Focus Area: Economy
Staff Contact: Jamie Robichaud / Clara Bernauer
Subject: Consideration of Resolution No. 25-1063 of the City of Olathe, Kansas regarding the Governing Body’s intent to levy a property tax exceeding the revenue neutral rate.
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TITLE:
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Consideration of Resolution No. 25-1063 of the City of Olathe, Kansas regarding the Governing Body’s intent to levy a property tax exceeding the revenue neutral rate.
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Summary:
The 2021 Kansas Legislature passed and Governor Kelly signed Senate Bill 13, and Senate Subcommittee for HB 2104. This legislation ended the property tax lid, established the presumptive maximum property tax rate as revenue-neutral, established processes to exceed the revenue-neutral property tax rate, and created a new public notice and public hearing requirements.
Under this law, the County Clerk must calculate the revenue-neutral mill rate and provide the information to taxing jurisdictions by June 15th. Entities that anticipate exceeding the revenue-neutral rate for the upcoming budget cycle must notify the County Clerk of such intent by July 20th.
On June 15th the City received notification from the Johnson County Clerk that Olathe’s revenue neutral rate was calculated at 21.892 mills. Resolution No. 25-1063 expresses the City’s intent to exceed the revenue neutral rate and to levy a property tax mill rate in an amount not to exceed 23.317 mills. This resolution does not establish the mill rate for the 2026 budget, it sets the maximum amount that could be levied. Pursuant to state law, the City will publish notice in the newspaper and the City’s website regarding the public hearing, which will be held on Tuesday, September 2, 2025.
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Financial Impact:
Property tax revenues make up 13% of the City’s total 2026 proposed budget across all funds and is collected in 3 tax-supported funds: General Fund, Library Fund, and the Fire Levy Fund. The Debt Service fund no longer has a dedicated mill levy in the 2026 proposed budget but will receive a pass through of property tax revenue from the General Fund in the amount of $27,712,974.
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Action Needed:
Approve Resolution No. 25-1063 expressing the City’s intent to exceed the revenue neutral rate calculated by the Johnson County Clerk and establish the date of the public hearing as Tuesday, September 2, 2025.
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Attachment(s):
A: Resolution No. 25-1063