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Olathe budget presentation; council votes to allow levy exceeding revenue‑neutral rate after heated public comment
Summary
City staff presented the proposed 2026 budget and intent to exceed the revenue neutral rate; council approved a resolution to set the maximum levy above the revenue neutral rate and scheduled final adoption for Sept. 16 after residents urged smaller tax increases—especially for seniors.
City budget staff presented the proposed City of Olathe 2026 budget at the Sept. 2 council meeting and the City Council voted to approve a resolution authorizing a levy that would exceed the statutory revenue neutral rate, a step required by Kansas law before final budget adoption.
Budget overview presented
Ashley Wooten, the city's budget analyst, summarized the proposed 2026 budget and the revenue neutral rate requirement established under recent Kansas truth‑in‑taxation law. Highlights provided in the presentation included:
- Total proposed 2026 budget (operating plus reserves): roughly $626,000,000 (a 2.6% increase over 2025). - Proposed general fund: approximately $227,000,000 (about $147,000,000 in operating, $31,000,000 in transfers and $49,000,000 in reserves); operating increases about 5.6%. - Capital Improvement Plan (2026–2030): roughly $741,000,000; examples included $11,000,000 for 119th Street Woodland improvements, a $40,000,000 city contribution toward a $114,000,000 Santa Fe/I‑35 interchange project, and $244,000,000 for water and sewer work. - Utility funds make up about 19% of the total; the average residential utility bill is expected to rise by $7.36 in 2026. - The debt service fund mill levy was shifted into the general fund with a transfer of about $27,000,000 (staff said the shift increases flexibility and helps reserve policy goals). - No new general fund additions proposed for 2026; nine full‑time positions proposed across solid waste, stormwater, water and sewer and library funds.
Public comment: affordability and senior relief
The hearing drew multiple residents urging the council to limit tax increases or provide targeted relief for seniors on fixed incomes. Speakers asked that the council limit property tax increases charged to seniors to approximately the Social Security cost‑of‑living increase (a figure residents gave as about 2.5%) and suggested working‑age wage increases (cited by a speaker as about 3.9%) as another benchmark for affordability.
Several speakers requested greater transparency and more detailed budget materials online; others asked whether shifting debt mills into the general fund could be revisited to reduce pressure on taxpayers. The city noted public budget workshops were held during the summer and staff said the full budget book will be posted to the city website after adoption.
Council action
After public comment the council moved to approve resolution number 25‑10‑75, authorizing a property tax levy that could exceed the revenue neutral rate for the 2026 budget. The city clerk recorded a 7‑0 roll call in favor. The resolution sets the maximum amount the city could levy and does not set the mill rate; the council will consider final budget adoption and mill rates at its Sept. 16 meeting and the county will then set the final mill rate.
What was not decided
The resolution does not finalize the 2026 mill levy or the adopted budget. Final adoption of the full 2026 budget, the 2026–2030 CIP and revised fee schedules remains scheduled for Sept. 16.
