Dear Residents of Spring Hill,
In 2020, Spring Hill adopted a biannual budget process. Through this process, the City adopted a budget for 2021 and, at the same time, conditionally approved a budget for 2022. Then, earlier this year, the Kansas State Legislature adopted legislation for a revenue neutral budget process. Briefly, a revenue neutral budget is designed to levy the same dollar amount of taxes for 2022 as was levied in 2021. Essentially, the RNR budget “freezes” the tax revenues and prohibits municipalities from receiving additional tax dollars resulting from increased assessed valuation. Cities may levy a tax above the “RNR” by going through a revenue neutral rate hearing process. All cities were recommended to go through the RNR hearing process because, the actual rate levied and the dollar amount received is not determined until after the budget process has concluded.
Over the past few months, City staff has been working with Mayor Ellis to propose a “revenue neutral” budget to the City council. The revenue neutral budget option reduces spending and reduces mill levy. For residents, a revenue neutral budget means the amount you pay to the city for taxes should not increase. And, with growth, the amount you pay may actually decrease.
Both the revenue neutral budget and the conditionally approved budget will be posted on the City’s website. A budget hearing is scheduled to take place at the September 23 regularly scheduled City Council meeting. A 2022 budget will be adopted after the budget hearing takes place.
Although a Revenue Neutral budget option will be presented, the City is following the procedural requirements of Revenue Neutral Rate (RNR) process.
This process requires that a revenue neutral rate hearing be held and a revenue neutral rate resolution be adopted. The publication notices for both the revenue neutral rate hearing and the budget hearing contained the levy rates associated with the original conditionally approved budget. These notifications are the maximum level that can be adopted. Council may adopt a budget with an expense amount or mill levy less than the published rate.
Residents with questions may contact Interim City Administrator Pat Burton at (913) 333-1305 via call or text.