Governing Body

Governing Body Minutes – September 17, 2024 CYRUS K. HOLLIDAY BUILDING, Topeka, Kansas, Tuesday, September 17, 2024. The Governing Body members of the City of Topeka met in regular session at 6:00 P.M. with the following Councilmembers present: Councilmembers Hiller, Valdivia-Alcala, Ortiz, Kell, Duncan, Dobler, Miller and Hoferer -8. Mayor Padilla presided -1. Absent: Councilmember Banks -1. Public comment for the meeting was available via Zoom or in-person. Individuals were required to contact the City Clerk's Office at 785-368-3940 or via email at cclerk@topeka.org by no later than 5:00 p.m. on September 17, 2024, after which the City Clerk's Office provided the Zoom link information and protocols prior to the meeting start time. Written public comment was also considered to the extent it was personally submitted at the meeting or to the City Clerk's Office located at 215 SE 7th Street, Room 012B, Topeka, Kansas, 66603 or via email at cclerk@topeka.org on or before September 17, 2024, for attachment to the meeting minutes. AFTER THE MEETING WAS CALLED TO ORDER, Councilmember Kell provided the invocation. THE PLEDGE OF ALLEGIANCE was recited by meeting participants. ADVISORY COUNCIL REAPPOINTMENT of Aricles "Wulf" Roby to the City of Topeka Americans with Disabilities Act (ADA) Advisory Council for a term ending October 4, 2026, was presented. (Council District No. 6) ADVISORY COUNCIL REAPPOINTMENT of Joe Cheray to the City of Topeka Americans with Disabilities Act (ADA) Advisory Council for a term ending September 30, 2026, was presented. (Council District No. 9) BOARD APPOINTMENT recommending the reappointment of Del-Metrius Herron to the 09-17-24 236  Topeka Planning Commission for a term ending September 30, 2027, was presented. (Council District No. 6) BOARD APPOINTMENT recommending the appointment of Joseph Mauk to the Topeka Planning Commission for a term ending September 30, 2027, was presented. (3-mile Extraterritorial Jurisdiction) Councilmember Dobler moved to approve the appointments. The motion seconded by Councilmember Kell carried unanimously on roll call vote. The Mayor did not vote. (8-0-0) CONSENT AGENDA was presented as follows: APPROVAL of workers' compensation claim settlement in the amount of up to $50,000 to resolve the claim with Dustin Ebert on a full and final basis for a work-related injury sustained by the employee while engaged in normal work duties, was presented. MINUTES of the regular meeting of September 10, 2024, was presented. Councilmember Dobler moved to approve the consent agenda. The motion seconded by Councilmember Ortiz carried unanimously on roll call vote. (9-0-0) RESOLUTION NO. 9584 introduced by City Manager Dr. Robert M. Perez, establishing a date for a public hearing concerning the adoption of a plan pursuant to the Neighborhood Revitalization Act K.S.A. 12-17, 114 et seq, was presented. Dan Warner, Planning Division Director, reported approval would set the public hearing date of October 15, 2024, to consider renewal of the City's Neighborhood Revitalization Plan for years 2025-2027. Councilmember Dobler moved to approve the resolution. The motion seconded by Councilmember Hiller carried unanimously on roll call vote. (9-0-0) 09-17-24 237  ORDINANCE NO. 20519 introduced by City Manager Dr. Robert M. Perez, concerning adoption of the 2024 edition of the Standard Traffic Ordinances, amending § 10.15.010 and § 10.15.020 of the Topeka Municipal Code and repealing original sections, was presented. Amanda Stanley, City Attorney, reported the ordinance was discussed at the September 10, 2024, Governing Body meeting and approval would adopt the most recent version of the STO. Councilmember Duncan moved to adopt the ordinance. The motion was seconded by Councilmember Dobler. The Mayor did not vote. (The proposed ordinance involves a matter of home rule on which the Mayor has veto authority.) The ordinance was adopted on roll call vote as follows: Ayes: Hiller, Valdivia-Alcala, Ortiz, Kell, Miller, Dobler, Duncan and Hoferer -8. ORDINANCE NO. 20520 introduced by City Manager Dr. Robert M. Perez, concerning adoption of the 2024 edition of the Uniform Public Offense Code, amending § 9.05.080 of the Topeka Municipal Code and repealing original section, was presented. Amanda Stanley, City Attorney, reported the ordinance was discussed at the September 10, 2024, Governing Body meeting and approval would adopt the most recent version of the UPOC with current statutory changes. Councilmember Kell moved to adopt the ordinance. The motion was seconded by Mayor Padilla. The Mayor did not vote. (The proposed ordinance involves a matter of home rule on which the Mayor has veto authority.) The ordinance was adopted on roll call vote as follows: Ayes: Hiller, Valdivia-Alcala, Ortiz, Kell, Miller, Dobler, Duncan and Hoferer -8. ORDINANCE NO. 20521 introduced by City Manager