June 15, 2026 Commission Minutes

GOODLAND CITY COMMISSION

Regular Meeting

June 15, 2026                                                                                                                        5:00 P.M.

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

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

Mayor Showalter led Pledge of Allegiance

PUBLIC COMMENT

CONSENT AGENDA

  1. 06/01/26 Commission Meeting Minutes
  2. 06/08/226 Special Commission Meeting Minutes
  3. Appropriation Ordinances: 2025-12, 2025-12A and 2025-P12

ON A MOTION by Commissioner Redlin to approve Consent Agenda seconded by Commissioner Artzer.  MOTION carried on a VOTE of 5-0. 

PRESENTATIONS & PROCLAMATIONS

  1. Options Domestic and Sexual Violence – Dawn Gabel from Options stated, we serve Northwest Kansas with offices in Colby and Hays.  Dawn provided information on services provided in the Sherman County Profile to the Commission.  Dawn stated, we provide services to people in Sherman County for sexual assaults and domestic violence.  Our funding is from the distribution of money collected on fines.  However, there is a 20% gap in our funding where we seek private donations.  We are asking for $3,000 in our request if possible.  Commissioner Cloyd asked, we have donated $1,800 in past but you are asking for $3,000, why the difference?  Dawn stated, we ask for $3,000 but you have only funded $1,800 in the past.  Our gap in funding is approximately $200,000 for private donations.  Commissioner Artzer stated, we appreciate your services, I cannot imagine what you deal with.  Mayor Showalter stated, thank you for coming at this time, it is easier to address during budget. 
  2. 2025 Audit Report: Harold Mayes, Agler & Gaeddert – Harold stated, the city applies for a GAAP waiver annually and based upon the guidelines you follow, you have a clean audit.  Overall unencumbered cash increased from $13,654,989 to $21,899,246 in 2025 due to the sales tax bond issue for 8th Street Project at the end of the year.  Harold reviewed the summary statement of receipts and expenditures for the city.  Airport Improvement fund remains a negative balance because the city is waiting on reimbursement of federal grant funds.  Generally, it is a violation to have a negative cash balance, but not when you are waiting for grant reimbursements.  Utility fund balances are down; however, we look at cash balance compared to 3-month period of expenses.  The electric utility is just short of 2 1/2 months of expenses in the cash balance. Water is 3 1/2 months of expenses; Sewer is 4 months and Health and sanitation is just $2,000 short of 3 months of expenses in their cash balances.   There is no statute requirement to maintain that balance, but smart business in the event of an emergency.  There are no statute violations for budget purposes.  We feel controls are followed and receipts are properly accounted.  Commissioner Artzer asked, what is the penalty for a statue violation?  Harold stated, they have sent letters; I have never seen penalties assessed.  Mayor Showalter asked, what do feel we should focus on during budget?  Harold stated, your utility funds and building up cash balances.  Based on our testing there are no issues with controls.   

