During a budget work session on Tuesday, the Manhattan City Commission directed city staff to publish the 2026 budget, opting for a 1.35 mill levy increase.

That brings the mill levy to 54.459, which will increase property taxes for the average Manhattan resident by 7.7%, based on a 5% average increase in existing, single-family home valuations.

For example, a homeowner who paid $610.75 in property taxes on a $100,000 home in 2025 would pay $657.59 on a home worth $105,000 in 2026.

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City officials will review proposals and suggest potential strategies for trash service consolidation in Aggieville and continue budget discussions at Tuesday’s work session.

In 2024, city staff first proposed five site locations for compactors to be installed to serve the district. The estimated cost to construct those compactors is between $1.4 million and $1.6 million. City administrators are looking at potentially issuing a request for qualifications to select a waste management contractor to plan, design and implement a solid waste program specifically for Aggieville.

That company would assist the city in putting together site specifications, outlining the procurement of five compactors and assist with developing and implementing a trash service consolidation program. The city would look to finance construction using tax increment finance and sales tax revenue.

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The Manhattan City Commission on Tuesday directed city staff to cap the mill levy increase for the 2026 budget at 1.75 mills, trimming back the previously proposed cap of 2 mills at last month’s budget work session.

That would take the mill levy to 54.859 and could mean as much as an 8.5% average increase in property taxes for Manhattan residents, based on a 5% average increase in existing, single-family home valuations.

For example, a homeowner who paid $610.75 in property taxes on a $100,000 home in 2025 would pay $662.42 on a home worth $105,000 in 2026, or  8.45%.

To view the full article visit theMercury.com.

Click here for more local news.

The post City budget proposal would raise property taxes as much as 8.5% appeared first on News Radio KMAN.