The district has not approved a final tax increase, and its July board packet does not disclose how high the mill levy could go.

The Salina USD 305 Board of Education has preserved its ability to collect more property-tax revenue for the 2026-27 school year than it collected during the previous year.

The board included the revenue-neutral-rate authorization in its consent agenda during the July 14 meeting. The action allows district administrators to calculate the proposed property-tax rates and notify the Saline County clerk that USD 305 may exceed its revenue-neutral rate.

The decision does not establish the district’s final mill levy, approve the complete 2026-27 budget or determine how much any individual property owner will pay.

What the Board Approved

The district’s agenda described the item as “Approve Exceeding the Revenue Neutral Rate,” but the recommendation in the supporting material was more conditional.

The board authorized district administrators to prepare the revenue-neutral calculations and, “if applicable,” notify the county clerk by July 20 that USD 305 intended to exceed the rate for one or more property-tax funds.

That distinction matters.

The July action preserved the district’s legal ability to exceed revenue neutrality later. The board must still hold a public hearing and conduct a separate roll-call vote before adopting a budget that exceeds the revenue-neutral rate. Kansas law requires that hearing to take place between Aug. 20 and Sept. 20.

What Revenue Neutral Means

The revenue-neutral rate is the mill levy that would generate the same amount of property-tax revenue collected during the previous year, using the current year’s assessed valuation.

When assessed property values increase, a taxing entity generally must lower its mill levy to remain revenue neutral.

That means USD 305 could exceed revenue neutrality even if its overall mill levy remains unchanged or decreases slightly.

The calculation is based on total property-tax revenue, not simply whether the tax rate increased.

For example, if the district keeps approximately the same mill levy while the total assessed value of property inside the district rises, USD 305 would generally collect more money. Remaining revenue neutral would require the district to reduce its rate enough to offset that valuation growth.

How High Could the Mill Levy Go?

The exact maximum is not included in the July 14 board packet.

USD 305’s supporting material says the final rates will be shared during an Aug. 11 special meeting after the district closes its 2026 fiscal year. Revenue-neutral-rate and budget hearings are scheduled for Sept. 8.

Under Kansas law, a taxing entity notifying the county clerk of its intent to exceed revenue neutrality must provide its proposed tax rate. The board cannot later approve a budget producing a rate higher than the proposed rate included in that notice.

That means USD 305’s maximum legal ceiling should be contained in the proposed-rate notice submitted to the Saline County clerk.

However, that proposed rate was not disclosed in the district’s July board packet. The available district records therefore do not show whether USD 305 preserved the option to levy 55.5 mills, 56 mills, 57 mills or another amount.

Until the district or county releases that proposed-rate notice, the exact potential increase remains unknown.

USD 305’s Current Mill Levy

USD 305 budgeted a total levy of 55.129 mills for 2025-26, down slightly from the actual 55.300 mills levied during 2024-25.

The current budgeted levy consists of approximately:

General Fund: 20.000 mills

Local Option Budget: 16.115 mills

Capital Outlay: 8.000 mills

Salina Adult Education Center: 0.750 mills

Bond and Interest: 10.264 mills

The district reported total assessed valuation of approximately $580.4 million during 2024-25 and budgeted valuation of approximately $597.8 million for 2025-26.

Because valuation increased, the district could collect additional property-tax revenue even though its total budgeted mill levy declined by 0.171 mills.

Where an Increase Could Occur

The district told board members that it typically levies property taxes through five funds.

The General Fund is set at 20 mills under Kansas school-finance law. The district typically levies 8 mills for Capital Outlay and 0.75 mills for the Salina Adult Education Center.

USD 305 said its Local Option Budget and Bond and Interest levies fluctuate based on assessed valuation and state aid.

Any substantial change in the district’s overall levy would therefore most likely occur through:

Local Option Budget

The Local Option Budget, sometimes called the supplemental general fund, provides additional operating money beyond the district’s primary state-funded budget.

Its mill rate can change based on the amount of budget authority, assessed valuation and state equalization aid.