ORDINANCES AND RESOLUTIONS

  1. Public Hearing relating to the proposed issuance of Taxable Industrial Revenue Bonds (Golden Waves Grain) in a principal amount of approximately $225,000,000 (the “Bonds”) and in regard to an exemption from ad valorem taxation of property constructed or purchased with the proceeds of such bonds –Kevin Cowan, Gilmore and Bell Bond Counsel, stated, the public hearing is related to granting a property tax abatement on Golden Waves Grain project.  The governing body approved a TIF resolution for the Industrial Revenue Bonds in May.  Before you can consider granting a property tax abatement, statutes require not only a public hearing, but notice of the public hearing published and delivered to other taxing entities and a Cost Benefit Analysis prepared and available in connection with the property tax abatement.  There is a lot of information in the analysis to discuss.  Based on input from the company, the project is estimated at $225,000,000 when you factor in land acquisition, building improvements, equipment and city’s consideration of property tax abatement that is 90% for years 1 through 3, 85% for years 4 through 6, 80% for years 7 through 8 and 70% for years 9 through 10.  This is a partial abatement authorized by the governing body entering a contract for payment in lieu of taxes which is the converse of the above abatement, i.e. 10%, 15%, 20% and 30%.  The analysis report was conducted by Wichita State University.   The summary shows a present value of net benefit to the city is $2,770,044 over 10 years.  Public benefits are $11,167,711 and public costs are $8,397,667, for a benefit to cost ratio of 1.33 for the City of Goodland.  Your benefits are the payments in lieu of taxes they will pay.  This analysis factors in that there will be employee’s earning good wages and shopping in your community that will generate economic activity.  The State benefit to cost ratio is higher because they do not have costs from the abatement of property taxes.  The State will benefit from the economic activity and increase in income and sales taxes.   The school district is simply a wash.  They have one tax that cannot be abated, then they benefit from increase in students.  The 20-year numbers are more useful.  You are offering incentives for the company to exist long term.  Most costs are incurred in the first 10 years so the benefit cost ratio gets better for the 20-year analysis.  Your ratios based on these calculations are good so your incentives are good.  The benefit to cost ratio is 2.29 for the City, 2.19 for Sherman County and 5.23 for the State at 20 years. All information is based on input from the company.  Statute requires a benefit analysis be done before governing body can approve property tax abatement.  It does not require the analysis show anything in particular.  The public hearing is required to give people time to ask questions about the project.  Commissioner Artzer asked, do you run analysis often?  Kevin stated, the analysis is run by a 3rd party since I am bond counsel for the City.  I am familiar with the documents.  Commissioner Artzer asked, is this analysis normal or about average?  Kevin stated, it is probably better than average.  In the past I have seen a lot of housing analysis and this is definitely better than those because of economic activity generated. 

Mayor Showalter opened the public hearing relating to the proposed issuance of Taxable Industrial Revenue Bonds (Golden Waves Grain) in a principal amount of approximately $225,000,000 (the “Bonds”) and in regard to an exemption from ad valorem taxation of property constructed or purchased with the proceeds of such bonds at 5:38 p.m.   Brian Linin co-founder of Golden Waves Grain project stated, I am willing to provide whatever information commission wants for project.  Mayor Showalter asked, has there been any changes from your initial plan to the current business plan and job forecasts?  Brian stated, we have been working on this for six years and a lot has changed.  Our initial plan was a flour mill but realized there is no value to selling another commodity so pivoted to baking bread.  We are working with Associated Wholesale Grocers (AWG) with a letter of intent to distribute our product.  They determined it is more beneficial to have a dedicated bun line to produce.  Today we have about $25,000,000 to $30,000,000 in private equity raised and need to get that to $100,000,000.  We have talked to numerous banks and have a term sheet from Sunflower Bank and in process of getting a term sheet from CoBank.  We feel we need about $150,000,000 in loan funds to pair with private equity to complete project.  We are confident if we get commitment from the bank we will get remaining funds. The bank is requesting a letter of commitment and not just a letter of intent from AWG for volumes needed to make loan work.  Hutton Construction has given us a maximum number for engineering on the project. There is a few more things outside of Hutton’s scope that we will have to have completed. We are using all Kansas companies for project.  Hutton out of Wichita for the general contractor, Coperion a bakery company headquartered in Kansas City, Kice Industries headquartered in Wichita is responsible for the flour milling and grain handling equipment. We received a big incentive package from the State and the City’s package is generous.  Mayor Showalter asked, what timeframe are you looking at?  Brian stated, if funding is secured by July 1st, all bids received are secure until then and we plan to have ground breaking in August, with plant up and running in January 2028.  Commissioner Cloyd asked, based on timeline, when will you start to employ people?  Brian stated, we currently have hired a CEO from KSU Milling School, then our Food Scientist has been developing and refining our bread recipes.  We leased a facility in Plano, TX to bake our breads.  We will continue to hire as process moves forward.  Commissioner Cloyd stated, this could bring more people to our community.  Brian stated, yes, especially through construction.  Hutton Construction will have quite a few people here during construction of the 230,000 square foot building. Brian then presented a video that showed a rendering of the proposed facility and showed views from every direction on the outside of the facility as well as moved through all the corridors for the public on the inside of the facility.  The idea is to showcase our building and inform people why wheat is important.  This will attract people to visit our community.  Mayor Showalter asked, will you have QR codes on each product to show where the bread came from?  Brian stated, yes and no one can do that with bread today.  Commissioner Cloyd asked, will bread mainly go to grocery stores or will it also go to restaurants?  Brian stated, initially product will go through stores AWG services in this area.  Mayor Showalter asked, will you sell product from the building?  Brian stated, we looked at it, but have not been able to work out details.  We have a local business interested in selling the product for us.  Mayor Showalter closed the public hearing at 5:54 p.m. 

