Olathe city council set to vote on 2027 budget that exceeds revenue neutral tax rate

OLATHE, Kan. — KSHB 41 reporter Olivia Acree covers portions of Johnson County, Kansas, including Olathe and Lenexa. Share your story idea with Olivia.

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The Olathe City Council is set to vote tonight on the 2027 city budget. It total more than $657,000,000 and includes exceeding the revenue neutral rate — meaning the city would collect more money from property taxes than the year before.

The city held a public hearing on the matter last Tuesday, where residents voiced concerns about rising costs.

"I'll never get my house paid off," one Olathe resident said at the September 8 public hearing.

Olathe is not the only jurisdiction in Johnson County to take this step. Johnson County approved its 2027 budget and exceeded its revenue neutral rate in August. This week, Overland Park and Olathe are doing the same.

A revenue neutral rate is a tax rate that brings in the exact same amount of money from property taxes as the year before. When a taxing jurisdiction exceeds the revenue neutral rate, it collects more property tax revenue than the previous year. Assessed property valuation is only part of the equation — the tax rate matters too.

Residents in these Johnson County cities say they are concerned about paying more year after year. Olathe homeowner Aaron Haffey said the ongoing increases leave his family uncertain about their future in their home.

"Every year we look at it and go if it keeps going up this much, in five more years we can't afford to be here anyway. It's that constant uncertainty," Haffey said.

Olathe is looking to make up an estimated loss of $3 million next year. Mayor John Bacon said inflation is the biggest factor driving the decision.

"I would love to say hey we don't need as much revenue as we did last year but that's not the case here in Olathe," Bacon said.

The Olathe City Council is expected to vote to officially approve the budget and property tax rate tonight.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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