Dr. Robert M. Perez, imposing a real estate lien, pursuant to K.S.A. 12-808c, upon certain lots and pieces of ground in Shawnee 09-17-24 238 County, Kansas, to pay the cost for utility services where such payments to the City have not been made due to neglect, failure or refusal to pay, was presented. Nicole Malott, Deputy Utilities Director, reported Staff was recommending approval of the ordinance as proposed and noted, the City would accept payments until September 30, 2024. Councilmember Dobler moved to adopt the ordinance. The motion was seconded by Councilmember Ortiz. The ordinance was adopted on roll call vote as follows: Ayes: Hiller, Valdivia-Alcala, Ortiz, Kell, Miller, Dobler, Duncan, Hoferer and Mayor Padilla -9. RESOLUTION NO. 9585 introduced by City Manager Dr. Robert M. Perez, regarding the upcoming Shawnee County Tax Foreclosure Sale, was presented. Amanda Stanley, City Attorney, reported approval would authorize the City Manager to evaluate the properties for purchase at the September 19, 2024, Shawnee County Tax Foreclosure Sale, and purchase those properties he finds necessary to mitigate the City's loss of special assessment revenue. She stated in the upcoming tax sale there are lots that have significate past due special assessments, specifically in the Lauren’s Bay Subdivision. Braxton Copley, Assistant City Manager, reported the City has identified 19 parcels eligible for development due to water, sewer, gas and electric infrastructure already in place. He stated approval of the resolution would allow the City to protect its interest under Kansas law as it relates to the delinquent special assessments due on those 19 parcels. Henry McClure stated he believes Shawnee County was not adhering to the tax policy outlined on the County’s website concerning the sale of vacant, commercial and residential lots. He spoke to the need to generate new property inventory and revenue. He reported he has asked 09-17-24 239 Attorney General Kris Kobach to review the tax foreclosure procedure being followed by Shawnee County for consistency. Councilmember Valdivia-Alcala spoke in opposition of the resolution. She stated she understands the City was trying to find a solution to a bad situation caused by a developer years ago. She cautioned the Governing Body against setting precedence for similar situations. She spoke to the importance of local governments have the authority to sue limited liability companies and developers who do not want to pay taxes. She referenced the varying definitions of the use of a “Land Bank” and believes the 19 parcels being considered in Lauren’s Bay Subdivision do not fit the definition of Land Bank usage. Councilmember Ortiz asked if the specials assessed against the properties would be sent to collections when the parcels are sold. City Attorney Stanley explained special assessments related to nuisance abatement or demolition can be sent to collections prior to being sold at a tax sale, however, special assessments for public infrastructure would not be allowed under Kansas law to be sent to collections. Councilmember Dobler reported the vacant lots in Lauren’s Bay Subdivision have been an issue since 2008 because the City allowed a developer to connect water, sewer and street infrastructure to approximately 130 lots and imposing applicable special assessments. He noted the routine amount of lots allowed by the City to connect to a single (water, sewer or street) public infrastructure improvement was 50-60 lots. He spoke to the low taxable value per capita of the city of Topeka, and the need to increase the value of the community through increasing the number of residential homes which could be accomplished through the proposal being considered. He expressed his confidence in Staff to purchase the lots at reasonable prices. He reminded the Governing Body that no matter the decision made on this resolution and the next resolution on the 09-17-24 240 agenda, delinquent special assessments as well as all taxes associated with the subset of lots (22 of the 130) being discussed will be eliminated on September 19, 2024. Councilmember Duncan reported the parcels have been owned by several people since 2008, and from his perspective he believes the City needs to intervene and maximize the parcels through applicable programs such as the Land Bank and generate property tax revenue. He spoke to the importance of recouping as much debt as possible that has incurred over the years. He reported it was his understating the Lauren’s Bay Subdivision parcels sold in the 2023 Shawnee County Tax Foreclosure Sale are still vacant and have not been developed as well as the imposition of special assessments have started over with the new owners. Councilmember Hiller asked Councilmember Dobler to provide an overview of the options available to the Governing Body as it relates to the parcels. Councilmember