Explainer: What a revenue neutral rate resolution means for McPherson taxpayers
Understanding the state law behind the City Commission's upcoming budget discussion
McPherson — When the McPherson City Commission meets July 14, 2026, the central topic will be the city's "revenue neutral rate" — a benchmark established by the Kansas Legislature that directly affects how local property taxes are calculated and collected.
The revenue neutral rate is the mill levy that would generate the same amount of property tax revenue as the prior year, accounting for new property valuation totals. Because real estate values typically rise, a local government must lower its mill levy to remain revenue neutral.
By considering a resolution to exceed that rate for the 2027 budget, McPherson commissioners are signaling an intent to keep the mill levy above the neutral baseline. For residents, this procedural step is the first indicator that city property tax bills are likely to increase to fund the upcoming year's municipal services.
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