FORMAL ACTIONS

  1. Home Occupation Permit: 719 Center Avenue – Zach stated, the Planning Commission held a public hearing June 9th for a home occupation permit at 719 Center Avenue for a nail salon.  The Planning Commission unanimously approved the permit and recommend approval by City Commission.  Elaina Mason was present and discussed operation of her business.  ON A MOTION by Commissioner Redlin to approve the home occupation permit at 719 Center Avenue for a nail salon seconded by Commissioner Cloyd.  MOTION carried on a VOTE of 5-0. 
  2. Conditional Use Permit for 718 Caldwell Avenue – Zach stated, the Planning Commission held a public hearing June 9th for a conditional use permit at 718 Caldwell Avenue for the use of an apartment in the C-1 District.  An apartment is not allowed as a permitted use, only as a conditional use in a C-1 District.  The planning commission unanimously recommended approval to the City Commission of the conditional use permit for the use of an apartment in a C-1 District. Zach stated that the owners want to build apartment on top of business and use the building as storage.  Zach stated that the conditional use permit does not transfer to a new owner if the property was sold. A new owner would have to make application to continue to use the apartment on the property.  Commissioner Artzer asked, can they rent out apartment?  Kent stated, we do not have an exact answer for that question because the code does not specify clearly on that topic.  They have to own property for the conditional use permit to exist.  Commissioner Cloyd asked, if property sold in future and new owner does not get a conditional use permit, can they live there?  Zach stated, they would have to use for business purposes without permit.  ON A MOTION by Commissioner Redlin to approve Ordinance 1822 granting approval of a conditional use permit at 718 Caldwell Avenue for the use of an apartment in the C-1 District seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0.
  3. Acceptance of 2025 Audit Report – Kent stated, commission needs to accept the audit so it can be filed with the State of Kansas.  ON A MOTION by Mayor Showalter to accept the 2025 Audit Report seconded by Commissioner Redlin.  MOTION carried on a VOTE of 5-0.
  4. Quote to repair Waterslides – Kent stated, we have been looking for a company to restore slides and it has been a difficult process.  Fiberglass Restoration, LLC submitted a proposal.  Both slides at the water park need restored.  They are the original slides which were patched after the 2016 Hail storm and minimal repairs annually by Danny.  Material, color and seams continue to deteriorate each year.  Funds are set aside in MERF and CIRF to pay for repair.  They are safe to use right now but we want to get on vendors schedule after swim season to complete before next season.  Commissioner Cloyd asked, is this the first major repair since installed?  Danny stated, in 2016 we had a company work on blue slide, but yellow slide also needs repaired.  Kent stated, after the hail storm the work was on exterior but not sure did a lot of work on inside.  Commissioner Artzer asked, what is age of slides?  Kent stated, they were put in when built in 2001.  Commissioner Artzer stated, this gets our project on their schedule after season?  Kent stated, yes.  Vice-Mayor Howard asked, are there other repairs needed with reserve money?  Kent stated, there are but we have to prioritize them.  Baby pool and stainless-steel gutter are concerns that need addressed, but slides are the priority.  There are more smaller projects.  Danny stated, we have one more stainless-steel seam to weld and will need to paint in next year or two.  There are always items to address.  Commissioner Artzer asked, do slides get used?  Danny stated, yes.  Commissioner Cloyd stated, it will be good so we can have people come to town and take advantage of pool.  Kent stated, we have had people talk about replacing them but that is too expensive.  ON A MOTION by Commissioner Redlin to approve the proposal from Fiberglass Restoration, LLC in the amount of $51,000 to repair and restore slides at Waterpark seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0.

