Olney City Council Lowers 2026 Property Tax Rates

Olney residents will see a lower city property tax rate in the coming year after the City Council voted Aug. 25 to reduce the rate to $0.862126 per $100 of valuation for the 2026 fiscal year, which begins Oct. 1.

The new tax is lower than the city’s current rate of $0.9782, and is a compromise from the no-new-revenue rate of $0.832344 that City Administrator Simon Dwyer recommended.

Mr. Dwyer told council members that the no-new-revenue rate would provide meaningful relief for taxpayers while ensuring the city could meet its obligations, including costof- living raises for employees, hiring additional staff at the wastewater and water treatment plants, and keeping up with equipment and infrastructure needs.

“This is a substantial savings to residents and homeowners while still providing the city with the resources it needs to operate effectively,” Mr. Dwyer said.

The rate approved by the Council was the highest possible levy the city could make without getting voter approval.

Mr. Dwyer said the rate cut to $0.862126 leaves the city with a projected budget surplus of about $133,000, thanks to rising property valuations, higher-than-expected sales tax collections, and increases in franchise fees.

That surplus allows the City to make good on the Council’s promises to citizens to repair alleys, and the lower rate fulfills the Council’s pledge to bring down taxes it hiked in fiscal year 2024 to fill a budget gap.

Property values in Olney rose this year following reappraisals by the Young County Appraisal District. Mr. Dwyer explained that while new state laws created exemptions for some business property, overall valuations were still higher, boosting expected revenue even with the lower tax rate.

Council members discussed the importance of setting a rate that would provide stability in case revenues dip in future years.

The council’s decision initiates a process that will include the publication of the proposed rate, a public hearing, and final adoption before the new fiscal year begins on October 1.

The public is invited to a public hearing on Sept. 8 at 6 p.m. at City Council chambers to discuss the new rate.