July 7, 2025 Commission Minutes

Mayor Jason Showalter called the meeting to order with Vice-Mayor J J Howard, Commissioner Sarah Artzer and Commissioner Ann Myers responding to roll call. Commissioner Brook Redlin was absent. 

Also present were Dustin Bedore – Director of Electric Utilities, Joshua Jordan – IT Director, Danny Krayca – Director of Parks, Kenton Keith – Director of Streets and Facilities, Jake Kling – City Attorney, Neal Thornburg – Director of Water and Wastewater, Jason Erhart – Chief of Police, Zach Hildebrand – Code Enforcement/Building Official, Shauna Johnson – Deputy City Clerk, Mary Volk – City Clerk and Kent Brown – City Manager.

Mayor Showalter led Pledge of Allegiance

PUBLIC COMMENT

PROCLAMATIONS AND PRESENTATIONS

1. 2024 Audit Report Harold Mayes – Harold Mayes of Agler & Gaeddert was present to review the 2024 audit for the City of Goodland.  Audit is not in accordance with GAAP because of waiver; however, statements are in accordance with statutory regulations and federal regulations with federal awards.  Your Airport Improvement Fund has a negative cash balance which is not a statutory violation because funded by grants.  Generally, with utility funds you want to have three months of cash balance to operate.  Electric Utility and Solid Waste are a little under what is needed in cash reserve.  Cash balances at the end of the year are adequately secured by pledged securities or FDIC coverage. This year required a single audit because you received grant funding over $750,000, next year that limit goes to $1,000,000.  Upon the singe audit there were no deficiencies or material weaknesses. Mayor Showalter asks if a member of the public wanted to get a copy of the audit where could they inquire for one?  Mary stated, the public can receive a printed copy or emailed copy from my office.

CONSENT AGENDA

1. 06/16/2025 Commission Meeting Minutes
2. 06/26/2025 Commission Work Session Minutes
3. Appropriation Ordinances: 2025-13, 2025-13A; 2025-P13; 2025-P13A

ON A MOTION by Commissioner Myers to approve Consent Agenda seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 4-0. 

ORDINANCES AND RESOLUTIONS

1. Ordinance 1799 – Adopting and Amending Sections 16-401 through 16-416 regarding ARTICLE IV. BICYCLES, ELECTRIC ASSISTED BICYCLES, SKATEBOARD, SCOOTERS, ELECTRIC SCOOTERS, ETC. – Kent stated, this ordinance was discussed at a previous meeting to give staff direction to work on final draft. Commissioner Myers verified that a resident may walk their bike or motorized vehicle on Main Street sidewalk. Jason stated, I have no issue if walking it. ON A MOTION by Vice-Mayor Howard to approve Ordinance 1799 – Adopting and Amending Sections 16-401 through 16-416 regarding Article IV. Bicycles, Electric assisted bicycles, skateboard, scooters, electric scooters, etc. in the City of Goodland seconded by Mayor Showalter.  MOTION carried on a VOTE of 4-0. 