DISCUSSION

  1. Progress Update on 621 W. 17th Street – Zach stated, our last discussion was three meetings ago.  They have completed the joists and floor boards.  Tonight, you need to outline items they need to complete and give them a new deadline.  Mayor Showalter stated, I feel we need to get to a place where you get the project done.  We need to determine what is needed to end the project.  Bertha asked, what is the deadline?  Commissioner Cloyd stated, the property needs to be complete by the next deadline.  What remains to be done?  Zach stated, the windows, painting or siding and exterior yard.  Once those items are complete, they need to finish inside for property to be lived in safely.  Bertha stated, we do not know how long it will take.  We also have yards to take care of at this time so we do not get nuisance notices.  Ruth Ontiveroz, also property owner stated, we believe it will take the summer.  Mayor Showalter stated, the process we have gone through with your property is different than any other property and the work needs to get completed.  I want to ask the City Attorney what we need to do to bring process to completion by next deadline.  We have to get this behind us.  We will discuss with Jake so that the next meeting we can have a date.  We have been more than fair with the process for your property to date and need to get back on track.
  2. Water Conservation – Review City Code and Drought Monitor – Kent stated, the drought monitor included in your packet for Sherman County shows decreased conditions because of recent rains.  We have provided history for the past four years.  In April of this year, we started with almost double the water production than in previous years.  Usage in May increased, but not much different than the past.   For the first eleven days in June citizens have used 11M gallons.  We need to keep reminding people of conservation. Kent urged customers to not water in the middle of the day and be conscience not to water the street.  We currently have no restrictions but may be back to look at rates because the State of Kansas and Groundwater Management District are requiring additional restrictions for Municipalities. Commissioner Artzer stated, I have had positive feedback on Kent being on the radio morning show and Shauna providing a conservation program to Ambassadors.    
  3. Follow-up on Prime Craftsman Homes presentation from June 8th Meeting – Kent stated, information from the housing presentation is in the packet.  Staff is asking commission for direction.  Commissioner Artzer stated, I am in favor of completing trial phase to see how program is accepted.  We cannot commit to 78 houses until we know the public response.  Commissioner Cloyd stated, I was impressed with quick process to build the homes.  There may be some revitalization programs available to assist people purchase homes.  If we move forward, I feel we need to consider language in contract so purchaser does not turn around and sell home to make money.  Commissioner Artzer stated, he indicated we can put that information in agreement up front.  Mayor Showalter stated, our commitment is $37,500 up front, right?  Kent stated, yes, the developer is asking us to work with Professional Engineering Consultants (PEC) and Prime Craftsman Homes to get development estimate to extend streets, utilities and complete plat process.  This will get concrete numbers for a bond issue.  We created the RHID for the two lots by Topside Manor as well as the city owned 35-acre parcel to the west of Topside Manor.  The RHID designation allows us the opportunity to use their property taxes to pay for infrastructure improvements on the land.  We have a good setup where the 2 lots to the north already have street and curb but will need to extend sewer and water to service property.  The $75,000 is to outline estimate for extension of utilities, streets, drainage, etc. in order to move forward on project.  Mayor Showalter asked, how does land ownership play into program, will it help leverage some of these costs.  Kent stated, it could. Housing developments usually have special assessments to pay these costs.  Goodland has not had a major development in a number of years. This is a large cost at one time to determine if feasible.  Mayor Showalter stated, this is another step resulting from meetings few years ago on housing study.  I had local contractors reach out to me with negative feedback.  This may not be the best plan but it is the best plan we have to move forward to address housing issues.  Commissioner Artzer stated, keeping cost of homes below $200,000 is what people need.  Commissioner Cloyd stated, I think about Golden Waves Grain and people coming to town will need housing at reasonable prices.  We want them to stay in Goodland and not go to surrounding communities.  Vice-Mayor Howard stated, there will be people who want custom houses and some that want the modular homes.  This will be a start to help resolve the housing issue.  Commissioner Artzer stated, I agree this is a step to help issue; even though it may not be the best.  Commissioner Cloyd asked, do we have money in the budget?  Vice-Mayor Howard asked, can we use the price of the two acres as leverage?  Kent stated, I can ask but they need resources up front to pay engineers.  Mayor Showalter stated, we have money set aside for commercial demolition that we may not be using right away, so we can use those funds.  Kent stated, that is correct and funds still used for housing.  Consensus of commission is to move forward obtaining information on program.  Kent stated, Staff will work to get a contract for the Commission to consider moving forward.  Commissioner Artzer asked, can we get feedback from projects in other communities they referenced?  Kent stated, I will be in Wichita later in month and can look at Valley Center project and the production facility in Wichita. 
  4. Draft 2027 Budget Presentation: Rest of General Fund, Utility Funds and remaining funds – Kent stated, tonight we will start with remaining funds in the general fund.  In General Administration personnel are budgeted with step increase and 3% COLA like other funds.  Costs continue increasing like insurance and building maintenance on this building.  Roofs for this building and the museum are showing age, so we started to set aside funds.  There are concerns at the Wolak Building with a door and the roof; along with the lift at the Art Center not working.  We will only inspect the Van Gogh this year to determine what repairs need to be done, then restore in 2027.  Building Inspection shares an employee with City Manager and Municipal Court.  The budget includes tree, nuisance and weed abatement.  There are funds set aside for trees and housing nuisances in CIRF and started reserve for commercial demolition of property.  Museum will have changes and reorganization of personnel beginning in 2027.  Education and programming budget is stretched and we began setting aside money to replace the roof and alarm system.  Economic Development meets requirements of agreement with SCCD.  They are not requesting additional funds in 2027; this may change in future years.  City owns the building used by SCCD.