Dobler stated the options available for consideration include: 1. Parcels are sold to individual buyers liking result in no new development due to the extenuating circumstances of the location of utilities to certain lots. 2. The City would purchase the lots and donate to the Land Bank and obtain a single developer through the City’s RFP process to build new affordable residential homes; or 3. Allow the parcels to be sold to a developer as outlined in the next agenda item and recoup the amount of delinquent property taxes owed. Councilmember Kell referenced the purchase of Hotel Topeka and stated he remains cautious about the tax sale and expressed his aggravation with developers that use the City as a financial vessel instead of using their own funds. He spoke in support of the Land Bank concept. Councilmember Duncan reminded the Governing Body that the Land Bank rules and regulations would have to be followed. Councilmember Dobler acknowledged the concerns raised by Councilmember Kell; however, he believes this was the best option to recoup as much money as possible for the lots. 09-17-24 241  Councilmember Hiller asked if there are developers interested in building on the lots if the Land Bank process was used. Councilmembers Duncan and Dobler reported in general there are local developers interested in utilizing the City’s Land Bank process. Councilmember Hoferer spoke in support of the resolution due to infrastructure already being in place and the potential to increase the tax base. Councilmember Valdivia-Alcala asked what the cost range of the houses would be and if it would be considered affordable housing. Rhiannon Friedman, Planning and Development Division Director, reported the cost range of the houses would be between $300,000 and $500,000. Councilmember Dobler reported the funds received from the purchase of the lots could be allocated to the Land Bank to use for affordable housing in feasible areas of the city. Mayor Padilla spoke in support of the resolution and the opportunity to pursue a different solution to the problem by recouping as much money as possible while generating much needed housing and increasing the tax base. Councilmember Hiller thanked Councilmembers Dobler and Duncan for their work on the proposal and for explaining the intent of the resolution. She stated was nervous about the new plan; however, it was a crucial time to address much needed housing. Councilmember Duncan moved to approve the resolution. The motion was seconded by Councilmember Dobler carried unanimously on roll call vote. Councilmember Valdivia-Alcala voted “no.” (8-1-0) RESOLUTION NO. 9586 introduced by Councilmembers Neil Dobler and Spencer Duncan regarding Lauren’s Bay, was presented. 09-17-24 242  Councilmember Dobler reported approval would forgive past due special assessments for properties in the September 19, 2024 Shawnee County Tax Foreclosure Sale with the primary shareholder of Jim Klausman in exchange for full payment of back due property taxes and negotiated payment for 19 lots in Lauren’s Bay Subdivision by the end of 2024. He recognized this was not an ideal solution; however, it was a good start and would require a development agreement to be negotiated by the end of the year outlining the details and addressing some of the concerns expressed by the Governing Body in the previous agenda item. He thanked City Attorney Amanda Stanley for her work on the proposal. Councilmember Duncan spoke in support of the resolution. He stated the proposal was a small piece of a larger plan to address much needed infill housing development and provides more options to develop the parcels and generate potential tax revenue. Councilmember Dobler moved to approve the resolution. The motion was seconded by Councilmember Duncan. Councilmember Valdivia-Alcala asked for clarification of the three options available for consideration by the Governing Body. She also asked how much the developer owes in back taxes for the 19 lots being considered; the total amount of tax debt he owes for the entire 130 lots; and how long has he owned the lots in the Lauren’s Bay Subdivision. Amanda Stanley, City Attorney, summarized the options available for consideration by the Governing Body: 1. Do nothing resulting in the potential loss of $997,000 owed in back due property taxes. 