FORMAL ACTIONS

1.  Acceptance of 2024 Audit Report – Mayor Showalter stated, this was a through review of the financial statement. ON A MOTION by Mayor Showalter to approve the 2024 Audit Report seconded by Commissioner Myers.  MOTION carried on a VOTE of 4-0. 
2. New CMB License – Goodland Travel Center – Kent stated, this CMB license is for the Goodland Travel Center.  The manager was in attendance for any questions or concerns. ON A MOTION by Mayor Showalter to approve the CMB License for Goodland Travel Center for purchase and consumption off the premises. seconded by Commissioner Artzer.  MOTION carried on a VOTE of 4-0. 
3. Approve Pickleball resurfacing project – Pro Track and Tennis proposal – Kent stated, this was brought to the commission earlier this year to approve grant application.  The city applied for two grants and received $6,000 from Dane G. Hansen Foundation and $10,500.00 from Sherman County Community Foundation. City staff will move the net posts and work on dividers for the courts which will provide the in kind service required. ON A MOTION by Mayor Showalter to approve the project proposal from Pro Track and Tennis for $20,400 seconded by Commissioner Artzer.  MOTION carried on a VOTE of 4-0. 
4. Notice to terminate the Firm Energy, Capacity, and Ancillary Services Agreement, effective at the end of the initial term ending on December 31, 2026 – Kent stated, through discussions over the last few months regarding proposals from Sunflower/Prairieland and KMEA. The City Commission directed staff to prepare a notice of termination letter for the current contract and proceed with the proposal from KMEA. ON A MOTION by Vice-Mayor Howard to approve the notice of termination letter be sent to Sunflower Electric Power Corporation and Prairieland Electric Cooperative respectively and authorize the Mayor to sign seconded by Commissioner Myers.  MOTION carried on a VOTE of 4-0.
5. Resolution 2025-17 Authorizing the execution of an energy management project (EMP) agreement between the City of Goodland and the Kansas Municipal Energy Agency relating to the coordination of generation and purchase of electricity – Paul Mahlberg, General Manager of KMEA, stated, this agreement is a collaboration with 15 other cities. Through this process we will work with you on your power supply and develop a power supply portfolio that you desire. Mayor Showalter asked Mr. Mahlberg if KMEA would be able to assist us with an early buyout of our current Sunflower contract. Is that assistance that you provide or is there any way we could discuss it? Mr. Mahlberg stated, this would be an action our general counsel could assist the city with. Kent stated, this is a contract approving the structure of how the City and KMEA with interact, the actual power supply contract will be discussed at a later date. Vice-Mayor Howard asked does this format give the city better buying capacity? Mr. Mahlberg stated, this is why KMEA exists, similar to the large-scale solar project. The city would not have had the opportunity to participate in the large scale solar project; but, the involvement of 34 cities made it possible. ON A MOTION by Mayor Showalter to approve Resolution 2025-17, authorizing the execution of an Energy Management Project Agreement between the City of Goodland and the Kansas Municipal Energy Agency relating to the coordination of generation and purchase of electricity by the City of Goodland from the Kansas Municipal Energy Agency and other member cities. seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 4-0.

DISCUSSION

1. 2026 Budget Presentation – Utility Funds and Remaining Funds – Kent stated, objectives of budget are to have balanced budgets with secure reserves, sustainable operations, investment in staff, facility and infrastructure improvements and diversify revenue base.

In the Electric Utility, revenues remain level and not a big increase from last year.  Budgeted revenue is not a lot different from 2019, actually less than 2016.  On production side, funding personnel at basically same level.  Contractual is unchanged with big ticket items such as our power contract. Insurance increased a large amount.  Commodities increased about $1500.  Transfers to CIRF for portions of roof replacement. Transfers to MERF are portions for switch gear for 3 phase sub and IT backbone. Some actions to mitigate expenses include reconsidering the frequency of maintenance runs on engines and maintenance mode more often.   

In distribution, personnel are same and again increase in insurance costs.  Commodities are up with construction material going up and other minor increases.  Capital is steady to keep replacing old meters.    Transfers to CIRF reduced to $230,000 for building on the 7-mile tie in and south loop and $10,000 set aside for pedestrian crossing lights on Caldwell. MERF set aside $53,770 to replace units 19 and 20. Staff looks at ways to control costs and supply issues whether through cooperation with other municipalities or Co-ops. Dustin is in conversation to become a KMEA utility warehouse.  Delivery on replacement equipment is up to two years.  It is difficult to manage budgets with supply chain issues, orders are scheduled months and years instead of weeks.  

Commercial and general is for office staff and billing.  Personnel services have decreased because of staff changes. Contractual have increased in professional services for software.  Commodities have a slight decrease and Capital Outlay and MERF remain the same.   

Misc. and Reserve Fund (32) have transfer to general and compensating use stays the same. Reserve in the electric fund is declining. The amount in reserves would not pay for any large items, equipment or projects such as 7-mile tie, new substations or replace a generator engine.

