Exodus of high-level staff in this Johnson County city as tensions flare with council

A number of department heads and other high-level staff have resigned from the city of Shawnee, and some officials blame the exodus on tense conflicts with the City Council.

In just the past year, Shawnee lost a city manager, communications director, finance director and deputy city manager, among others. While those employees have mostly declined to speak publicly, some officials argue they left because the council majority repeatedly ignored their legal advice and recommendations.

“We have lost several quality award winning employees over the last three years with a lot of institutional knowledge and several of them taking steps down in both title and salary so they were not leaving for promotions, salary, or benefits,” Mayor Michelle Distler, who is not seeking reelection in November, told The Star in an email.

She added that the council received human resources training this year — the first to do so in her 18 years in office. The training was focused “on appropriate and effective behaviors in the workplace,” according to a memo that said, “Staff believes this training is applicable to the Governing Body.”

A couple of years ago, three planning commissioners abruptly resigned, and many said they were fed up with the City Council.

But some argue city staff needs to adjust to a new council unwilling to stick with the status quo.

Council president Eric Jenkins argued there is nothing unusual or alarming about the staff resignations. But he said there “seems to be some resistance in the staff. It goes back to this being a rubber-stamp City Council for 30 years. I think staff is having trouble acclimating to the fact that we say, ‘Maybe I don’t want to do that.’”

“There’s no animosity. There’s no sense that we don’t trust the staff on the council. It’s just a simple matter of sometimes there’s disagreements,” said Jenkins, who is seeking reelection. “It’s almost like you have a spoiled staff, saying: ‘By God, we don’t like these guys coming in and telling us what to do.’”

The City Council gained a 7-1 conservative majority in 2021, with some members, Jenkins said, “tougher than others as far as their conservatism.”

Councilman Mike Kemmling, who has served since 2013 and is now running for mayor, said in his campaign announcement the majority of the council used to be “a rubber stamp for tax hikes, reckless spending, and handouts for developers.”

But he “has witnessed the council transform from a rubber stamp for high taxes and bigger government to a council that puts Shawnee residents first.”

Shawnee council vs. the staff

Over the past year, the council slashed the property tax rate more than staff recommended, disregarding the city manager’s advice that such a big reduction would make it more difficult to fund projects. He warned it would drain the city’s reserves over several years. But the majority of the council argued residents deserved a more meaningful, immediate tax cut amid rising home values, and said the city can manage.

The new council has taken some controversial steps, including voicing support for a statewide ban on transgender athletes participating in girls sports. And it approved an ordinance limiting how many unrelated people can live together, a move that’s now embroiled in a lawsuit.

Most recently, council members pushed to change the use of a special sales tax that voters approved in 2014 to fund park acquisitions and major improvements. Now council members want it to pay for ongoing park maintenance, especially if the city ever faces an economic emergency.

But staff worried the switch could set the city up for litigation and hurt its bond rating. The mayor also has warned that some residents consider the move “shady” and “unethical.”

Last month, city staff presented the council with options for the funding, listing advantages and disadvantages.

“I really appreciate having pros and cons,” Kemmling said during the meeting. “It’s pretty rare in my time here that I’ve seen cons to a staff recommendation or pros to something they’re not recommending.”

Some believe staff members feel disrespected as the council goes against their advice. But Jenkins said, “There have been some comments made that came across as probably not as well-polished from members of the council. That have a rough edge about it.

“I don’t know if they even know it’s being received that way, quite frankly. But it wasn’t intentional like trashing the staff. It’s just the approach some have. They are who they are.”

Councilwoman Jill Chalfie, the lone Democrat, said in a statement to The Star that she does “not believe that high-level resignations of city staff over the past year are coincidental.”

“Our employees work incredibly hard to provide Shawnee’s residents with the safety, services, and amenities they expect and deserve,” she said. “Despite competitive pay and benefits, we are losing valued employees at an alarming rate. While we continue to have a passionate and dedicated team, retaining staff and improving culture should be a priority.”

Chalfie said the council should reflect on “why several long-time, professional staff have made the choice to leave the organization to work in other cities or the private sector. In the City of Shawnee’s organizational chart, the citizens appear at the top. The most important way citizens can affect change is through the ballot box.”

