FOCUS AREA: Economy
Staff Contact: Jamie Robichaud / Jarrod Stewart
Subject: A resolution of the City of Olathe regarding the governing body authorizing a levy of property taxes for the 2025 budget that requires a property tax rate exceeding the revenue neutral rate.
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Item Description:
title
Consideration of Resolution No. 24-1043 authorizing a levy of property taxes for the 2025 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 2025 was calculated at 21.610 mills. Resolution No. 24-1032 approved by the City Council on July 16, 2024, 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 2024 mill rate of 24.356 mills.
This resolution does not establish the mill rate for the FY 2025 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 13, 2024, and the City’s website regarding the governing body authorizing a levy of property taxes in support of the FY 2025 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 $25.8M for the General Fund, $9M for the Library Fund, $5.1M for the Fire Levy Fund, and $28.9M for the Debt Service Fund.
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Action Needed:
Approve Resolution No. 24-1043
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Attachment(s):
Attachment A: Notice of FY 2025 Budget Hearing
Attachment B: Resolution No. 24-1043