Manhattan commissioners weigh up to 2-mill levy to fund 2026 budget, staff pay and reserves

City Manager Danielle Doon presented the citycommission with a recommended 2026 budget on Aug. 12 that would rely on a mill-levy increase of as much as 2.0 mills to fund employee pay adjustments, equipment replacements and to rebuild the citygeneral-fund reserve.

Doon said the recommended package contains an increase that would raise the citymill levy to about 55.109 and would capture roughly $1,495,000 from an additional 2-mill increase; the revision shown to commissioners also reflects $1,400,000 in additional property-tax revenue from market growth and community improvements. "This is the recommended budget that I did put before you," Doon said during the presentation.

Why it matters: commissioners framed the discussion as balancing pressure on property taxpayers with the city—s need to retain staff and maintain service levels. Commissioners acknowledged both rising operating costs (asphalt, cement, vehicle maintenance) and retention problems: Doon said half the city workforce has been with the city one to five years and cited an example of a street superintendent leaving for the county for a roughly $9,000 annual pay increase.

Most important facts

- Staff presented three scenarios: Scenario A (a 1.134-mill increase, presented July 8, with no cost-of-living adjustments or vehicle/equipment replacements); Scenario B (the full 2-mill proposal, which includes a 2.4% cost-of-living adjustment and annual salary adjustments plus $187,000 for vehicle/equipment or building maintenance); and Scenario C (a middle option for discussion). Doon said the 2-mill package would bring…