation reserve. This is somewhat of an antiquated fund. When the recreation commission came over to the city, we originally had them as an enterprise fund, and so they kept their reserve that they had utilized. And then we incorporated them into the general fund, so the reserve remains. We have this as kind of a standalone cash reserve for recreation purposes. The last time it was used, we purchased the golf carts out of this back in 2021 and then repaid the rec reserve from the special parks and rec. And so you'll see in the 26 revenue line, there's $25,000 as the transfer from special recreation. That's the final payment for those golf carts. So that was kind of an internal financing way of doing it when we purchased the carts last time. The golf course fund itself won't be able to support a multi-thousand, $100,000 reserve. purchase of a fleet of golf carts and so likely it will be special parks and rec or the rec reserve again if we look to internally finance this and then find a way to pay that back from the general fund or special parks and rec over the years so the current balance at the start of this year was about 435 000 currently we're right about 460 and there's an anticipated transfer from the general fund to the rec reserve of fifty thousand dollars and twenty seven to get to about five ten THAT WILL BE ONE OF THE LEVERS THAT WE PRESENT THE COMMISSION AS POTENTIAL ADJUSTMENTS TO MAKE FOR THE GENERAL FUND TO SOLVE KIND OF THE BUDGET PROBLEM. THAT $50,000, WE'VE TALKED WITH MATT A LITTLE BIT, BUT WHAT IS THE IDEAL FIGURE HERE FOR A RESERVE? WE ORIGINALLY USED IT FOR CAPITAL. AFTER COVID, WE TALKED ABOUT HAVING IT AS A RAINY DAY FUND IN CASE SERVICES AREN'T ONGOING. WE'RE NOT RUNNING PROGRAMMING. WE HAVE NO REVENUES COMING IN, BUT WE STILL HAVE STAFF. So it was kind of a switched mindset on us a little bit after COVID to see like, hey, there's other things that could hit as well. And so having approximately half a million dollars, we feel is a pretty solid number. And so the question is, do we want to continue to increase that and transfer money from the general fund to build this up or keep it status quo, barring a change to what the plan is? And so that'll be a lever. And with a red, yellow or green, it may be yellow or red saying, hey, we think this target's actually probably good. Maybe we don't do this practice going forward. So there's your first $50,000 solution for our budget when we get to general fund next week. And with that, I'm done of my hour-long discourse. I'm happy to answer any questions or anything else you guys can ask me. Thank you, Jared. Thank you, Jared.

Thanks very much.

That concludes the new business items with the exception of the executive session. We don't anticipate any action after the executive session. If the commission would like to take up the consent agenda item and not remove any of those to discuss separately, the appropriate motion would be to approve consent agenda items 13A through G.

I make a motion that we approve the consent agenda items 13A through G. There's been a motion.

Is there a second?

I second.

There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes. And we will carry up commissioner reports before we head into executive session. Commissioner Cessna.

Congratulations on the electric department for receiving their three awards. Shows that we have an outstanding electric department and reliable electricity in our community. Attended the Garden City High School Hall of Fame during the graduation weekend last weekend and also the high school graduation ceremony. have a large number of graduates from Garden City High School. The last day of school for Garden City Public Schools is Thursday, which is a full day of school, and then the district's on summer break. So just want to remind everybody to watch out for the construction crews. We have a lot of orange cones. Been reminded quite a few times that we have a lot of orange cones around our community with a lot of construction going on. But just want to remind everybody that construction crews are out and trying to enhance our community. So just be mindful of that. And then shop local and fly local. Thank you.

Thank you. Commissioner Landgraf.

I just want to start by saying congrats to the 2026 Citizens Academy program graduates. And also thank you for your willingness to participate and learn what all goes on at the city. Also just want to say congrats to the high school graduates as well for the class of 2026. I know you will go out into the world and make the world a better place. Also, I just want to say congrats to the electric department. These awards place the electric department towards the top in the nation in electric reliability, efficiency, and safety. I believe these awards demonstrate that we have a top-tier electric department here in Garden City. Also, I just want to recommend to folks to look at the spring cleanup summary. I think this summary really just shows how hard of work our crews do during this year's spring cleanup. Also just want to say thank you to the FINUP Foundation for your generous gift and also that you guys have done so much for our communities. Just want to say thank you for that. Also want to remind folks about Beef Empire Days. Right now the carnival is going on at the Finney County Fairgrounds and then the events will begin on Friday, May 29th. Just want to highly encourage people to go out and attend these different events as we celebrate the beef industry, which plays a huge vital role in our community. And then finally, I just wanna say it was great having the Leadership Kansas class of 2026 out here in Garden City on the 14th and 15th. I believe probably about half of this class had never been to Garden City before. And a lot of these people end up leaving thinking, man, why haven't I been to Garden City before? I heard tons of compliments ranging from our amazing retail sector to our tremendous entertainment to just a great appreciation for a variety of businesses and also the diversity of our community as well. I think it's also good to be able to hear these compliments from an outsider perspective because sometimes we can get weighed down with some of the negativity that we EXPERIENCE ON A DAY-TO-DAY BASIS, SO IT'S GOOD TO HAVE THIS OUTSIDER APPROACH KIND OF REMIND YOU WHAT ALL IS GOOD GOING ON IN GARDEN CITY. AND THEN, FINALLY, ONE OF THE COMPLIMENTS I HEARD CONSTANTLY IN PRAISES FOR WAS THE PRESENTATION GIVEN BY OUR CITY MANAGER, MATT ALLEN. NOW, I KNOW THE POWERPOINT DIDN'T WORK AS WE WANTED TO, AND I THINK THERE'S RUMORS GOING AROUND THAT IT WAS A TOWN TO THE EAST THAT TRIED TO SABOTAGE THAT POWERPOINT PRESENTATION. Because they knew just how good of a job you were doing. So I just wanted to say thank you for that and also thank you for representing Garden City in a great way.

