Jason (last name not specified), the city’s finance presenter at the June 24 work session, told the Manhattan City Commission that revenue trends in 2024–25 have been positive and that the administration will use those results to shape the 2026 recommended budget.

Jason said the city realizes roughly $146 million to $151 million in annual revenue across many streams and that utility fees, property tax and sales tax are the main drivers. He reported realized sales-tax growth of about 5% in 2024 and that sales tax collections through the first five months of 2025 were about 4–4.6% higher year over year. The finance presentation showed a forecasted city budget increasing from the adopted 2025 level toward an anticipated $237 million for 2026 when transfers and beginning fund balances are included.

On property taxes, staff summarized the valuation data provided by Riley and Pottawatomie counties, reporting combined valuation growth of about 3.82% (roughly $27,540 per mill). Finance staff noted that the revenue-neutral mill rate calculated from the certified valuations would be about 51.156 mills compared with last year’s rate of 53.109 mills; the commission must take preliminary action on the revenue-neutral rate in the coming weeks. Jason said the city expects to present the city manager’s recommended budget on July 8 and will host public engagement forums and hearings in mid-August and September (forums tentatively Aug. 16–22 and hearings Sept. 2; the ordinance hearing is currently anticipated Sept. 16).

Jason and commissioners also discussed dedicated sales-tax allocations (the 0.95 percentage with sub-allocations for economic development, parks/recreation and street maintenance) and recent one-time pressure such as a large snow-event expense in January that staff absorbed because of the stronger revenue picture.

Mayor and commissioners asked about the format of the upcoming public engagement forums; staff said they expect department staff and utility representatives to be present to answer questions and that commissioners may attend. The city manager reminded commissioners that the recommended budget will be presented July 8.

Ending: Staff flagged the need for a revenue-neutral action in three weeks and scheduled public forums and hearings ahead of formal budget adoption this fall.