An Olathe home appraised at $457,425 would incur approximately $1,226 in annual city property taxes at 23.3 mills. The City Council voted 5-1 on Tuesday, Sept. 15, to approve a $657.6 million budget that freezes 22 positions and scales back capital projects.

The mill levy will hold flat at 23.3 mills, but rising home values mean the city will still collect more in property taxes than it did in 2026. The average Olathe home is appraised at $457,425, up nearly $20,000 from 2025, according to the Johnson County Appraiser's Office.

Councilmember Robyn Essex cast the lone "no" vote. Essex said some residents are questioning whether they can afford to stay in Olathe as property taxes rise.

"I just want us to work towards making Olathe a place where the people who built their lives here can afford to stay here," Essex said at the Sept. 15 meeting, as reported by the Johnson County Post.

City Manager Susan Sherman framed the budget as a response to what she called a "structural imbalance." General Fund spending is growing by about $14 million a year, while revenue grows by roughly $3 million. Without changes, Sherman said, the city's General Fund reserves would fall below target by 2029.

The city attributed the gap to rising personnel, healthcare and construction costs, slower property tax growth and the expected expiration of a county courthouse sales tax that brings in about $4 million annually.

What got cut

The 2027 budget freezes 22 General Fund positions, about 3% of General Fund jobs. Positions frozen in the 2026 budget will stay frozen.

Councilmember Jeff Creighton said the freeze is a short-term measure. "We've made the tough decision through this budget to do a hiring freeze, which that's not going to be long-term, that's not gonna be sustainable, but right now it offers some help," he said.

The five-year Capital Improvement Plan (CIP), approved separately in a 6-0 vote, totals $757.4 million. But the city's 2027 capital spending of $115.75 million is its lowest since 2021, according to the Olathe Reporter. 133rd Street from Black Bob to Greenwood Road and Lone Elm Road from 159th to 167th streets were eliminated. The animal shelter budget was cut $6 million, to $19 million.

Projects that survived include the Santa Fe corridor improvements, Fire Station 4 and 119th Street improvements.

What's next

Councilmember Matthew Schoonover said he wants the council to set spending limits earlier in the next budget cycle and asked staff to model what a revenue-neutral budget would look like.

The city also plans to expand its property tax rebate program for income-qualified residents and veterans. Olathe rebated about $301,000 in property taxes in 2026, according to city officials.

The 2027 budget takes effect Jan. 1, 2027. The city's budget page has the full spending plan.