Focus Area: Economy
Staff Contact: Jamie Robichaud, Clara Bernauer
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title:
title
Consideration of Resolution No. 26-1077 authorizing a levy of property taxes for the 2027 budget that requires a property tax rate exceeding the revenue neutral rate.
Body
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recommended motion:
A motion to approve Resolution No. 26-1077 to levy a property tax rate exceeding the revenue neutral rate.
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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.
On June 15th, the City received notification from the Johnson County Clerk that the City of Olathe’s revenue neutral rate for FY 2027 was calculated at 22.496 mills. Resolution No. 26-1057 approved by the City Council on July 14, 2026, 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 2026 mill rate of 23.334 mills.
Pursuant to state statute, the City published notice in The Legal Record on August 25, 2026, and the City’s website regarding the governing body authorizing a levy of property taxes in support of the FY 2027 budget that requires a property tax rate exceeding the revenue neutral rate. The public hearing was conducted on September 8, 2026 at 5:30 pm at Olathe City Hall.
This resolution does not establish the mill rate for the FY 2027 budget; it authorizes a levy exceeding the revenue neutral rate of 22.496. The FY 2027 budget’s proposed estimated tax rate is 23.334 mills, but the final mill levy may fluctuate depending on final assessed valuation by the County.
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Financial Information:
Property tax is projected to generate approximately $64.4M for the General Fund, $10.7M for the Library Fund, and $6.1M for the Fire Levy Fund.
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Attachment(s):
A. Notice of Hearing to Exceed Revenue Neutral Rate and Budget Hearing
B. Resolution No. 26-1077