The average homeowner will see an increase of up to 13.6% in their Manhattan city property taxes next year, following a commission vote Tuesday.
City commissioners at their meeting approved a resolution to levy a property tax exceeding the “revenue-neutral rate,” which is the rate at which the city would generate the same property tax revenue as the previous year using the current year’s assessed valuation.
The state requires the city government to take certain steps to exceed that rate.
Commissioners did not set a specific rate but passed the maximum increase at 52.929 mills, which they said would provide flexibility as they complete the 2025 budget.
The owner of a $100,000 home in 2024 would have paid $562.68 in taxes. That person in 2025 would pay $639.12 in city taxes on a home now worth $105,000, based on an average increase of 5% for existing single-family homes in Riley County.
That’s an increase of $76.44 or 13.6%.
Officials said the increase is intended to help close the $4 million gap between expenditures and revenues in the general fund.
Commissioners recognized the need for some increase but differed on the appropriate amount.
Karen McCulloh supported transparency about the likely tax increase, and acknowledged that it was significant but necessary to run the city responsibly.
“This is a cost of doing business,” she said. “And we really have to pay our people. We don’t have enough people in finance, and so our bonds cost us more money. We’ve got to figure out a way to make this government efficient enough.”
Mayor Susan Adamchak disagreed, saying a more moderate option for residents needs to be pursued because of the city’s current financial standing.
“I just think it’s going to be an uphill battle,” she said. “I think we need to really try to find a little compromise now and work within those parameters.”
The resolution passed on a vote of 4-1, with commissioner John Matta voting no because all proposed tax raises were too high.
The average tax increase for all types of property in the last year was 4%.
“I’m not willing to raise them more than 7%,” he said. “Really, my number is 6, but you have to make up for the police department budget. So all these scenarios are way over.”
Commissioners set a public hearing for 6 p.m. Sept. 3 at City Hall to discuss the proposed tax increase further.
