Blue Valley board files notice to exceed revenue‑neutral rate; sets budget hearing for Sept. 8

The Blue Valley Board of Education on Aug. 11 voted unanimously to publish notices required by Kansas law indicating the district’s intent to exceed the revenue‑neutral rate for the 2025–26 budget and to set public hearings on the budget and revenue‑neutral rate.

District finance staff told the board the proposed 2025–26 tax levy is essentially flat as a rate, but a higher assessed valuation from Johnson County (and a small portion of Miami County) means the district is projecting roughly $6 million in additional local tax revenue compared with the prior year. The board approved publication of the revenue‑neutral notice and later approved the notice of hearing that establishes the legal maximum expenditures by fund for the 2025–26 budget. Both items will be republished in local newspapers at least 10 days before the Sept. 8 hearings.

Why it matters: Kansas law requires school districts to publish a revenue‑neutral notice when a district’s proposed taxes would exceed the revenue the district collected in the prior year. The procedure preserves a public hearing process; the board may revise mill levies at the Sept. 8 hearings before finalizing the budget in September.

Key points from the meeting

- Publication and hearing dates: Staff projected a Sept. 8, 5:30 p.m. revenue‑neutral hearing (district office) followed immediately by the budget hearing; both dates were placed on the published notices.

- Proposed levy and valuation: Staff reported an estimated assessed valuation increase of about 3.8% districtwide from Johnson County, producing a proposed tax levy that is “essentially flat” in rate but yields approximately $6 million more in local collections compared with the prior year because of higher valuations.

- Use of reserves: Finance staff said remaining revenue‑neutral (i.e., reducing local collections to equal last year’s collected revenue) would require a deeper draw on operating reserves to maintain the same expense levels, and that the district is already projecting some reserve use under the proposed budget. Staff cautioned that a significant one‑time drawdown could attract rating‑agency attention and possibly affect future borrowing costs. Moody’s currently rates the district ‘Aaa’ and S&P at ‘AA’, staff said.

- Bond & interest and capital funds: Staff explained the bond and interest fund is for debt service only and that the district’s outstanding debt was roughly $415 million (June 30), with a planned bond sale in the fall that could add close to $100 million. Staff said the district is using reserves in the bond and interest fund to moderate the bond mill levy and keep the overall rate flat.

- Tax notice mechanics: Staff displayed the taxpayer‑mailing form used to notify property owners. Johnson County’s automated figures for the mailer initially showed a higher bond mill rate in the notice than the district intends to propose; staff said the county’s mailing form follows statute and includes certain rates and that the district is working to ensure taxpayers see the net decrease the board proposes for the bond levy.

Board action and votes

The board voted to approve publication of the revenue‑neutral notice and to approve publication of the notice of hearing for the 2025–26 budget. Both motions passed by unanimous voice/hand vote.

What comes next

The board will hold the revenue‑neutral hearing and budget hearing on Sept. 8. Staff said actual assessed valuation will be finalized by county officials on Nov. 1 and that budget documents will be updated if necessary. The district also said it may republish the general fund budget later in the year if state aid or other estimates change.

Ending

Board members asked staff to provide additional detail on capital‑maintenance baseline needs and the district’s minimum reserve target ahead of the September hearings. The board’s publication approvals set the procedural steps required by Kansas law and schedule public opportunity for comment before final budget adoption.