MANHATTAN, Kan. (WIBW) – A City of Manhattan Commission meeting is underway to discuss whether the city will exceed the Revenue Neutral Rate as they plan the 2027 budget.
The Riley County website explains the Revenue Neutral Rate as “when a taxing subdivision budgets the exact same amount of property tax revenue, in dollars, for the upcoming budget year as they did for the current year.”
If a taxing entity plans to collect more property tax revenue than the previous year, it is required to notify the public and hold a public hearing. This requirement applies even if the mill levy stays the same, because higher property values can still lead to more property tax dollars being collected.
The City Commission is scheduled to consider a resolution that expresses the commission’s intent to levy a property tax exceeding the Revenue Neutral Rate on July 7, with more budget discussion to follow before final adoption on Sept. 15.
The City of Manhattan is encouraging residents who want to stay informed to watch or attend future discussions and contact City Commissioners with feedback as the process continues.
Upcoming dates include:
August 11, 2026: Budget work sessionAugust 18, 2026: Ballot Language dueSeptember 15, 2026: Budget hearing
At a work session meeting on June 30, staff presented a budget proposal that would keep the property tax mill levy flat while maintaining services and addressing long-term financial needs. Three of the five Commissioners expressed their desire to see a reduction in the mill levy, and all five Commissioners requested additional details.
The discussion so far has focused on several key issues, including rising property valuations, the City’s debt obligations, service levels, and whether additional reductions are possible.
The June 30 work session also included discussion of sales tax renewal options. The existing dedicated sales taxes for road maintenance and quality of life are approaching expiration. The sales tax renewal presentation outlined several potential scenarios and noted that the Commission will need to provide direction in time to meet August deadlines for a possible November ballot question.
To give scope to property tax representation in the budget, City Manager Danielle Dulin says, “our current property tax revenues in the General Fund totals $9M of the $38M, or 23.7%, needed to operate City departments/services. The remaining operating expenses are funded through other sources, primarily sales taxes and other fees.”
In addition, approximately 11.8% of a Manhattan resident’s total property tax bill is used to fund city services and debt. The rest is distributed amongst the other taxing entities in the region, including the state, counties, schools, police, and libraries.
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