Show All Answers

1. What is the size of the entire 2018 city budget?

General Fund	$29,593,130
Special Revenue Funds	$53,759,035
Debt Service	$27,910,111
Enterprise	$37,305,600
Total	$148,567,876

2. What is the sales tax rate in Manhattan?

State of Kansas sales tax	6.5%
Both Riley County/Pottawatomie County retail sales tax	1.0%
City of Manhattan sales tax	1.0%
Quality of life sales tax	0.25%
Street maintenance sales tax	0.20%
Total sales tax rate	8.95%
~Additional sales tax in Manhattan~
Downtown Redevelopment Transportation Development District sales tax	0.50%
Total sales tax for Downtown Redevelopment shoppers	9.45%
Blueville Nursery Transportation Development District sales tax	0.50%
Total sales tax for Blueville Nursery shoppers	9.45%
McDonald Transportation Development District sales tax (East Bluemont)	0.50%
Total sales tax for McDonald shoppers	9.45%

3. What is the outstanding estimated total debt of the city as of the end of 2017?

$275,867,472

4. What is the city mill rate and the combined mill rate of the city, Riley County and USD 383 for 2018?

City Mill Rate	48.357 mills
USD 383 Mill Rate	56.268 mills
Riley County Mill Rate	38.886 mills
State of Kansas Mill Rate	1.500 mills
Total Mill Rate	145.011 mills

5. Where do my property taxes go?

Each dollar of property taxes paid is split between several local entities.Read about how each dollar is split. 

• 2018 Property Tax Statement Example - Commercial Business
• 2018 Property Tax Statement Example - Residential Homeowner

6. Where do the sales taxes collected go?

Each dollar of sales taxes paid is split among several local entities. Read about the details of how taxes are split.

7. What is a special assessment?

A special assessment is a fee for public improvement projects such as streets, sewers and waterlines that is levied against properties that will benefit from an improvement project. The fee consists of principal and interest and is usually paid over 20 years. The interest rate paid by the property owner coincides with the interest rate and the maturity date for the bonds that are sold to finance the project. Read the Special Assessment Process Explanation.

8. Why are special assessments good for Manhattan and its residents?

In many states and cities, subdivision improvements are not financed by special assessments. Instead a developer or property owner is required to obtain private financing at conventional interest rates. The cost of the improvement and financing is added to the price of the lots and homes sold by the developer. Because the City of Manhattan issues special assessment general obligation bonds to finance subdivision infrastructure improvements, which are exempt from federal and state income taxes, developers and homeowners are able to secure lower interest rates on the specials they do pay. Additional advantages are that public financing of infrastructure improvements reduces the cost of housing in our community, helps promote growth in the local tax base and also helps to stimulate the local economy. All these benefits are achieved with no monetary loss to the property owner because a special assessment project generally increases the value of the property by an amount at least equal to the special assessment fees levied on the property.

9. How can I learn more about special assessments?

You may contact Rina Neal, City Controller, in the Finance Department by phone at (785) 587-2417 or email neal@cityofmhk.com.

10. How are special assessments paid by the property owner once they are authorized?

The property owner has several options for payment. If the special assessment fee is from a newly completed project, the property owner can pay off the special assessment in full and not incur any interest charges. They may also pay off a portion of their assessments with a minimum payment amount of 10% per type of special assessment. This early payoff is made after the last step of the special assessment process that authorizes the levy of the special assessment. Generally, this period to pay in full is open for approximately 30 days. Each property owner of record will be notified of the early payoff option. They are also entitled to take a discount for early payoff because bond issuance costs and discount fees can be avoided when paid in full. If the property owner does not choose to pay the fee when the project is complete, they can pay the principal (plus interest) in installments of up to 20 years. The property owner is billed annually through the County Treasurer who adds the amortized fee to the property tax bill each year until paid in full. The interest rate paid is equal to the rate of interest on the tax exempt bonds, which are sold by the City to finance the project on a long-term basis.

11. Can a property owner pay off special assessments after the 30 day early pay off period has expired?

Yes, the City has a prepayment program available. Once a project is bonded for long-term financing, the principal and interest payments are locked in for the bonding term so direct payoff of principal with interest cannot be made against the bond itself. However, under the prepayment program, the City can make the payments on the bonds on behalf of the individual property owner. To take advantage of this program, the property owner contacts the Finance Department of the City and requests information on the prepayment program. The Accounting Division will prepare an information packet that includes a computation of the present value amount for principal and interest on the property owner's outstanding special assessments. This computation includes the savings that will be realized for early payoff based on an estimated payoff date. If the property owner decides to proceed, they contract with the City and agree to pay the present value amount specified. This prepayment will be placed into a Special Assessment Escrow Fund that earns interest, and the City will make the yearly bond payments for the property owner. For additional information on this program and current interest rates, contact the Finance Department at (785) 587-2465.

12. Why would a property owner want to pay off their specials early?

There are several benefits to the property owner. The property owner can make the property free and clear of all special assessments liens. This may help to make the property more marketable and may permit the owner to take out a second loan on a property. If property owners cannot invest at a rate higher than the rate being charged on their specials, they could pay off this obligation and be money ahead. This is comparable to paying off high interest debt.

13. In terms of dollars, how large is the special assessment program?

A complete breakdown on special assessment debt and any other financial information for the City is available in the Annual Operating Budget and in the financial section of the Comprehensive Annual Financial Report (CAFR).

14. How does the city invest idle funds?

The City of Manhattan’s investment policy is tightly controlled by Kansas statutes (K.S.A. 12-1675 through 12-1677b) which limits the types and duration of any investment that the city may make. Although the city has been granted ‘expanded investment powers’ by the state of Kansas Pooled Money Investment Board (PMIB), these expanded powers only allow for an investment to be extended to four years instead of two as noted in the aforementioned statutes. The city bids each investment to all local banks and requires each investment to have proper collateral to ensure the safety and liquidity of that investment. The city’s investment portfolio is ‘laddered’ in a manner where an investment is maturing nearly every month. This practice allows the investment committee to make prudent decisions of when to reinvest funds based on operational and funding needs. Any questions regarding the city’s investment policy can be directed to the Assistant Finance Director at badger@cityofmhk.com