It’s budget season for all tax jurisdictions (i.e. the city, county, school district, fire district), and that means it’s public hearing time. In addition to our annual budget hearing, we will have a Revenue Neutral Rate (RNR) public hearing on September 6 during the regularly scheduled City Council meeting. This hearing is called when a jurisdiction expresses intent to exceed the revenue neutral rate.
Being revenue neutral would require the City to provide next year’s services with this year’s budget, regardless of increased costs. For the City of Prairie Village, the revenue neutral rate would be 17.247 mills. The City Council has expressed intent to lower the mill levy rate from 19.322 mills to 18.322 mills. However, that mill rate still exceeds the revenue neutral rate, which is a concept that was established by the Kansas Legislature in 2021.
Another way of explaining the revenue neutral rate is that it’s the property tax rate that would generate the same total property tax in dollars for the City as the previous tax year using the current tax year’s total assessed valuation.
For the first time, in early August taxpayers will receive a mailed estimated tax notice from Johnson County listing all tax jurisdictions’ proposed, but not final, mill levy rates as well as their revenue neutral rates. The Prairie Village City Council will meet at 6 p.m. September 6 to hear public input relating to the proposed 2023 budget and the Revenue Neutral Rate.
The rate of 18.322 is a one-mill reduction from the 2022 budget. The 2023 budget continues to focus on community priorities: Maintaining a high quality of life; providing superior services; focusing on community safety; remaining mindful of the tax burden; investing in the public realm; and focusing on environmental sustainability. The proposed budget can be found in its entirety on the City’s website.
Based on the proposed property tax rate, the average Prairie Village homeowner will pay $75/month for City services. (This number is based on the average Prairie Village home value of $426,865.) Although the City’s property tax rate is decreasing, property taxes will fluctuate with the value of your home. The difference between the proposed property tax rate and the revenue neutral rate is approximately $4 per month for the average homeowner. The difference to the City budget is $590,000.
Contact the Finance Department if you have questions or comments about the 2023 budget. The public hearings will be held as part of the September 6 regular City Council Meeting. To participate in the public hearing, residents can attend the meeting or email their comments to City Clerk Adam Geffert at cityclerk@pvkansas.com. All written comments must be received by 3 p.m. Tuesday, September 6.