Other council members either declined or did not return The Star’s request for interview.

Debate over taxes

In his September resignation letter, City Manager Nolan Sunderman said, “The current Governing Body has a different path and vision for the future for Shawnee. My resignation will provide an opportunity for you to identify someone to fulfill your own separate vision.”

A couple of weeks before his announcement, the council approved an annual budget cutting the property tax rate by 2 mills. Staff had recommended cutting the rate by 0.5 mills instead, and argued the bigger reduction would drain the city’s reserve funds to a negative balance within 10 years.

Sunderman in the summer estimated the city would lose more than $25 million in that time. He said the city would need to issue bonds for budget items it would normally pay for with cash, struggle to fund new projects, including infrastructure and facility improvements, and could lose its high bond rating, which would raise the cost of borrowing.

Cutting the tax rate by 2 mills would save the average household $5.96 a month, compared to $1.49 a month from a 0.5 mill reduction.

Jenkins told Sunderman at the July meeting, “this council wants a 2 mill levy decrease,” so “I’m not sure why that wasn’t brought up that we discussed this. Because I fully expected that you were going to say that this was the proposed amount, a 2 mill reduction. I’m kind of surprised, quite frankly. I thought that was going to be right up front in this meeting, but it wasn’t right up front. So I’m kind of disappointed in that.”

Distler argued passionately against the larger tax cut, saying that during the last recession, “our fund balance is what saved us from having to lay off police officers like our surrounding cities did.”

“I want to reduce the mill levy, but we need to be responsible on how we do it,” Distler said. “Being here for the last recession, it was hard to sit up here and make these tough decisions. Here we are with another predicted recession, near record inflation … not to mention the increase in legal expenses because of all the lawsuits from the projects we denied.”

She said the city should address the community’s needs, saying the growing northeastern portion of the city desperately needs a fire station, police need a training center and residents east of Interstate 435 need curbs, gutters, sidewalks and stormwater system repairs.

Jenkins said residents will see higher county taxes despite the city cut due to rising home values. And he argued the city can handle the loss of revenue as Shawnee’s economy grows.

“I think the city’s in perfect condition and shape right now to do a 2 mill decrease,” he said. “I think it’s time to do something that actually has an impact. This 0.5 stuff, it’s like dribbles and drabs, you don’t even feel it.”

He recently told The Star that, “anybody jumping on the wagon saying ‘these guys are irresponsible cutting all the taxes,’ no, there will still be a tax increase. But we want to mitigate it.

“If the economy really shifts, then we could get stuck in a position down the road of having to add a mill levy increase. So we are risking things doing that. That would risk our political standing if we had to raise taxes. And every conservative cringes at the thought of having to do that. That would put us in a difficult position, so we’re trying to be real careful about it.”

String of resignations

Sunderman put in his notice shortly after the final budget was approved. His last day was Nov. 1.

Jenkins told The Star that Sunderman was “at odds with the council. He was going to do it his way, and by God, if the council wanted to do it another way. If you have a city manager who won’t work with the council, that’s going to be a problem. There was no effort to fire him. But maybe he figured it was best to get out right ahead of the storm.”

Sunderman, who is now the chief strategy officer for the city of Olathe, declined to speak with The Star. He said in his resignation letter that the decision to leave was “extremely difficult. I have poured my heart and soul into serving our community.”

Shawnee’s new city manager, Doug Gerber, took over in March.

Communications Manager Julie Breithaupt resigned earlier this year, with her last day March 28.

In her resignation letter, she said, “The City is going through some changes and challenges. I truly hope the spirit of staff is able to stay intact because that is exactly what makes this community as awesome as it is.”

“It’s the super long days to put on amazing events, it’s how friendly and willing staff is to answer questions at all hours of the day in person, through email and on the phone. Those are the things people remember. Those are the reasons people choose to stay here. I hope the focus stays on that as Shawnee moves forward and embraces all walks of life in our community.”

Breithaupt did not return The Star’s request for an interview.