In Water Utility, revenues remain unchanged for service and sale collections.  The cash balance is on a general downward slope. In production, personnel costs are steady, insurance costs are up and commodities are the same. Transfer to CIRF is for water plant update, water tower maintenance and paint, drill well in Memory Park and well repairs. MERF is for IT backbone. 

In distribution, personnel decreased but need to keep personnel around. Contractual increase due to insurance and commodities have no change.  Capital outlay is $10,000 for parts, and meter replacement. We have a bond payment in CIRF transfer for a bond that does not mature until 2036.  We continue setting money aside for other improvements. 

The water fund has a transfer to the General Fund to keep property taxes down.  There is also a clean water fee assessed by the State.  The reserve fund is getting close to $350,000 at the end of 2025.  This is not close enough to replace a water tower or treatment plant. We need to assess rates annually and continue maintenance on aged equipment.  Water tower improvements for our contract are starting this fall.

Challenges next few years are new EPA lead and copper regulations requiring more sampling.  In addition, they require us to replace 3% of lead water lines annually.  We need to continue training staff for certifications and insert valves in the system to prevent shutting down a larger area than needed. We need to purchase water rights near city limits.  Last year we made changes in our state water rights to reconfigure current wells.  We have 254 fire hydrants with the oldest hydrant at 8^th and Walnut.  Staff continues working on addressing two-inch water lines and dead-end lines and mains. Need to complete water master plan of the system to assist with future projects and priorities.

In Sewer Utility, annually we have a conservative increase of twenty cents per year which does not generate much revenue.  Cash balance remains low.  In treatment, the supervisor is now paid half from sewer.  We have an increase in commodities for vehicle maintenance.   In collection, budget remains basically the same with an increase in insurance.  There are CIRF and MERF transfers for improvements.  Challenges are the system has been neglected for a number of years.  We completed a lining project in 2023 and will address other locations, hopefully in 2026.  The waste water plant has variable drive for the blowers. It would be nice to have dissolved oxygen probe and the SCADA computer for another area needing upgrades.

In Health and Sanitation, no changes in the revenues, we do have a reduced transfer to the general fund.  This decrease is because of the reduced service, we are down to about $50,000.

The reserve funds, CIRF, MERF and GIRF, have money transferred from individual departments. These final amounts depend on decisions for budget. The CIP lists all improvements and equipment transferred into the fund.   

In Employee Benefit Fund the ad valorem tax will be more than 2025 and will cost more than the valuation increase alone. Health insurance was reduced to 5% increase – but then revised to 7% increase in budget.  We will see if that is what occurs in 2026.   

Self-Insurance Fund, is because our health insurance is partially self-insured. Any incident or surgery up to $40,000 comes from this fund.

Airport fund has no change in the revenue or expenses.  There is a small amount of property tax attached to the airport to help pay for our share of grants.

Library Fund is a tax applied to the library for library and library employment benefits.  There will be a slight increase in 2026. City commission does not approve details on expenditures.

Bond and Interest Fund, a tax fund that is slightly less in the mill rate required in 2026 than 2025. Only two more years until the street improvement issue is paid off.

Cemetery Improvement fund revenues are from lot sales and burial permits.  Expenditures are for buffalo grass, fence and building improvements.  There is also a transfer to CIRF for purchase of land for the expansion of the cemetery. 

The Law Enforcement Trust Fund, used to be revenue from drug forfeitures.  With recent court ruling and legislation, revenues from drug seizures will go away.   

Fees collected in the Municipal Court Diversion Fund have decreased.  Funds are used to purchase police equipment and equipment for court. 

Special Highway Fund is revenue from the gasoline tax according to KSA 79-3425 to chip seal streets.  In 2026, we will have $165,000 for chip seal projects.

Per Statute, Special Park revenues are half the liquor tax funds received.  The other half is receipted to general fund.  We use this for park improvements just like the resurfacing of the pickle ball court.