In the Electric Utility fund, revenues have remained at the same level since 2019 because rates have not changed.  We adjusted rate structure to resolve OCA issue in 2025 but change was not to increase revenue.  We will have presentation from Waterworth in August.  Rates for Goodland are middle of the road for commercial customers and a little higher than average for residential customers amongst 67 communities in Kansas in a KMEA survey.  The big-ticket item in production is power purchased where we will be changing to KMEA in 2027.  It is hard to know what will change at this point.  We will have ability to run plant and get paid for our services.  We have signed two contracts with them to date.  One is the solar project for 2MW that will cover about 15% of our needs.  The larger contract is the fixed energy 5X16 annual peaking of 5 MW to cover Monday through Friday from 6:00 a.m. to 6:00 p.m.  and covers about 40% or our needs.  That leaves about 40-50% of our needs to SPP.  All this is before Golden Waves Grain is online.  We have started to have conversations with KMEA on additional power.  We will go from a peak load of 12-13 MW to 24 MW, which leaves a big gap to cover.  If we do not spend the budget, funds remain in the utility fund.  Distribution is maintaining personnel and insurance continues to increase.  Construction material costs are increasing because electric costs are increasing.  Dustin is getting an estimate to purchase one of the vehicles set aside in MERF because anticipate 2-year delivery.  We continue evaluating ways to control supply chain issues.  The biggest challenge is price for new equipment has increased.  We need to assess new units for capacity with the new grain mill and bakery because we do not have adequate capacity.  Commercial & General is for office staff.  Professional Services has decreased because electronic transaction fees are now paid by customer.  One big question for electric is the transfer to general fund as this will also affect that budget.  Electric Reserve was about $528,000 in 2025.  We do not want balance too high but that will not purchase a new generator unit, substation or replace significant damage along the 7-mile tie line. 

In the Water Utility the commission passed an ordinance for 2% increase in revenue.  We will know more at end of summer and will have an update from Waterworth in August.  Conservation requirements may require additional rate.  There are not many changes other than the Transfers to CIRF.  With Distribution, we need to keep personnel around and materials costs continue to increase.  The transfer to general fund assists funding the general fund.   We are looking at proposal to paint interior and exterior of south water tower.  Challenges for water are aging equipment, additional EPA regulations for lead and copper, training of staff and need to purchase water rights.  Fire hydrants are aged and need to continue the replacement program. 

