September 8, 2025 at 6:30 PM - Revenue Neutral Rate Hearing
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1. Opening Items
Agenda Item Type:
Procedural
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1.A. Call to Order
Agenda Item Type:
Procedural
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2. Revenue Neutral Rate Hearing
Agenda Item Type:
Action Item
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2.A. Revenue Neutral Rate Hearing
Agenda Item Type:
Action Item
Public Content:
"Revenue neutral rate" means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year’s total assessed valuation. To calculate the revenue neutral rate, the county clerk shall divide the property tax revenue for such taxing subdivision levied for the previous tax year by the total of all taxable assessed valuation in such taxing subdivision for the current tax year, and then multiply the quotient by 1,000 to express the rate in mills. The revenue neutral rate shall be expressed to the third decimal place.
In the past, the process of building and approving the budget was a challenge. The BOE would be presented with a budget document that they could approve as is, or make adjustments, and ultimately publish in the local newspaper. All budgets had to be approved by the BOE on or before August 25th, and publishing was required 10 days prior to the BOE’s budget hearing. With the passage of Senate Bill 13 this has changed. The goal of the bill was to replace the current tax lid for cities and counties, requiring local governments to provide more information to the community and giving patrons ample opportunity to protest any increases. In its inception, Senate Bill 13 was specific to counties, cities and other taxing entities and not school districts. School districts were not initially included because mill rates for schools have set caps based upon different policies and statutes. School districts are authorized to levy property taxes for selected funds. Property taxes for these funds are computed using a mill rate, which is a mathematical procedure to determine property taxes. One mill is one dollar of property tax levied against $1,000 of assessed valuation. The assessed valuation is computed by taking the market value of the property and multiplying it by the appropriate assessment factor for that class of property. With Senate Bill 13, each district in the State of Kansas will now need to look at its revenue neutral mill rate levy (RNR) in addition to the current annual process of reviewing the mill levy. Below is specific information about each rate: General Fund: The total dollar amount of the general fund is based on student headcount. Each student is counted once for the total headcount. Some students are then counted again based upon additional services that they receive (ESL and Vocational) while other students are counted as a funding mechanism to provide funds for programs (At-Risk). The Cap for General Fund is set by Kansas Statue at 20 Mills. Supplemental General Fund: The supplemental general fund mill levy is set by the USD 244 Board of Education. School districts within the state do not all have the same prosperity within their communities. The state acknowledges these differences and uses an equalization formula for districts who have a below average tax base. That is why the state equalizes every dollar ($1.00) that is raised locally through property tax. Capital Outlay: The capital outlay mill levy is a resolution that is approved by the board. Expenditures from this fund are used for capital improvement expenses. Mill levy information is listed below:
It is important to note that each school district sets a total dollar amount of taxes to be raised for each fund during the budget building process. Through the budget process, the dollar amount is then changed into mills for taxing purposes. When the BOE adopts its budget with a specific mill levy, it sometimes changes due to a fluctuation in property valuations. Instead of just reviewing the Mill Levy, each district in the State of Kansas will now need to look at its revenue neutral mill rate levy (RNR). The RNR is based on the total dollars raised through taxes last year. If the district decides to go over their RNR rate a separate publication and hearing will be required. It is virtually impossible to stay revenue neutral in all funds because by statute the district needs to raise 20 mills in the general fund. The mill levy will show an increase for the 2025-2026 school year. In order to adopt the RNR a roll-call vote must occur.
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3. Closing Item
Agenda Item Type:
Procedural
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3.A. Adjourn
Agenda Item Type:
Procedural
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