Olathe has adopted a slightly larger budget for next year and agreed to hold the property tax rate flat. Nearly three-quarters of the city’s budget for 2026 will go toward public safety and infrastructure.
The Olathe City Council last Tuesday voted 5-2 to approve the total 2026 budget, which will be about $627 million — a 2.6% increase over 2025’s budget. Councilmembers Kevin Gilmore and Robyn Essex cast the dissenting votes.
Because Olathe plans to exceed the revenue-neutral rate, the city was required to hold a public hearing, which took place on Aug. 27.
No increase in property tax rate
Olathe’s mill levy — or property tax rate — will stay the same at 23.17 mills. Even so, most homeowners will likely see higher property tax bills due to rising property values. On average, households will pay about $7.42 more per month.
The city will collect $61.9 million from property taxes and $72 million from sales taxes.
According to the Johnson County Appraiser’s Office, the average home value in Olathe is $437,657, up about 7.4% from last year.
You can calculate what you will owe in property taxes by multiplying the value of your home by .115 (the residential assessment rate in Kansas). Divide that number by 1,000 and multiply it by the mill levy rate of 23.17 mills. Olathe has the second-lowest property tax rate in Johnson County.
Gilmore, who has voted no on every budget since joining the city council in 2021, said the city council hasn’t been putting taxpayers first.
“We as a council have failed,” he said. “Rather than setting responsible limits on taxation and spending, we’ve allowed a budget to be built using every available tax dollar at the current rate.”
Councilmember Dean Vakas, who supported the budget, said he’s heard from older constituents who don’t want to see their taxes increase. He suggested capping the property tax rate for Olathe homeowners over the age of 66.
“Maybe we could set a standard for other municipalities. That would be great,” he said. “In my heart of hearts, I think that it’s a solution that has to be provided by the state, but I’d like to look at it at the city level.”
Olathe does have a rebate program in place to help lessen the burden of property taxes on veterans and low-income residents.
Nearly 3/4 of budget is for public safety and infrastructure
Of the total budget, 71% will go to public safety and infrastructure. The bulk of what remains will go toward parks and recreation, library services and city services like human resources, communications, and customer experience for the city.
The city’s five-year capital improvement plan was passed unanimously. The plan, which forecasts long-range projects through 2030, is valued at about $741 million. According to a news release, the CIP’s 2026-30 goals focus on improved traffic flow and congestion mitigation. The city’s capital improvement project list includes:
- The 119th Street “missing link” project
- Improvements to Santa Fe Street from Ridgeview to Mur-Len
- A replacement of Fire Station #4
- Renovations to parks and pools
- A new animal shelter
“It takes a lot of money to run a city,” Mayor John Bacon said at the meeting. “And I think overall, our staff and this council does a great job of being good stewards of the tax payer money that we get.”
Go deeper: Learn more about the new budget here.
