2024 Budget process underway

2024 Budget process underway
Posted on 06/28/2023

The Lenexa City Council has started review of the 2024 Recommended Budget, which includes a property tax rate decrease, steady user fees and strategic funding for high-quality City services.

Budget Timeline

The Lenexa City Council plans to consider approving the 2024 Recommended Budget in late August, with opportunities for review and public engagement along the way. If you can’t make it to one of these events, email questions or comments to [email protected].

  • June 27 and July 11: Committee of the Whole review meetings. The City Council and Mayor will review the overall budget with staff. These meetings are for discussion purposes only.
  • Early August: Estimated Tax Notices mailed. Property owners will receive an estimated tax notice from Johnson County that outlines public hearing dates and proposed property tax rate changes. A 2021 state law requires that all taxing jurisdictions – like cities, counties and school districts – send out a mailed notice and hold a public hearing if they intend to exceed the revenue neutral rate. This is the mill levy needed to generate the same amount of property tax revenue as the prior year, using the current year’s assessed valuation amounts. It’s very common for taxing jurisdictions to exceed this rate so they can maintain and expand services.
  • Aug. 17: Budget Open House. This a great opportunity for Lenexa residents to ask questions and talk with the staff who prepare the annual budget. Stop by Lenexa City Hall any time between 5 and 7 p.m. to explore a series of stations about budget highlights and get expert answers to your more in-depth questions. Staff will give an overview presentation a couple of times in the Community Forum.
  • Aug. 22: Special City Council Meeting for public hearings and votes. The City Council will hold two public hearings at 7 p.m. in the Community Forum at City Hall: One for the City’s intent to exceed the revenue neutral rate, and one for the 2024 Recommended Budget. The Council plans to consider adopting resolutions to exceed the revenue neutral rate and approve the 2024 Budget after these hearings.

Budget Highlights

  • The Recommended Budget sets the mill levy at 27.372 mills – a 0.75 reduction in the City’s property tax rate. This is sixth year in a row the City has lowered the mill levy. The budget also recommends no changes to user fees.
  • Providing high-quality City services is always top-of-mind when preparing Lenexa’s operating budget. The proposed budget funds strategic projects and includes measures to retain good employees. It adds 6.5 full-time-equivalent employees, including new firefighters and additional lifeguards for an expanded Indian Trails Aquatic Center.
  • The 2024 Recommended Budget conservatively estimates $154.3 million in expenses and $154.3 million in revenue. Lenexa’s revenue benefits from housing valuation increases, sales and use tax growth, strong consumer demands for products and services for a hot labor market. The budget balance those assets with concerns like ongoing inflation, interest rate hikes, supply chain disruptions and a potential housing market contraction. It takes into account economic pressures like inflation, workforce changes and a potential recession or economic downturn.
  • Given the uncertain economy, the budget maintains sufficient General Fund reserves to help the City maintain its excellent bond ratings. These high ratings allow Lenexa to fund projects with lower interest rates, saving taxpayer dollars. Solid reserve balances also prepare the City events like a pandemic or recession.

The full Recommended Budget document includes a financial overview, department and fund budgets and more helpful information. Below, you can watch a presentation from City Manager Beccy Yocham and Chief Financial Officer Nate Blum on more detailed highlights from the proposed budget.

Published June 28, 2023