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You are at:Home»Local News»Manhattan City Commissioners approve budget

Manhattan City Commissioners approve budget

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By KMAN Staff on August 16, 2017 Local News, Manhattan, Top Story
The 2018 budget was narrowly approved by the Manhattan City Commission Tuesday night.
Lingering issues with funding for the Convention and Visitors Bureau and aTa Bus Service refused to sell a pair of commissioners on the budget, which was passed by a 3-2 margin.
Highlights of the budget include a uptick of .35 mills on the mill levy, a 1% increase in the tourist and transient guest tax, and large changes on the Convention and Visitors Bureau (CVB) and aTa bus sheets that forced the two “no” votes.

Commissioner Wynn Butler expressed displeasure at what he perceived to be too large of an increase for bus service, while both Butler and Commissioner Linda Morse believed the CVB had several flaws in its funding. With nearly $167,000 in property taxes slated to go straight to the CVB, Butler indicated he believed that is an unnecessary cause of the levy increase. Butler also cited his displeasure with the budget for aTa bus more than doubling from 2017, as well as using property tax money to fund part of the Convention and Visitors Bureau budget for next year.

Morse believed the CVB was underfunded and needed more support with lagging sales tax revenue. Commissioner Morse said she wasn’t happy, primarily with the lack of funding for the Bureau, which had it’s budget slashed by $200,000, saying that Manhattan needs a strong convention center more than ever.

Assistant Finance Director Hillary Badger then stated the Bureau’s perceived cut was in fact a one-time increase for 2017, with both Badger and Chamber of Commerce President Lyle Butler confirming the amount received by the Bureau was the amount they requested.

Mayor Usha Reddi said the original proposed increase was over three mills, though that number was whittled down significantly by the first hearing and down even more by Tuesday night.

The Commission also approved five additional stipulations within the budget, as well as approving a $1 million recoverable grant to the Manhattan Housing Authority. The MHA’s main tower complex at 300 N. 5th Street has been closed for renovations for several months.

The MHA had asked the city for a $1 million recoverable grant to replace aging infrastructure including the replacement of the sewers and windows in the 12-story apartment building at 5th and Leavenworth.

MHA Executive Director Joann Sutton said those issues are the most pressing, but one other lingering issue is that the building, which is over 50 years old currently has no fire sprinklers.

Sutton says the MHA is in the very early stages of potential upgrading to sprinklers, though early indications say they could nearly double the budget of the project.

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