Olathe homeowners prepare for bigger spike in property taxes after revenue neutral rate vote

OLATHE, Kan. — KSHB 41 reporter Isabella Ledonne reports on stories in Overland Park, Johnson County and topics about government accountability. Share your story idea with Isabella.

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Just two weeks after the Johnson County Board of Commissioners voted to exceed its revenue neutral rate, the City of Olathe voted on Tuesday night to do the same.

The votes raise the amount of property taxes both the county and the city are allowed to collect.

That means neighbors in Olathe city limits could see a bigger spike in their property bills if their home value goes up next year.

"The double whammy sucks," Olathe homeowner Aaron Haffey said. "I can cut back spending a lot, but what I can’t do is eliminate the tax burden on my home."

Tuesday's decision also comes as the Olathe Public Schools District announced last week it would be closing at least six schools next year due to declining enrollment and high operating costs.

Both Olathe and Johnson County leaders have cited rising inflationary costs as the main factor behind deciding to collect more in property taxes next year.

But as home values in Johnson County continue to rise, many neighbors feel they're being priced out of their homes, as evidenced by the significant decline in enrollment across Johnson County schools.

Haffey's two young daughters would have started classes soon at Scarborough Elementary, or they would've, if it wasn't one of the schools closing at the end of this school year.

Fabian Rosales

"If our biggest expenditure is education, why do you need more money if we know that all these schools are going to be closing over the next five years?" Haffey said.

The Olathe homeowner and father previously spoke out against Johnson County exceeding its revenue neutral rate to make up a nearly $20 million deficit in property tax collections next year.

Olathe is looking to do the same to make up an estimated loss of $3 million next year.

Haffey explained his property taxes have gone up dramatically since he first purchased his home in 2012.

"They all like to play this game of we only take this much, the city takes this much," Haffey said. "I don't really care who takes it. At the end of the day, all of those additions and increases add up to a lot for the average homeowner."

KSHB 41 News found out through a Kansas Open Records request that the average Johnson County home has increased in value by 6.38% since last year.

Haffey explained the rising home values brings a level of uncertainty and a potential pricey decision of moving out.

"I don't want to leave here," Haffey said. "This is my home, but I'm constantly feeling like I'm being forced out and that I'm going to be priced out."

The Olathe City Council voted six to one to exceed the revenue neutral rate next year, but the actual mill levy tax rate won't be set until next week's budget hearing.

Councilmember Robyn Essex was the only council member who voted against exceeding the revenue neutral rate.

"You're trying to cost us out of our homes," a resident said at Tuesday's public hearing.

Olathe's mayor explained those additional dollars will help cover rising health insurance costs for city employees and construction costs on city developments, in addition to recouping lost revenue.

Fabian Rosales

"I would love to say that we don't need as much revenue as we did last year, but that's not the case here in Olathe," Mayor John Bacon said. "Part of it is to fill the hole on the sales tax that we're missing out on from the county. That's a $4 million hole."

51% of property taxes go toward the school districts. KSHB 41 Johnson County reporter Isabella Ledonne asked Mayor Bacon why more money is needed if at least six schools in Olathe won't open their doors next year.

"Any response you have to the schools closing, but property taxes increasing next year?" Ledonne asked.

"That's really up to the school district," Mayor Bacon said. "That doesn't have anything to do with Olathe."

Olathe is set to adopt its budget at next week's city council meeting on Tuesday, September 15.

Expenditures for next year's budget have increased nearly 5% from last year's budget, according to a city staff presentation.

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