2. Authorize the City Manager to purchase the 19 lots at the September 19, 2024, Shawnee County Tax Foreclosure Sale. 3. Approve the resolution and forgive past due special assessments for properties in the upcoming September 19, 2024, Shawnee County Tax Foreclosure Sale with the primary shareholder of Jim Klausman in exchange for full payment of back due property 09-17-24 243  taxes and negotiated payment for the lots by the end of 2024, or the lots shall be donated by the Developer to the City’s land bank. The transfer shall occur no later than March 3, 2025. Approval would also waive the requirement in its RHID concerning outstanding back due taxes and specials prior to application to allow the Developer to submit the lots in Lauren’s Bay for RHID Consideration. Rhiannon Friedman, Planning and Development Director, reported the total amount of special assessments and back due property taxes on the 19 lots being considered was $997,000; the total owed to the City by the developer for uncollected special assessments, penalties and back due property taxes are $6.7 million as of June 2024; and the developer has owned property in Lauren’s Bay Subdivision for approximately 15 years. Councilmember Valdivia-Alcala stated she would oppose the resolution because Mr. Klausman was being treated differently than other developers and being allowed to waive the money that is owed to taxpayers. Councilmember Kell referenced other developments owned by Mr. Klausman in the city and inquired on the amount of overall debt owed to the City by the developer. Jennifer Sourk, Klausman Legal Counsel, reported Mr. Klausman pays approximately $3.5 million annually in property taxes and employs approximately 500 people in the community. She stated Mr. Klausman has owned the lots since 2015, and he will have to pay a substantial amount of money upfront to make the lots buildable. Councilmember Dobler reminded the Governing Body approval of the proposed resolution would be the only option that would generate money for the City. He spoke to the success of the Wheatfield Village development as well as the many other positive contributions Mr. Klausman makes to the community. 09-17-24 244  Councilmember Valdivia-Alcala questioned if the RHID was granted to Mr. Klausman if the City would be liable if the same preferential treatment was not offered to other developers in similar situations. City Attorney Stanley confirmed there was always the chance the City could be sued; however, consideration would be given to the fact the Governing Body conducted thoughtful deliberation; and if there was rationale behind the decision made – which has taken place in this instance. She stated in the future, if a developer made the same request as Mr. Klausman the same type of deliberation would need to take place by the Governing Body. Councilmember Valdivia-Alcala referenced the Low to Moderate Income (LMI) population that she serves in her district and stated the LMI population would not support the proposal due to the blatant special treatment Mr. Klausman would be receiving. She referenced comments made by Jennifer Sourk and stated, business owners need employees as much as employees need business owners. Councilmember Dobler inquired if any person or business that owes any type of back taxes could ask the City for a waiver. City Attorney Stanley confirmed waivers do occur for LMI properties. She reported City policy allows LMI properties that have lower amounts of back due taxes and specials assessments owed to be granted a waiver based on purposes of economic development along with formal validation by the Property Maintenance Division Director. Councilmember Ortiz stated she concurs with statements made by Councilmember Valdivia-Alcala and expressed concern with Mr. Klausman purchasing the lots from the City and then selling the lots to a different developer. 09-17-24 245  Councilmember Dobler spoke to the control the City would have over the negotiations of the details of the development agreement to be approved by the Public Infrastructure Committee and the Governing Body. Councilmember Hiller stated if they approve the resolution the City will receive money for back due taxes and special assessments along with the option of assessing future special assessments. She asked City Attorney Stanley to explain how future specials would be assessed. City Attorney Stanley stated regardless of the option approved, the City will continue to work with bond counsel to determine the correct amount of annual special assessments on the remaining properties. Jennifer Sourk, Klausman Legal Counsel, reported multiple local banks are involved in the September 19, 2024, Tax Foreclosure Sale for lots in Lauren’s Bay Subdivision due to the failed investment from 2008. She stated as an entrepreneur and dedicated citizen of the community, Mr. Klausman was attempting to create a successful plan for the failed subdivision. Councilmember Hiller thanked Mr. Klausman for his assistance in rehabilitating downtown including the successful investment of the Kansan, Crosby and Dible Buildings, with all property taxes being current. Councilmember Duncan reminded the Governing Body that State law provides local government flexibility as it relates to the approval of a proposed RHID, and this proposal allows for the financial restructuring - not forgiveness of the lots and generates money back to the taxpayers. Henry McClure spoke in support of the resolution and the opportunity to collect $997,000 of back due taxes. He stated they must grow the population before they can grow the tax base. He spoke to the difficulty of being a developer in Topeka. 