Overland Park adopts $516 million 2027 budget and votes to exceed revenue-neutral rate

The Overland Park City Council voted unanimously on Sept. 14 to adopt the 2027 operating budget, strategic goals, the 2027–2031 capital improvements program and the maintenance program, and to authorize exceeding the revenue-neutral rate for 2027.

Gina McDonald, the city's director of budget and finance, presented the proposal and a five-year financial forecast. McDonald told the council the city’s total revenues and expenditures for 2027 are budgeted at $516,000,000 and said the proposed mill rate is 14.579 mills. "The total budget is $516,000,000," McDonald said during her presentation. She identified property tax and sales tax as the two largest revenue sources and said the proposed property tax rate would result in roughly $838 in city property tax on a $500,000 house under the city's proposal.

McDonald described program allocations across the operating and capital budgets: roughly $215 million in operating funds (a 6.5% increase driven largely by personnel costs), a 5-year CIP of about $361,000,000 with roughly $75,000,000 in 2027, and a maintenance program that supports street and traffic infrastructure. She said the city budgets to a zero fund balance as required by state law while preserving strong fiscal policies and triple-A bond ratings that lower borrowing costs.

During the required public hearing on the revenue-neutral (R&R) process a resident urged the council to use reserves rather than exceed the R&R; McDonald had previously noted the city’s general reserves and the multi-year plan for spending on capital and maintenance.

After the public comment period, a motion to adopt Resolution 51-58 to exceed the revenue-neutral rate passed on a recorded roll call vote of 13-0. The council then voted 13-0 to adopt the full 2027 budget package and to certify the proposed ad valorem tax to the county clerk.

Why it matters: City officials said the adopted budget preserves core services and funds continued investments in streets, public safety and housing-related goals while maintaining reserve and bond-rating practices that affect long-term borrowing costs. The council’s decision to exceed the R&R means the city will collect more property-tax revenue in 2027 than a strictly revenue-neutral approach would allow; staff said the budget will be certified to the county before the end of the month.

What’s next: Staff will finalize budget documentation for county certification and implement the programs and capital projects included in the adopted plan.