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You are at:Home»Local News»City officials to discuss sales tax increase as potential strategy to increase General Fund balance

City officials to discuss sales tax increase as potential strategy to increase General Fund balance

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By Brandon Peoples on February 26, 2024 Local News, Manhattan

Manhattan city staff will meet with the city commission Tuesday to discuss a strategy for increasing revenues to the general fund and a proposed sales tax question to be posed to voters.

Agenda documents for the work session (see below) show city staff favoring a strategy to ask a sales tax question at the August primary, taking the current 1% permanent sales tax up to as much as 2%. The sales tax increase would allow the city to build up its general fund dollars an extra $7.5 million to $15 million annually. The city would need to draft a resolution by June to be on the August primary.

Another strategy the city says could consider is to ask for the sales tax question in August, and if successful, then ask voters to renew the quarter percent quality of life sales tax. Doing so would give city officials a starting point for funding a new indoor aquatic facility, that potentially could open in 2027 or 2028.

City commissioners will also receive an update on the East Manhattan Gateway Plan at Tuesday’s work session. The meeting begins at 6 p.m.

Item B. 2024 Financial Update
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Brandon Peoples
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KMAN Program Director and The Mercury news reporter. Contact Brandon at Brandon@1350kman.com

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