09-17-24 246  Mayor Padilla spoke in support of the resolution. He expressed the importance of making informed decisions based on each situation by allowing developers to assist when offered. He thanked Governing Body members and Staff for their assistance in finding a solution to a difficult situation. The motion to approve the resolution carried. Councilmember Valdivia-Alcala voted “no.” (8-1-0) RESOLUTION NO. 9587 introduced by City Manager Dr. Robert M. Perez approving the issuance by the City of Wichita, Kansas, of its Health Care Facilities Revenue Bonds for the purpose of financing or refinancing the acquisition, construction, improvement and equipping of senior living and health care facilities located in the city of Topeka, Kansas, was presented. Ben Hart, Interim Chief Finance Officer, reported approval would authorize the City of Wichita to issue revenue bonds for the benefit of Presbyterian Manors, Inc., to finance and refinance projects at the Topeka Presbyterian Manor. Councilmember Ortiz moved to approve the resolution. The motion seconded by Councilmember Kell carried unanimously on roll call vote. (9-0-0) Following a 10-minute recess the meeting reconvened into open session. APPROPRIATION ORDINANCE NO. 20522 introduced by City Manager Dr. Robert M. Perez, approving and adopting the operating budget for the City of Topeka for the year 2025 and appropriating the amounts for the purpose as set forth therein, was presented. Dr. Robert M. Perez, City Manager, thanked Staff for their extraordinary work on the budget. He commended the Governing Body for asking the tough questions and thanked citizens for their input. 09-17-24 247  Danielle Twemlow encouraged the Governing Body to make the tough decisions without delay and invest in preventative measure solutions to address gun violence. She expressed the importance of supporting a public safety approach that invests in human infrastructure by reducing the cost of violence through the investment of social services. City Manager Perez reported Staff continues to listen to the input received by residents and work to better understand the challenges facing residents regarding increased taxes. He distributed a handout outlining his proposed budget cuts (Attachment A) resulting in a zero mill levy increase. He reported the mill levy would remain flat at a rate of 36.952 for the 2025 budget. Josh McAnarney, Budget Manager, stated the initial 2025 proposed budget reflected a mill levy rate of 37.952 and the proposed cuts would reduce the budget by one mill as stated by City Manager Perez. He highlighted the proposed budget cuts as follows: • Reduce the Mill Levy back to Current Rate: Set the overall mill levy rate to 36.952, which is the current rate. Within this mill levy, transfer 1 mill from the Debt Service Fund to the General Fund. This shift will provide the General Fund with $1,438,998 in operational revenue. • Eliminate Vacant Positions: Remove 8 vacant positions as listed in Attachment A. • Ombudsman Funding: Transfer the funding for the Ombudsman position to the Water Fund. • Temporarily Un-fund Vacant Positions for 2025: Temporarily un-fund 6 positions for 2025 as listed in Attachment A. The City will retain these positions but will not fill them in 2025. • Adjust Property Tax Collection Rate: Best practice is to assume a 95% collection rate for property taxes paid to the city. Based on recent collection history averaging 96%, we will adjust the projection to a 95.5% collection rate, which is expected to generate approximately $200,000 in additional revenue. • Fire Union Adjustment: The fire union personnel budget is projected to increase. City Manager Perez reiterated no employee would lose their job as it relates to the proposed un-funded positions, and he does not anticipate much of a service impact because the positions have been vacant for several months as well as he has thoroughly discussed the position vacancies with department directors. 