Finance committee reviews FY26 proposed budgets for special revenue, capital and enterprise funds

Budget Manager Eric Stoyanov presented the Finance and Budget Committee with the proposed FY26 budgets for special revenue, capital projects, debt service and enterprise funds on May 13.

Stoyanov said capital project timing drives much of the year-to-year change in the total proposed budget and that major FY26 projects include the joint operations facility for police and fire, Douglas Street improvements, a prior widening project near 150 Highway and Hook, and a new terminal building at the airport. He said the FY26 capital program totals about $127.9 million and that no-tax-increase bond projects account for just under $39 million of that figure.

In special revenue funds, Stoyanov identified parks and the public-safety sales tax as the largest items. He said Legacy Lake dredging is scheduled for FY26, design funding appears in the budget for a field house, and park-development spending accounts for an $8.4 million increase. He also noted Missouri's minimum wage increase from $13.75 to $15 per hour as a driver of operating cost growth.

The presentation included a new FY26 line for Green Street operations of $505,000. Stoyanov said that amount covers security, custodial services, holiday lighting, programming, partial funding for a facilities maintenance worker and the facilities and event manager position at Green Street.

Business and industry fund items include public service agreements (PSAs) for Downtown Main Street, the Lee's Summit Economic Development Council and the Lee's Summit Visitors Bureau; staff noted the fund is planned to deficit spend in FY26 after several years of growing fund balance, with projected revenues around $620,000 in the current year and an estimate of about $700,000 next year tied to two hotels coming online and World Cup-related activity.

Stoyanov described enterprise fund highlights: airport spending tied to World Cup marketing and a push to become a U.S. port of entry for the event; water and sewer increases tied to cost of operations and transfers to construction funds; and consolidation of former community center funds into a single recreation fund, with Lehi Community Center budgeted about $180,000 for fitness equipment and flooring in FY26.

Committee members asked about grant monitoring after Stoyanov said the Violence Against Women Act (VAWA) grant funding is currently confirmed only through September and that Community Development Block Grant (CDBG) funding is expected to remain constant for FY26 pending official allocation. Committee members requested a written list of monitored grants showing amounts, current use and whether funds are passed through or retained by the city. The committee asked staff to return with a report and, if warranted, a presentation in July or August so council and community partners can plan for potential funding changes; council members specifically suggested notifying Hope House, the local community partner for the VAWA-funded work, so it can participate in any discussion.

Stoyanov said specific capital items in FY26 include design work on the field house, completion of several bond projects (for example, fire station roof work and city hall upgrades), and in-progress projects such as the police substation and joint operations facility scheduled to open later this year and next summer, respectively. He also noted a large FY26 general obligation principal payment of $14.4 million and that the debt service fund will show a deficit spend in FY26 but retains a healthy fund balance.

Committee members discussed timing for further review and asked staff to provide dates; staff suggested a July or August return to ensure council has time to consider alternatives if grant funding ends. No formal vote was taken on the budget presentation in committee; the FY26 budget timeline calls for a public hearing and first reading at City Council on May 20 with adoption expected later in May.

The presentation and follow-up requests were made on the public record during the committee meeting.