In September, the city of Mission approved its 2024 budget with a property tax rate increase.
The city faced a $900,000 budget deficit for 2024, and to help patch that hole, discussed increasing the mill levy rate from 16.374 to 18.500.
The city still remains in a budget deficit for 2024, and increasing the mill levy won’t actually close the gap, according to city documents.
On Sept. 6, the Mission City Council voted 7 to 1 to approve the 2024 budget with a mill levy rate of 18.500. Councilmember Kristin Inman cast the lone dissenting vote.
How this impacts your tax bill
For 2024, the city of Mission’s property tax rate is 18.500, a 2.126-mill increase from 2023.
The city’s property tax rate dictates how much homeowners pay in taxes based on their home’s assessed value.
The average home value in Mission in 2023 is $310,935, which is up by nearly 7% from the average value in 2022.
Here is how homeowners can calculate their actual tax bill based on the recently adopted budget:
- Multiply your home value by the resident assessment rate in Johnson County, which is .115.
- Take that number, divide it by 1,000 and multiply the outcome by the city’s 18.500 property tax rate.
- Using this formula, the average Mission homeowner will pay $661 in taxes to the city in 2024 compared to $548 in 2023.
Remember: Residents pay taxes to more than just the city with their annual tax bill. Like all Johnson Countians, Mission residents pay taxes to other jurisdictions including school districts and the county itself.
Raising the mill levy doesn’t fix the budget deficit
City documents say raising the mill levy doesn’t close the gap in the city’s budget, but it does help.
“Increasing the mill levy from 16.374 to 18.500 does not solve all the budget pressures and considerations for 2024, but it does help the City to position itself more appropriately for the future,” city staff wrote in an FAQ about the budget.
Additionally, Mission’s 2024 expenses still exceed revenues due to transfers out of the general fund to other funds, according to the Sept. 6 city council packet.
Meanwhile, other factors that have contributed to the city’s unbalanced budget include:
- A $150,000 return to Hy-Vee and Target (originally estimated for 2023 revenues) from “dark store theory” payouts
- The mill levy has steadily decreased from 2016 to 2023 by 1.645 mills
- Transferring of $1.4 million from the general fund to the capital improvement fund for street maintenance
- Ongoing COVID-19-related impacts, such as a shortfall in the Powell Community Center revenues
- Escalating costs of construction projects
- Maintaining a 25% reserve for the general fund
Read the Post’s coverage of the city working through the deficit over the summer here.
Total expenses are nearly $30 million
- City documents show total expenses for 2024 total $29.8 million, while revenues come in at $26 million.
- Expenses include nearly $9 million for personnel services, which is the largest expenditure in the general fund, according to city documents.
- Contractual services and commodities eat up about $4.3 million of the budget, and include legal and engineering services, utilities and consumable goods, according to city documents.
Go deeper: See the city of Mission’s frequently asked questions related to the budget here.