09-17-24 248  Councilmember Ortiz asked for further explanation of the transfer of the funding for the Ombudsman position to the Water Fund. City Manager Perez stated currently the Ombudsman position performs a high volume of customer service duties like the Water Customer Service Department; therefore, he believes there was an opportunity to gain efficiencies through the nexus of their similar job duties. Councilmember Hiller questioned the debt service level being proposed for 2025. She stated the city has been working hard to reduce the City’s borrowing level and using cash for operational costs when financially feasible. Budget Manager McAnarney reported Staff remains cognizant of the amount bonded each year and noted, Staff proposed bonding the FIRM program for 2025 instead of paying for it with cash and converting the DREAMS program financing from bonds to cash. He also reported two previously bonded projects have been converted to Federal Fund Exchange dollars to offset the DREAMS program conversion. Councilmember Dobler referenced the unexpected ending balance of $15 million of Unassigned Reserve Funds over and above the 20% Reserve Fund balance threshold in 2024. He recognized the need to use these funds to help balance the 2025 budget; however, Staffs needs to continue the mindset of bonding as little as possible. He stated if they do not use the entire amount of the reserve funds or have excess reserve funds at the end of 2024, the logical place to use these funds would be to finance the FIRM and DREAMS programs. Councilmember Hiller distributed a handout outlining proposed budget amendments (Attachment B) detailing her itemized list to address what she believes was a $20.6 million shortfall for the 2025 budget. She expressed concern with temporary adjustments being proposed by Staff to balance the 2025 budget and how it would impact the 2026 budget. 09-17-24 249  Councilmember Kell spoke in opposition of the 2% deferral of budgeted pay advancements for non-union general fund employees totaling $420,000. Councilmember Duncan reported inflation was approximately 3% so he would support a 3% increase for non-union general fund employees instead of the potential 5% increase reducing the 2025 budget by approximately $600,000. He referenced potential cuts that may be necessary to balance the 2026 and 2027 Budgets, and he would rather employees keep their jobs with a small pay increase than potentially lose their jobs in out years. Councilmember Ortiz stated she would support a 3% increase for non-union general fund employees. She spoke in opposition of the $500,000 proposed cut to Homeless Camp Abatements. She inquired on the need to sufficiently fund a new court appointed attorney in 2025. Councilmember Hiller referenced the proposed camping ordinance that would soon be introduced to the Governing Body to assist in dealing homeless camps. She stated if people were only allowed to camp three nights at a time and are demonstrating that all city ordinances are being followed such as prohibiting illegal items within the camping structure, complying with the animal leash laws, prohibiting trash at the camp sites, etc., the expense associated with homeless camp abatements would be much less. Karan Thadani, Municipal Court Judge, reported $197,000 was allotted in 2024 for the City’s court appointed attorney, and he believes the City of Topeka will be required to pay closer in the range of $600,000 to $1 million for the same services in the future. He stated Staff continues to work on a viable solution. Councilmember Ortiz thanked Kevin Cook, owner of Cook Law Office, for his 30 years of service with the City of Topeka. She expressed the importance of making sure enough money was 09-17-24 250 included in the 2025 budget to cover the cost of a new court appointed attorney for the City of Topeka. Councilmember Valdivia-Alcala confirmed a newly proposed camping ordinance was being drafted; however, it will not address the issues associated with the homeless encampments until the city has more affordable housing available and the Built for Zero program was implemented. She expressed her confidence in Staff as it relates to the proposed budget and believes proposing amendments for $20.6 million instead of the $15 million as proposed by Staff was confusing to citizens. Councilmember Duncan asked if overtime efficiencies are being realized now that some departments are fully staffed and if so, are those offsets being considered in the long-term budget. City Manager Perez reported the Topeka Fire Department currently operates within their overtime budget; however, he believes overtime funds will always be needed due to call backs. Randy Phillips, Topeka Fire Chief, stated only recently has the Topeka Fire Department been considered fully staffed making it difficult to gauge the amount saved from decreased overtime. He reported they will continue to monitor overtime closely in 2024. Jamey Holtham, Interim Topeka Police Chief, stated they continue to work to reduce the vacancies which in turn will reduce overtime costs in the long-term. Councilmember Duncan encouraged all City departments to closely monitor the cost of overtime as it compares to hiring full-time employees in the long-term. Councilmember Duncan moved to approve the amendments as proposed by the City Manager (Attachment A) and direct Staff to adjust the State budget forms before submission. The motion seconded by Councilmember Miller carried unanimously on roll call vote. (9-0-0) 09-17-24 251  Councilmember Dobler spoke to the overall intent of the proposed