Focus Area: Economy
Staff Contact: Jamie Robichaud, Clara Bernauer
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title:
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Consideration of Resolution No. 26-1057 of the City of Olathe, Kansas regarding the Governing Body’s intent to levy a property tax exceeding the revenue neutral rate.
Body
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recommended motion:
A motion to approve Resolution No. 26-1057.
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Summary:
In 2021, Kansas state 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 public notice and public hearing requirements.
Under K.S.A. 79-2988, 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 22.496 mills. Levying a revenue neutral rate would mean the Council would need to reduce the current tax levy rate. Resolution No. 26-1057 expresses the City’s intent to exceed that revenue neutral rate and to levy a property tax mill rate in an amount not to exceed 23.334 mills, which is a flat property tax rate year over year. This resolution does not establish the mill rate for the 2027 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 at 5:30pm on Tuesday, September 8, 2026.
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Financial Information:
Property tax is 17% of the City’s 2027 budgeted revenue across all funds and is collected in 3 tax-supported funds: General Fund, Library Fund, and Fire Levy Fund. The Fire Levy fund transfers its full authority to the General Fund. The Debt Service Fund no longer has a dedicated mill levy and instead receives a passthrough transfer from the General Fund.
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Attachment(s):
A: Resolution No. 26-1057