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Blue Valley Board approves publication to exceed revenue-neutral tax rate, schedules Sept. 8 hearings
Summary
The board voted to publish its intent to exceed the revenue‑neutral rate and set a Sept. 8 hearing; finance staff said keeping the mill rate flat with rising assessed valuation would yield roughly $6 million in additional local revenue and an estimated $97 annual increase for an average $650,000 home.
The Blue Valley Board of Education on Aug. 11 approved publication of the district’s notice of intent to exceed the revenue‑neutral tax rate and separately approved the publication of the 2025–26 budget hearing notice. The board set the revenue‑neutral hearing for Sept. 8 and the budget hearing to follow at the same meeting.
CFO Jeremy McFadden explained the statutorily required revenue‑neutral notice, the Johnson County assessed‑valuation estimate used in the computation (approximately a 3.8% district‑wide increase), and the district’s proposed mill rates. McFadden said the district is proposing total taxes levied of roughly $159.7 million with a proposed mill rate essentially flat from the prior year (about 33.594). Using the county estimate, McFadden said that keeping the district mill rate flat would increase locally controlled revenue by roughly $6 million.
McFadden walked board members through the tax statement taxpayers will receive and highlighted a difference in how Johnson County presented bond mill figures: the county’s notice showed a bond mill rate of about 9.337 while the district’s proposal included a bond mill rate of about 9.016. McFadden said Johnson County clarified the discrepancy as a function of statutory reporting rules and the timing of when a jurisdiction files an intent to exceed revenue neutral.
Board members asked how the change in assessed valuation translates to homeowner bills. McFadden estimated that for an average $650,000 home in Overton Park the district‑controlled portion of the tax bill would increase by about $97 annually under the proposed notices. He also explained the district’s debt service profile (roughly $415 million outstanding at June 30, with a planned bond sale this fall of about $100 million) and that the district is using reserves in the bond and interest fund to smooth mill impacts this year.
Several board members pressed staff on reserves and risk to credit ratings if reserves are materially drawn down; McFadden said the district has informed rating agencies of a planned modest spend‑down and that, if controlled, it should not trigger immediate alarm, though a significant draw could lead to a negative outlook or downgrade. Board members also asked for further detail on the district’s capital needs and the portion of capital outlay that covers salaries vs. capitalized assets.
The board approved both publications unanimously and instructed staff to publish required notices and return with more detailed budget and capital‑outlay analyses ahead of the Sept. 8 hearings.
Next step: the district will publish the notices in county and regional newspapers at least 10 days before the hearing and present finalized valuation figures after Johnson County’s Nov. 1 certification.