Thank you.

Thanks for the great pre-meeting. It was really nice to be able to, you know, think about the city on a different level as, you know, from the outside looking in as to, you know, when we come into the city, you know, what do those signs look like to welcome people, but then also, you know, thinking through the wayfinding and looking at different alternatives and different placements for the signs and just kind of thinking about it from an outsider's perspective. And also, I mean, I know when I deliver Meals on Wheels, I still have to get out Google Maps because I don't quite know every single street in Garden City. And so it's just kind of a great way to just take a step back and think through how important that is to our community. I did attend the Southwest Kansas Builders Association luncheon last week. It was very well attended. I know that they have Matt coming up next week or next month to talk about sales tax and some other things. And so it's a great opportunity to network with the builders and realtors and bankers and just everybody who's affiliated with that group. I also wanted to commend our fire department for all of the help that they've been doing with the fires in southwest Kansas. My daughter lives in Ashland and last night was evacuated and is back home, but I know having our fire department do everything that they can and all of the hard work and just all of the pictures that I see and from a personal level, I really appreciate everything that people are doing to make sure that those communities are safe. So thank you very much for that and also yeah the citizens academy i always think that's such a fun opportunity for people in our community to get a deeper understanding of just everything that we do and it was really nice to be able to hear that but then also thank you to all of the city staff that participate in that i know that it takes up your nights and your weekends and but you can just see the benefit from that from the community and all of the different things that they learned so thank you guys so much for that that's all

Thank you. Commissioner Canales is on it.

So I think everybody's touched on everything that I had written down. But I do want to go ahead and say, again, thank you to the 2026 Citizens Academy. Keeping in mind that real change happens when people step up and get involved in doing their part of the community. Yes, prayers for everybody that's involved in the Southwest Kansas wildfires. Congratulations to all the graduates. May your future be bright and filled with endless opportunities. And then just may everybody have a safe upcoming Memorial weekend.

Thank you. Yeah, all the celebrations, all the felicitations, just an incredible, I guess, time for our community of all these graduations, citizens and academy graduations, and seeing their deep desire to love our community and to appreciate it more. I think it makes it very easy for us because the staff just do a wonderful job of showing them and giving them a firsthand look of saying, hey, like, it is not as easy as it looks. It is not as easy as it feels like it can be. And so I'm very appreciative of that. Last weekend, I joined some of our city staff down to Oklahoma to look at the Grand River Dam. And, you know, I never thought I would care enough about a dam. All the facts there, a mile-long, continuous, columned dam. And I was just really impressed with the insight in of all these people that it took to generate power for us. And we're lucky to get a small fraction of that for the future of Garden City and to know that Honestly, people's livelihoods depends on whether we have power or not. And today, seeing the APPA awards and just all the amazing work, and it will be sad to see you go, Mike, but I know that we are in good hands with Jose and all of our other staff, and I appreciate that a lot. And just a huge thank you to the Finnip Trust for their continued support of our recreation and of our parks. With their contributions every year, we are able to make Garden City a lot better and we are very lucky for their trust over and over again. But other than that, we will take on item 12C.

How long do we need to go into it?

30 minutes.

Okay.

With just Matt? Yeah, just me. If we could have a little bit of a gap between. I would appreciate that.

Yeah, make a bathroom.

Start at three, maybe?

Yeah, we can start at three. Okay.

Yeah. Go ahead.

Okay. to go into executive session pursuant to KSA 75-4319B1 pertaining to personnel matters of non-elected personnel and their contractual obligations. Because if this matter were discussed in open session, it might invade the privacy of those discussed for 30 minutes starting at 3 o'clock and including City Manager Matt Allen.

There's been a motion, is there a second? Go ahead.

I second.

There's been a second. There's been a motion and a second. Any further discussion? Seeing none, all those in favor say aye. Aye. Opposed, nay. Motion passes. We will enter executive session. Our executive session has expired. We are back in open session. No action was taken. This meeting is adjourned.