Committee reviews city investment report and outlines options for unallocated reserves; schedules aggressive FY26 budget calendar

Lee's Summit Finance and Budget Committee members on Tuesday received the city's quarterly investment report and discussed options for spending unallocated general fund reserves that exceeded the city's upper policy threshold.

Cash management officer Brockhouse reported the market value of the city's investment portfolio for the quarter ended Dec. 31, 2024, was $301,371,592. She said about 6.5% of that — roughly $19,634,364 — are general obligation bond proceeds not yet expended. Portfolio composition reported: 75.3% U.S. Treasury securities, 8.78% government agency securities and 9.41% demand deposits. By maturity, she said 37.8% mature in less than one year, 34.5% in one to three years and 27.7% in three to five years. The quarter's purchases had par value of $27,000,000 with yields ranging 3.63% to 4.365%; maturities totaled $16,000,000 with yields from 0.522% to 0.954%. Brockhouse said the portfolio shows a paper mark-to-market gain of $3,065,399.52 as of Dec. 31.

Assistant City Manager Donna Lake briefed the committee on unallocated general fund reserve policy and recent council decisions to invest excess reserves. The city policy sets a reserve floor at 25% and an upper threshold of 35% of the general fund. Lake said council approved cash-funding $10,000,000 for the Green Street Market rather than issuing bonds, and allocated $2,800,000 to the vehicle and equipment replacement program to address shortfalls identified in a recent study. Council also committed $300,000 toward south and east gateway monuments, and the Industrial Development Authority pledged $150,000 toward those monuments, Lake said. A proposed $100,000 communication strategy plan is in scope review before an RFP. Lake said additional items under consideration — not yet approved — include $1,000,000 for the sidewalk gap program, potential support related to the 2026 World Cup, and purchase/improvements for the Browning property; she estimated the list totals about $4.5 million if pursued.

Lake said the council's choice to cash-fund the Green Street Market was intended to avoid long-term debt-service costs to the general fund.

Budget calendar and ERP migration

Lake and staff outlined an accelerated FY26 budget timeline tied to the city's ERP transition. Department budget meetings begin the week of March 3; the schedule anticipates two Finance & Budget Committee meetings in April (including April 21) and a May 13 public hearing with second reading and adoption aimed for the May 20 full council meeting. Staff said the earlier timetable and adoption are needed to load FY26 budgets into the new enterprise resource planning system and complete testing before the July 1 fiscal-year go-live.

Ending

Committee members were invited to suggest priorities for remaining reserve spending; staff will return to council with formal proposals as needed. The investment report was informational; no committee action was taken on the portfolio.