VIN Inspection fund revenues are fees for vin inspections done by the police department.  This fund is used for training, supplies and a small portion for ammo and police equipment.

Our main question for the Commission is on property tax funds.  Staff has made some reductions; however, to meet same mill rate as 2025 budget there will have to be about $437,180 in additional cuts.  To meet RNR, we will need to cut $489,803 total from the 2026 proposed budget.    Staff needs direction, do we meet RNR with inflation costs of materials and equipment.  Do we send the request to have a hearing notice?

How do you pay for increased costs if property, sales and user fees are not increasing. You directed staff to identify the critical pieces from the 2026 budget. We did identify $434,000 to cut basically from revisions to 2025 for the rest of this year for part of it and then stuff in 2026.  We got $434,000 worth of potential cuts, which is close to that goal of $437,180. That was mentally tough just to get to the $430,000 level. However, staff didn’t continue adding to that list to get to the RNR level until there would be Commission direction. 

Staff then put together a list items put back in the budget if we wanted to go a little bit higher. Some of those things that we put back in where items we had cut. $15,000 for painting the Van Gogh easel, it’s getting to the point where it needs to be done. Set asides for $10,000 for building a dog pound, $9000.00 for roofs at the armory building and museum, $7500.00 for a Grant writer and increased health insurance from 5% back up to 7%. The set asides for the dog pound, the roofs and the additional amount for grant writer are just portions for those items.  The budgetary amount is not the entire project cost. We added $50,000 for commercial demolition. This is an additional cost because as mentioned at last meeting, there may be four different commercial properties that will need demolished soon. $50,000 for Salaries in three areas, $14,000 put aside for street equipment and $2500 for park equipment. These along with a couple of other small things add $175,209.00 back in. These are critical items that would put total mills at 54.949, compared to 50.923. The question for the commission is what do we want to publish or what do we want to send to the county clerk for the RNR notice? A decision would need to made tonight, but then we’ll need to have a short meeting to approve the resolution to send to the county within the next week, on or before July 20^th.  Vice-Mayor Howard stated, in my opinion we cannot keep cutting and taking things out and keep running the city the way people like.  Mayor Showalter stated, residents know that cost are up right now and there’s no way for us not to have some kind of increase.  I would like to get to a point where we can stop the decline in the reserve funds and start building those back up so we can focus on projects that we need. I believe the direction for city staff is to notify the county we will not be able to meet the RNR this year.  Commissioner Artzer and Commissioner Myers agreed with this direction.  Kent asked for direction on the number you want to present to the county on the RNR as well as what time to meet so staff could create the resolution and give the public notice of the meeting.  The commission agreed to meet on July 14^th at 5:00 p.m. to sign the resolution for the RNR resolution.  Commissioner Artzer asked, what is the difference between a mill level of 50.923 and the 54.949? Kent stated, on a home with a value of $150,000 the difference would be $54.94 a year.  On a home with a value of $200,000 difference would be $92.00 a year.  Commercial businesses would run higher because they are charged 25% on the assessed value. Commissioner Artzer suggested an even number, for example 55 mills. There was a consensus of the commission to move forward with 55 mills. 

REPORTS

1.  City Manager – 1. Manager Memo is included in packet. 2. June Month End fund balances, Municipal Court – 2^nd Quarter Report and Building Inspection – 2^nd Quarter report are in packet. 
2. City Commissioners

Vice-Mayor Howard – 1.  Thanks staff for their work on the budget.

Commissioner Artzer – 1.  No Report

Commissioner Myers – 1.  No Report

Commissioner Redlin – 1. Absent, no report

Mayor Showalter– 1.  Received a call from a Resident expressing their gratitude for the water project done on Walnut.

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Myers seconded by Vice-Mayor Howard.  Motion carried by unanimous VOTE; meeting adjourned at 6:36 p.m.  Next meeting is scheduled for July 21^st, 2025.

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ATTEST:                                                                                Jason Showalter, Mayor

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Shauna Johnson, Deputy City Clerk