Recommended 2023 budget ready for review

Recommended 2023 budget ready for review
Posted on 06/24/2022

The Lenexa City Council has set public hearings for the 2023 Recommended Budget, which balances a property tax rate reduction with continued exceptional services. 

The City Council will hold a special call meeting at 7 p.m. on Tuesday, Aug. 23, that includes two public hearings: one for the intent to exceed the revenue neutral rate, and one for the recommended budget. After the public hearings, the Council will consider adopting resolutions to exceed the revenue neutral property tax rate and to approve the 2023 budget.

Notice of revenue neutral rate hearing

Notice of budget hearing

The proposed $204.7 million budget:

  • Implements a one-mill reduction in the property tax rate. The new mill levy would be set at 28.102 mills, and user fee rates (like the stormwater service charge, memberships and permits) would stay the same. If approved, this will be the City’s fifth mill levy reduction in a row.
  • Maintains existing service levels while allocating additional funds for employee compensation. The proposed increase would help retain current employees and fill vacant positions in a competitive job market.
  • Uses general funds accumulated in fiscal years 2020-2022 to finance new projects in the Capital Improvement Program (CIP). While Lenexa budgeted conservatively over the last several years due to the financial disruptions of the COVID-19 pandemic, the City’s actual revenue collections were better than anticipated.
  • Maintains structural balance in the General Fund in all five years of the multi-year financial model.

Due to a 2021 Kansas law, there are two new requirements for the budget approval process. With each annual budget cycle, taxing jurisdictions like cities must calculate their revenue neutral property tax rate. This rate is the mill levy needed to generate the same amount of property tax revenue as the prior year, using the current year’s assessed valuations.

If a jurisdiction exceeds this rate – which is very common – they must hold a separate public hearing and send out notices to property owners.

In early August, Johnson County will mail out estimated tax notices to all property owners for the first time. The notices include information on specific property values and taxes, as well as upcoming public hearings for taxing jurisdictions. Learn more

Residents had the opportunity to  learn more about the City’s financial plans and ask questions one-on-one at a budget open house on Aug. 11 at Lenexa City Hall.

The City Council plans to consider the 2023-2027 CIP in fall 2022. The CIP outlines capital projects planned over the next five fiscal years with a cost of at least $300,000 and a useful life of at least five years. The approved CIP will be included in the final budget document when it is published later this year.

If you have questions, contact [email protected]

2023 recommended budget

 


Updated Aug. 12, 2022