budget amendments (Attachment B) presented by Councilmember Hiller. He stated the 2025 Budget has been set and Staff can start making plans on how they are going to balance the 2026 and 2027 Budgets knowing there will not be a big increase in the mill levy, if any, due to the current financial environment and continued increases in taxes by all entities. He noted, no matter the mill levy rate, Staff has always been able to provide the basic services needed including Police, Fire and Public Works as well as other needed services as they can. He stated he believes they do not need to consider each amendment separately, but instead, give directive to the City Manager to review the document while keeping future budgets in mind. Councilmember Dobler moved to adopt the ordinance as amended. The motion was seconded by Councilmember Valdivia-Alcala. Councilmember Hiller suggested they make a stronger provision by limiting the use of Unassigned Reserve Funds to $10 million and/or challenging the City Manager to find $5 million of budget cuts by December 20, 2024, so the proposed list could be considered as well as other items. She expressed concern with depleting the Unassigned Reserve Fund. Councilmember Kell referenced out-year budget projections and stated they need to consider raising the mill levy in small increments and hopefully avoid a large increase in out-years. Councilmember Duncan stated based on many factors he believes they will have funds at the end of the year to allocate funds to the Unassigned Reserve Fund. Councilmember Dobler stated after some thought he would support the use of the Unassigned Reserve Funds as proposed by the City Manager because the policy concerning the allocation of those funds would still be in effect, and any amount over the 20% threshold would be added back into the that fund. He asked for brief quarterly updates on the status of the budget. He 09-17-24 252 again requested the proposed amendments by Councilmember Hiller are considered as Staff looks forward to the 2026 and 2027 Budgets. City Manager Perez confirmed high-level quarterly financial updates would be provided to the Governing Body. Councilmember Hiller stated her amendments were based on an assessment by Staff that the 2024 budget would likely have a $2 million shortfall. Budget Manager McAnarney stated Staff was projecting $2 million of expenses over revenue if the DREAMS program was funded with cash instead of bonding; however, if they opted to bond the DREAMS program and change other project funding to Federal Fund Exchange dollars it would result in approximately $500,000 of expenses over revenue. Councilmember Hiller expressed concern with depleting the Unassigned Reserve Fund to balance the 2025 budget and then facing an even larger budget deficit in 2026. Mayor Padilla asked Councilmember Dobler if the motion to approve the ordinance as amended carried if it was his intent that they work with the City Manager and Staff and determine which proposed amendments could be seriously considered. Councilmember Dobler concurred with Mayor Padilla. City Manager Perez announced he intends to schedule a Governing Body retreat to get a better understanding of the Governing Body’s priorities, service levels expectations as well as present proposed revenue and fee adjustments as they begin to work on the 2026 budget. The motion to adopt the ordinance as amended with the provision that the City Manager and Staff consider the amendments proposed by Councilmember Hiller (Attachment B) as they begin to consider the 2026 and 2027 budgets; and direct Staff to adjust the State budget forms before submission carried. 09-17-24 253  The ordinance was adopted on roll call vote as follows: Ayes: Valdiva-Alcala, Ortiz, Kell, Miller, Dobler, Duncan, Hoferer, and Mayor Padilla -8. Noes: Hiller -1 DISCUSSION regarding a proposal to amend the Construction and Licensing Fees in the Topeka Municipal Code to implement bi-annual contract licensing, was presented. Richard Faulkner, Development Services Division Director, reported approval of the proposed ordinance would allow licenses to be issued on a two-year cycle. He stated the Policy and Finance Committee recommended approval by a vote of 3-0-0 on August 15, 2024, and all applicable trade boards support the proposed change. Councilmember Duncan suggested City licenses be changed to renew on the license anniversary date; if the fee was going to change to make all changes simultaneously; and offer a split payment option with an increased fee assessed in year two. He referenced the upcoming comprehensive review of all city fees and recommended when feasible, that all fees be changed to a two-year cycle. Councilmember Kell spoke in opposition of imposing additional fees with the two-year split payment plan. Rhiannon Friedman, Planning and Development Director, reported all fees and payments options