2025 Budget approved

Published on September 04, 2024

The Lenexa City Council voted to approve the 2025 Recommended Budget(PDF, 9MB) at its meeting Sept. 3, 2024. The approved budget features the City’s seventh consecutive property tax rate and conservative funding for high-quality services and capital projects. 

Budget highlights

The total budget for 2025 is $246.8 million — $168.3 million in general operating expenses and $78.5 million for projected reserves. The property tax rate is estimated to be 26.970 mills, a decrease of 0.500 mill from the 2024 mill levy of 27.470 mills. Sales and use tax collections are estimated conservatively, and there are no proposed fee adjustments. 

Increased expenditures from the 2024 Budget include:

• Funding for employee compensation increases/adjustments to help retain and recruit staff in a competitive job market.
• Additional funding for contractional services, commodities and capital outlay due to inflation and increased operational costs associated with opening new facilities, like the Lenexa Justice Center and Sar-Ko-Par Aquatic Center. 
• Transfers to finance the approved Capital Improvement Program and equipment replacement. 
• Additional funding for new debt issued to finance capital projects.
• Increases in Tax Increment Financing and Community Improvement District funds. These expenditures are “pass-through” funds. They reimburse developers for eligible costs within certain development districts and are not for city operations. Record development increased the amount of revenue in these funds in 2024. 

Building the budget

Lenexa achieves positive financial results and top credit ratings by adhering to these longstanding budget principles: 

• Funding ongoing operating expenditures with ongoing revenue sources. 
• Using one-time revenues for one-time expenditures, like capital projects. 
• Maintaining sufficient reserve balances to address unforeseen events like economic recessions. 
• Using a conservative approach to revenue estimation. 
• Preparing and funding equipment replacement and building maintenance schedules.

Public input is a pivotal part of each year’s budget process. Residents were invited to share input on the 2025 Budget at an open house Aug. 15 and at public hearings Sept. 3. 

What’s next? 

The final version of the budget document will be posted at Lenexa.com/Budget after the Capital Improvement Program (CIP) process wraps up near the end of the year. The CIP allocates funding and sets a tentative schedule for community infrastructure projects over a five-year period.

The Lenexa City Council will begin study of the 2025–2029 CIP in November.