Olathe City Council Approves 2026 Budget

At the Sept. 16 Olathe City Council meeting, the 2026 budget was approved with a 5-2 vote. The 2026-30 Capital Improvement Plan (CIP) was approved with a 7-0 vote, and the Fee Schedule was approved with a 7-0 vote from the Governing Body. The adopted budget exceeds revenue neutral because the City's assessed valuation increased with new commercial and residential construction and growth in individual property values.

The 2026 budget includes a 23.317 mill levy and a flat tax rate, unchanged from 2025. External pressures such as rising costs of commodities and inflation required a modest 2.6 percent expenditure increase in the 2026 budget. However, more than $4 million was cut from the 2026 budget to ensure a strong forecast in the coming years.

While the proposed tax rate remains flat, property tax bills may increase due to the increased valuation of resident properties. City of Olathe receives just 20 percent of a Johnson County resident's property tax bill. Based on the median home's valuation, Olathe residents may see an average monthly increase of $7.42 for the City's tax responsibility.

"The City of Olathe remains committed to serving our growing community with exceptional customer service and an unwavering focus on resident priorities," Olathe City Manager Michael Wilkes said. "The 2026 budget approval from the Olathe City Council provides clear direction to our staff, ensuring the continued delivery of extraordinary services that support public safety and first responders, enhance resident quality of life, support award-winning parks and trails, and improve mobility across the city. This budget reflects the values and expectations of our residents while preserving the second-lowest mill rate in the State of Kansas."

The 2026 budget focuses on resident priorities with 71% of the budget allocated to public safety and infrastructure while maintaining an AA+ bond rating allowing for financial flexibility.

The City of Olathe continues to promote a property tax rebate program for income-qualified residents and Veterans. Visit OlatheKS.gov/TaxRebate for more information on the property tax rebate program. In 2026, the City will expand an affordability program that provides relief to residents with City water and sewer costs.

The CIP includes a continued focus on the resident priority of improved traffic flow and congestion mitigation. CIP projects include the 119th Street Expansion project, improvements to Santa Fe Street, Ridgeview to Mur-Len; an attainable home pilot program, and Fire Station #4 replacement.

Olathe residents value recreational opportunities, and the CIP includes support of quality park and pool amenities, pedestrian connectivity, and a new animal shelter.

The total 2026 budget across all funds is $626,979,747. The 2026 General Fund Budget is $227,700,242. The 2026 CIP budget is $741,042,777.

Olathe is the only full-service city in Johnson County, KS and boasts the second-lowest mill levy in the State of Kansas. Annual assets maintained include 1,394 lane miles of streets, 2,011 acres of parks, 87 miles of trails, 13,133 streetlights, 43,671 homes serviced for solid waste collection, 641 miles of waterlines maintained, and 392 miles of storm pipe maintained. The 2026 budget ensures adequate funding to support City of Olathe infrastructure and assets.

Visit OlatheKS.gov/Budget for budget information, CIP and Fee Schedule information, documents, and timelines.