Focus Area: Economy
Staff Contact: Jamie Robichaud / Clara Bernauer
Subject: A resolution of the City of Olathe regarding the governing body authorizing a levy of property taxes for the 2026 budget that requires a property tax rate exceeding the revenue neutral rate.
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title:
title
Consideration of Resolution No. 25-1075 authorizing a levy of property taxes for the 2026 budget that requires a property tax rate exceeding the revenue neutral rate.
Body
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Summary:
During the 2021 Kansas Legislative session, Senate Bill 13, Truth in Taxation, Property Tax Transparency, was passed and signed by Governor Kelly. This legislation ends the property tax lid, establishes the property tax rate as revenue-neutral, establishes processes to exceed the revenue-neutral property tax rate, and creates a new public notice and public hearing requirements.
On June 15th, the City received notification from the Johnson County Clerk that the City of Olathe’s revenue neutral rate for FY 2026 was calculated at 21.892 mills. Resolution No. 25-1063 approved by the City Council on July 15, 2025, expressed the City’s intent to exceed the revenue neutral rate and set the maximum property tax rate in an amount not to exceed the City’s current 2025 mill rate of 23.317 mills.
This resolution does not establish the mill rate for the FY 2026 budget; it sets the maximum amount that could be levied.
Pursuant to the new legislation, the City published notice in The Legal Record on August 19, 2025, and the City’s website regarding the governing body authorizing a levy of property taxes in support of the FY 2026 budget that requires a property tax rate exceeding the revenue neutral rate.
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Financial Impact:
Property tax is projected to generate approximately $62M for the General Fund, $10.3M for the Library Fund, and $5.9M for the Fire Levy Fund.
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Action Needed:
Approve Resolution No. 25-1075
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Attachment(s):
A: Notice of FY 2026 Budget Hearing
B: Resolution No. 25-1075