Don Cawby resigned as the city’s finance director, effective last month. Stephen Powell, who served as deputy city manager, resigned last spring. Neither returned The Star’s request for an interview. The city also has recently lost a management analyst and a project engineer.

‘Insulting’ to city staff

Tensions have most recently flared at City Hall over whether the council will change how the city spends a special sales tax, up for renewal on the ballot in November.

Since voters approved it in 2014, the 1/8-cent “parks and pipes” sales tax has paid for park and trail improvements and acquisitions, as well as stormwater projects. But several council members are now arguing for the money to help fund ongoing park maintenance, such as mowing.

They say it would be helpful to pull funding when needed in case of an emergency.

The mayor, during a March council meeting, said she wanted it on the record, in case “an ethics complaint is filed against the Council,” that she does not agree with changing the tax’s use. Distler argued it would be seen as unethical to start using the funding for something other than the purpose that voters approved.

She read from residents’ emails she said she’s received, saying the move would be “shady.”

“When staff strongly discourages this, I would believe it is insulting for them. For a politician that doesn’t have the education or the experience in their field being discussed to say they’re willing to take the risk of lawsuits with taxpayer dollars,” Distler said.

City staff urged against changing the intent of the sales tax, mostly because it will sunset, saying it would be irresponsible to use a temporary revenue source for regular, continual expenses. Deputy City Manager Caitlin Gard also warned that using the money on maintenance could hurt the city’s bond rating, and possibly set the city up for a lawsuit because the current ballot language says the money is for “improving” parks.

“So, say, for example, we’re using money to mow our parks’ grasses and somebody sues us for misuse of funds. It has to go before a court, and a court has to say ‘improving’ land is an ambiguous term,” City Attorney Jenny Smith told the council during a March committee meeting.

“I guess I’m willing to take that risk. I think they would find in favor of the City,” said Councilman Kurt Knappen, who is running for reelection in November.

The majority of the council said it would be foolish to leave money sitting there waiting for big upgrades when they may need it for upkeep.

How to use sales tax revenue

City staff worked to find a compromise, saying the council could write a resolution stating its legislative intent for the funding to be used for capital expenses, such as playground and restroom replacement.

But the council hasn’t budged. Kemmling said in March that he didn’t want a repeat of the Great Recession, when the city couldn’t fix “crumbling” streets.

“I would like it to be usable for parks, period. Whatever parks needs, if it’s mowing and watering that year so we can afford to do the necessary things, OK,” he said, adding that he felt staff was “still saying we can spend it as long as it’s something kind of fancy and new, unless I’m reading it wrong. I mean to me this is staff giving us their recommendation.”

Last month, Chalfie pushed back, saying the council rarely gets such a strong recommendation from city staff.

“I don’t think we can sit here and say let’s reduce our mill levy by 2 and then, uh-oh, what if we fall on hard times, let’s have a caveat to use a tax that was for capital improvements and new park land to go toward maintenance because our revenue is less,” Chalfie said. Money for park maintenance comes out of the city’s general fund.

Councilman Tony Gillette responded, “I don’t see where the mill levy rate decrease from last year that our citizens received has anything to do with how we’re going to fund our parks in the future. They’re being funded properly.”

The majority of the council last month agreed it would be best to instead change the ballot language in November, so that it states the funding would also be used for park maintenance. City staff cautioned against that because it would technically be a new tax, and if that were to fail the city would lose revenue. And Gard continued to push against using a temporary funding source for ongoing expenses.

“What I’m going to anticipate happening is in one year, maybe there is an economic downturn, and then we flip this revenue to being used for maintenance,” Gard said in March. “From my experience, that’s never going to flip back. And that causes me a significant amount of concern.”

But the majority of the council argued they could specify in a resolution that they intend to only use the money for maintenance during an emergency.

Gillette said he believes residents are “smart enough to figure out” the city is essentially “proposing the same tax.”

“And I’m sure it will probably pass just as we intend it to do,” he said.

The council tabled a final vote on the ballot language at its meeting earlier this month.

Along with the sales tax question on the ballot in the Nov. 7 election, voters will elect the Shawnee mayor and four council members to four-year terms. If more than two candidates file, a primary will be held on Aug. 1.