will be included in their review. Mayor Padilla spoke in support of a split payment plan. PUBLIC COMMENT was submitted by Joseph Ledbetter, Patrick DeLapp and Henry McClure (Attachment C) and provided by the following individuals: Danielle Twemlow expressed her disappointment with the Governing Body for inserting their personal bias into the decisions that impact others. She expressed her frustration with bringing solutions to the Governing Body about community issues and not being heard many 09-17-24 254 different realms. She asked the Governing Body to review the broad definition of community safety and the importance of providing resources to allow for the front-loading of people power. Henry McClure suggested offering a discount for those applicants that pay their license fees upfront. He expressed his disappointment in the City of Topeka and GO Topeka regarding failed economic development and their desire to control the business deals. He suggested the annual $5 million allocated to GO Topeka for economic development be reallocated for infrastructure improvements. Councilmember Valdivia-Alcala left the meeting. ANNOUNCEMENTS BY THE CITY MANAGER, MAYOR AND MEMBERS OF THE COUNCIL; Councilmember Kell urged students and citizens, “if they see something, say something” and report suspicious activity to local authorities. Councilmember Miller announced the Shawnee County Crime Stoppers was a good resource to anonymously report crimes. Councilmember Dobler thanked the Topeka Police Department for enforcing speed limits throughout the city. He requested a presentation on the Wichita State University EMS Study in October 2024. He thanked Councilmember Ortiz for helping him with his constituents while he was ill. Councilmember Hiller announced she has been invited to attend the annual meeting of the “Brown 5” where representatives from the states of Delaware, Kansas, Washington, D.C., South Carolina and Virginia, all national sites considered to be part of the Brown v. Board of Education National Historical Site, will share their stories and explore the different sites. She also reported that with the broadening of the national historic site to a national historic park and the inclusion of 09-17-24 255 the South Carolina site as a national historic park, Congress was in the process of rewriting the interpretive programing that should tell the story about the Brown v. Board of Education National Park. She stated this would be a good time to provide input on the interpretive programming for the park while the language was being considered locally and nationally. Councilmember Ortiz thanked the Topeka Fire Department for their help with a recent residential fire in District 3. Councilmember Miller moved extend the meeting past 10:00 p.m. The motion seconded by Councilmember Kell carried. Councilmember Ortiz voted “no.” (7-1-0) Councilmember Kell moved to recess into executive session for a time not to exceed 20 minutes to discuss employer-employee negotiations relating to one or more unions as justified by K.S.A. 75-4319(b)(3). The open meeting will resume in the Cyrus K. Holliday building First Floor Conference Room. The following individuals will be necessary to aid the Governing Body in its discussion, City Manager Perez and other staff he deems necessary. The motion was seconded by Councilmember Miller. Mayor Padilla asked all those in favor of recessing into executive session to indicate so by verbally by saying “yea” and those opposing to indicate so verbally by saying “no.” The motion carried unanimously on voice vote. Councilmember Ortiz voted “no.” (7-1-0) At the conclusion of the executive session, the meeting reconvened into open session and Mayor Padilla announced no action was taken during the executive session. Mayor Padilla moved to recess into executive session not to exceed 15 minutes to discuss one or more matters in litigation deemed privileged under the Attorney-Client Privilege as allowed under K.S.A. 75-4319(b)(2). The open meeting will resume in the Cyrus K. Holliday building First Floor Conference Room. The following staff will be necessary to assist the Governing Body 09-17-24 256 in its deliberations, City Attorney Amanda Stanley and any other staff the Governing Body finds useful. The motion was seconded by Councilmember Hoferer. Mayor Padilla asked all those in favor of recessing into executive session to indicate so by verbally by saying “yea” and those opposing to indicate so verbally by saying “no.” The motion carried unanimously on voice vote. Councilmember Ortiz voted “no.” (7-1-0) At the conclusion of the executive session, the meeting reconvened into open session and Mayor Padilla announced no action was taken during the executive session. NO FURTHER BUSINESS appearing the meeting adjourned at 10:20 p.m. (SEAL) Brenda Younger City Clerk 09-17-24 257 ATTACHMENT A ATTACHMENT B ATTACHMENT C