Sewer Utility has a minimal increase of 20 cents per customer per month in revenue each year.  It will be difficult to make the transfer to the general fund in 2027 and the reserve fund is treading water.  Challenges for Sewer is that it has been neglected and additional maintenance is needed at the plant, lift stations and mains. 

Health and Sanitation is a contracted service and we need to monitor the cash balance to have reserve needed in an emergency.  Contract allows for an increase with increased diesel prices above a certain point, which will occur with current diesel prices.  Current contract is up for renewal 2028. 

Other funds for the City are MERF, CIRF and GIRF which are reserve funds to purchase capital items.  In Employee Benefits fund we budgeted an 8% increase for health insurance.  Other benefits paid from the fund are KPERS, Social Security and Unemployment Insurance.  The Self Insurance fund is for our portion of claims because we are partially self-insured.  There are two airport funds.  Airport Improvement is for the accounting of projects and grants from FAA and KDOT Aviation.  Airport Fund is for the local share on projects and grants.  Library gets money from the city.  Ordinance 1554 limits total amount to 6.75 mills.  The request from the library has been increasing in recent years and again this year.  We have no authority over the amount requested.  Bond and Interest is to pay off the street bond from 2017.  The issue will be paid off in 2027.  The commission needs to consider another project for future to continue levy.  With the Law Enforcement Trust Fund the recent court rule limits forfeitures and impounds allowed in this fund.  Municipal Court Diversion Fund is for fees collected on diversions which have decreased.  Special Highway is gas tax money from passed down from the state and our main source to chip seal streets.  It is decreasing while costs are increasing.  There is also a transfer to CIRF from Street and Alley to assist with street sealing.  Special Parks is the liquor tax split ½ to General Fund and ½ to Special Parks.  We have used funds for park improvements.  Vehicle Inspection Fund is money from vehicle inspections by the Police Department. 

Questions to the commission is direction on the ad valorem level to fund the budget.  Do you want to attempt to meet the RNR (revenue neutral rate)?  To meet the same ad valorem rate as the 2026 budget, the budget would require an additional $154,563 in cuts (or additions to revenue).  RNR would have to be $175,860 in cuts from its current form or somehow that same amount in revenue.  It is closer this year than in the past.  With inflation costs on supplies, contracts and projects and increased employee costs, what is reasonable?  We will present options at next meeting but we request direction from the commission.  Department heads have done a good job to get budget to this point.  Mayor Showalter stated, I appreciate the department heads putting in time needed to get budget information together.  Kent stated, we have to inform County Clerk of our intention with RNR before the second meeting in July since that meeting is scheduled for July 20.   

REPORTS

  1. City Manager – 1.  Manager memo, May month-end Fund Balance Report, Police Monthly Activity Report and Building Official update are in the packet.  2. Neal stated, Johnson Services was here to clean and inspect the sewer.  The next part of the project will be to replace lining and point repair.  We have had troubles with manhole behind Tequila’s so we added it to the list.   3.  The EDA Grant is progressing for utility extension for Industrial Park.  We do not have major news to date.  The Congressional Directed Spending request is also progressing.  4.  We are preparing to have a presentation on water and electricity from Waterworth in August.
  2. City Commissioners

Vice-Mayor Howard – 1.  No report

Commissioner Artzer – 1.  Thank you staff for work on budget.  2. I was approached by someone on Library Board that they were not on the directional signs but would like to be included.  They have never been on signs in the past. 

Commissioner Cloyd – 1.  I attended flag celebration in Chambers Park Saturday, there are quite a few weeds in park if we can address them.

Commissioner Redlin – 1.  I feel it would be good to have SCCD come to a meeting to discuss their plans for upcoming year.  I would like to see more of their key performance indicators.     

Mayor Showalter– 1.  No report

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Redlin seconded by Vice-Mayor Howard.  Motion carried by unanimous VOTE; meeting adjourned at 7:45 p.m.  Next meeting is scheduled for July 6, 2026.

_____________________________

ATTEST:                                                                               Jason Showalter, Mayor

_______________________

Mary P. Volk, City Clerk

Leave a Reply