Johnson County proposes $1.9 billion 2027 budget, keeps mill levy flat

Johnson County's Board of County Commissioners received a presentation May 21 on the county manager's proposed 2027 budget, which totals about $1.9 billion and holds the county's mill levy flat at 24.130 mills.

"I am pleased to present the proposed 2027 budget to you this morning," said Miss Posto Ferguson, introduced in the transcript as the county manager, as she opened the overview and highlighted accomplishments and the pressures that shaped the proposal.

Why it matters: staff said the proposal balances competing pressures ' slowing sales-tax growth, inflation and higher costs, and reductions in state-sourced revenue ' while maintaining service levels for a growing, aging population. The package includes a $1.377 billion operating budget, $530 million in total reserves (which include enterprise reserves such as wastewater), and no new county tax-funded full-time equivalents outside parks and library.

Staff and assumptions: budget presenters said the county retained a AAA bond rating and showed assumptions underlying the forecast: assessed valuation growth projected at about 5.1%, estimated appeals of roughly $145 million, and continuing inflationary pressures for commodities and vehicle replacement. Robin Signs (budget presenter) summarized revenue pressures and said staff estimated $41 million in lost revenue stemming from a set of state changes to earlier revenue streams.

Reserves and the gap: staff distinguished restricted from unrestricted reserves, reporting an unrestricted general fund balance of roughly $136 million (about 28.4% of the general fund) and a target of 28% on unrestricted resources. After department work and identified service modifications and new revenue, staff said the 2027 budget gap fell from an earlier $10.1 million to about $5 million and that the board would bridge that difference largely with one-time reserves while continuing work into the fall for 2028 planning.

What will change: staff identified $5.6 million in service modifications and $3.7 million in new ongoing revenue applied against ongoing needs, along with a vacancy pause expected to produce roughly $7 million in one-time savings by year end. Presenters emphasized those savings were intended as bridge funding and not a long-term structural solution.

Next steps: the commission will hear department presentations June 4 and June 18, hold two public open houses June 23-24, set maximum expenditure authority on July 16, and hold a public hearing on August 25 with budget adoption targeted for September 3. Chair Mike Kelly closed the session without a request for board direction at this meeting.