Bond and Interest

The Bond and Interest levy pays principal and interest on voter-approved school construction debt.

The rate can fluctuate depending on annual debt payments, available cash, state aid and the district’s assessed valuation.

Capital Outlay

USD 305 currently budgets the full 8 mills typically available for Capital Outlay. The fund pays for buildings, equipment, technology, vehicles and other capital expenses.

General Fund

The 20-mill General Fund levy is required under Kansas school-finance law.

Kansas law provides an exception when the mandatory 20-mill levy is the only reason a school district would collect more property-tax revenue than the previous year. In that circumstance, the district is not treated as exceeding the revenue-neutral rate.

What One Additional Mill Would Cost

Kansas property taxes are based on assessed value rather than the full appraised value of a property.

Residential property is assessed at 11.5% of its appraised value. One mill equals $1 in tax for every $1,000 of assessed valuation.

The approximate annual cost of each additional USD 305 mill would be:

$100,000 home: $11.50

$150,000 home: $17.25

$200,000 home: $23

$250,000 home: $28.75

$300,000 home: $34.50

$400,000 home: $46

For a home appraised at $250,000:

A one-mill increase would cost approximately $28.75 per year.

A two-mill increase would cost approximately $57.50 per year.

A three-mill increase would cost approximately $86.25 per year.

Those figures show only the effect of a change in USD 305’s mill levy. A homeowner’s final school-tax bill could also change because of an increase or decrease in the appraised value of the property.

Commercial and industrial property is assessed at a higher rate than residential property, so the cost of each additional mill would be greater for a business property with the same appraised value.

What the Action Does Not Mean

The July vote does not necessarily mean USD 305’s total mill levy will increase.

It also does not mean every property owner will automatically pay more.

Several outcomes remain possible:

The district could approve a mill levy higher than 55.129 mills.

It could keep the levy approximately level.

It could lower the levy but still collect more revenue because property values increased.

It could lower the levy enough to remain revenue neutral.

An individual tax bill could rise because the property’s valuation increased, even if the district lowers its mill rate.

The revenue-neutral process measures the district’s total property-tax collections. It does not guarantee that every property owner will experience the same percentage change.

Current Budget Context

USD 305 budgeted approximately $173.1 million in total expenditures across all funds for 2025-26, compared with approximately $157.4 million in actual expenditures during 2024-25.

Budgeted all-funds spending increased from $24,250 to $26,649 per pupil.

The total includes more than ordinary classroom operations. It includes special education, the Central Kansas Cooperative in Education, food service, capital improvements, transportation, debt payments and other district funds.

USD 305’s outstanding debt was budgeted to decline from approximately $83.5 million to $74.2 million during 2025-26.

The district has not yet released a complete final 2026-27 budget showing proposed spending, revenue, fund balances and property-tax collections.

What Taxpayers Still Do Not Know

The following figures were not provided in the July board packet:

USD 305’s official revenue-neutral rate

The proposed maximum mill levy submitted to the county clerk

The proposed total property-tax revenue

The dollar and percentage increase over the previous year

The proposed mill rate for each district fund

The effect on homes and businesses at different values

The complete 2026-27 expenditure budget

Whether the final overall levy is expected to rise or fall

Without those figures, it is not currently possible to state how many mills the district may add or how much additional revenue it may seek.

What Happens Next

USD 305 said final calculations will be shared Aug. 11.

The board’s regular meetings are scheduled for 5:30 p.m. at the district office, 1511 Gypsum Ave. The July packet describes the Aug. 11 budget presentation as a special meeting, so the district may announce additional scheduling details.

Revenue-neutral-rate and budget hearings are scheduled for Sept. 8.

Kansas law requires the board to give taxpayers an opportunity to speak before voting. Approval to exceed the revenue-neutral rate requires a majority vote conducted by roll call after the hearing begins.

The board may approve a rate below the proposed ceiling, but it cannot approve a rate above the figure submitted to the county clerk and included in the public notice.

The August release should provide the first clear answer to the central question: How much more property-tax revenue is USD 305 seeking, and what would it cost Salina property owners?