Manhattan sets Sept. 15 hearing on possible property-tax increase
The Manhattan City Commission voted 3-2 on July 7 to schedule a public hearing on whether the city should exceed the revenue-neutral property-tax rate as it develops the 2027 budget.
The hearing is scheduled for Sept. 15. It gives residents a specific opportunity to comment before the commission takes final action on the property-tax question and the broader budget process.
The vote itself did not increase taxes, set a final tax rate or establish how much additional revenue the city might collect.
What the commission approved
The commission approved a resolution concerning the city’s intent to exceed the revenue-neutral rate. The action was recorded during the commission’s regular July 7 meeting and passed by a 3-2 vote.
The resolution moves the issue toward a formal public hearing. It does not resolve the final tax decision. As of Aug. 7, the city had not adopted a final tax rate, a total revenue increase or specific appropriations for the 2027 budget.
City staff had proposed keeping the mill levy flat while addressing the city’s long-term financial needs. The commission’s action means the city is continuing to evaluate its property-tax revenue position rather than simply adopting that staff proposal as a final decision.
How the tax question fits the budget
City officials have described property-tax revenue as one part of the general-fund picture. Sales taxes and fees also contribute to the fund, so the property-tax decision is being considered alongside other sources of municipal revenue.
The city’s stated figures put general-fund property-tax revenue at about $9 million. The city has also identified a general-fund operating need of $38 million. The property-tax figure represents approximately 23.7% of that operating need.
Those figures do not show how much revenue the city would collect if the commission ultimately approves exceeding the revenue-neutral rate. They also do not identify which services, programs or appropriations would be affected by the final 2027 budget. The approved materials leave those decisions unresolved.
For property owners and other residents following the budget, the distinction matters: the July vote began the next step in the process, but it was not a final tax increase.
Upcoming budget dates
The Sept. 15 hearing is the next announced public checkpoint on the revenue-neutral-rate issue. City officials said additional budget discussions are expected before the hearing, and final budget adoption is expected afterward.
The city’s budget timeline also identifies Aug. 18 as a deadline for ballot language related to possible sales-tax questions. The materials do not confirm that a sales-tax question will appear on the ballot. They identify Aug. 18 only as a deadline connected to possible ballot language.
That means the city’s budget decisions are moving through more than one track: the commission is preparing the 2027 budget, considering the property-tax revenue-neutral-rate issue and working within a timeline that includes a possible sales-tax question.
The next major public opportunity to address the property-tax issue is the Sept. 15 hearing. Until the hearing and subsequent budget action are completed, the final tax rate, any change in total property-tax revenue and the specific 2027 spending plan remain unsettled.
Sources
- City of Manhattan Commission to Consider Exceeding Revenue Neutral Rate, City of Manhattan
- City Commission Regular Meeting — July 7, 2026, Manhattan City Commission meeting record
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