Manhattan – Week of July 20 2025
Wareham Hall Incentives; Property Tax Increase; Tax Delinquencies; Child-Care Licensing Subsidy; County Slashes Budget;
City Commission Approves Wareham Hall Incentives After Public Outpouring of Support
City Commission Sets Path for Property Tax Increase in 4-1 Vote
Rising Property-Tax Delinquencies Impact City Budget
Riley County Taxpayers Subsidizing Child-Care Licensing for Four Neighboring Counties
Riley County Slashes Budget Requests, Cutting $1.25 M and Denying Most New Positions
City Commission Approves Wareham Hall Incentives After Public Outpouring of Support
MANHATTAN - Following a lengthy public hearing with overwhelming community support, the Manhattan City Commission voted to approve a series of economic incentives for the Wareham Hall revitalization project. The approved package includes the issuance of industrial revenue bonds, a corresponding 10-year, 100 % property-tax abatement tied to performance metrics, and a sales-tax exemption on construction materials. Project director Blade Mages explained that a for-profit entity is required to leverage an estimated $4.5 to $6 million in federal historic tax credits, which would otherwise have to be raised locally. While the city is also considering a $350,000 reimbursement for public-infrastructure work, supporters argued the city’s approval was critical to unlocking the federal funds, noting that the nonprofit could pursue tax exemption through state statutes regardless, making the abatement a fiscally sound decision to advance the project.
City Commission Sets Path for Property Tax Increase in 4-1 Vote
MANHATTAN - The Manhattan City Commission voted 4-1 to publish its intent to exceed the revenue-neutral rate, setting the stage for a property-tax increase in the upcoming budget. The commission directed staff to set the maximum potential mill-levy increase at two mills over the current rate of 53.109, which would allow for a 1 % cost-of-living adjustment (COLA) for city employees but no funding for deferred vehicle, equipment, or building maintenance. Commissioner John Matta, the lone dissenting vote, expressed strong opposition, arguing that the proposed increase could equate to a residential property-tax hike of over 25 % in just two years and that the city should not set a high ceiling it is unlikely to lower. Other commissioners felt the higher published rate provided necessary flexibility for budget discussions, with a final decision and public hearing scheduled for September 16th.
Rising Property-Tax Delinquencies Impact City Budget
MANHATTAN - City administrators clarified that a significant driver of the proposed property-tax increase is the rising rate of delinquent payments. While the Riley County Police Department’s budget request is increasing by 5.5 %, the required mill levy to cover it is effectively a 6.8 % increase once delinquent payments are factored in. The delinquency rate has risen from a five-year average of 1.83 % to 2.67 % in 2024. Because the city is statutorily required to fund the full RCPD budget regardless of revenue shortfalls, it must transfer money from the general fund to cover the gap, a transfer that amounted to $368,000 in 2024. Staff recommended budgeting for the delinquency to create a more stable funding mechanism for the police department and avoid pulling from general-fund cash reserves.
Riley County Taxpayers Subsidizing Child-Care Licensing for Four Neighboring Counties
RILEY COUNTY - A report from the Riley County Health Department revealed that county taxpayers are covering a significant funding shortfall for child-care licensing services provided to four other counties. Health Department Director Diane Creek explained that while Riley County serves as the regional hub for licensing in Geary, Clay, Dickinson, and Pottawatomie counties, the state funding provided is insufficient to cover the costs. The total cost to Riley County for providing these services to its neighbors is $141,316 annually. While the department is under contract with the state (KDHE) through June 2026, staff recommended pursuing several avenues to close the gap, including increasing local fees, using a debt set-off program for over $200,000 in unpaid fees across all five counties, and meeting directly with commissioners from the other counties to request they cover their portion of the shortfall.
Riley County Slashes Budget Requests, Cutting $1.25 M and Denying Most New Positions
RILEY COUNTY - In a significant budget work session, the Riley County Commission made major cuts to departmental requests, most notably reducing the transfer to the Capital Improvement Projects (CIP) fund by $1 million and cutting the Public Works budget by an additional $250,000. The commission also scrutinized requests for new and expanded positions, ultimately denying a new Criminal Investigator for the County Attorney’s office and a full-time Custodian for Public Works. A compromise was reached for the Historical Museum, approving 325 hours for an as-needed position instead of the requested 650, after an initial consensus to deny it entirely. The commission did approve a restructured seasonal RN position for the Health Department and a budget-neutral increase in hours for Community Corrections staff, which was framed as correcting a past budget error. These decisions reflect the commission’s effort to control spending ahead of finalizing the 2026 budget.
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