OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Manhattan City Commission Meeting – June 30, 2026: Airport Update, 2027 Budget, and Sales Tax Renewal

City CommissionTuesday, June 30, 2026
BodyManhattan, Kansas
SessionCity Commission
DateTuesday, June 30, 2026
StatusFILED
Video Record
0:00 / 2:15:37

Transcript — Verbatim
0:00

Well we'll move on to the next item on our agenda, which is an update on the Manhattan Regional Airport.

0:20

Good evening, Mayor Commissioners.

0:21

Brandon Keyser, real quick update on some things that are going on at Manhattan Regional Airport.

0:27

As you're all aware, we're gearing up for a rather sizable infrastructure project, and that is to replace our primary taxiway, Taxiway Alpha.

0:34

And just for the crowd, you know, just as a quick reminder, Taxiway is a pathway on an airport that connects to runway to a ramp.

0:40

Critical component of airfield operations.

0:44

So we are we have completed taxiway alpha's design, and one of the integral pieces that comes out of design is how to phase the construction.

0:54

And so when I when we walked into this project, I had a demand that this construction was not going to impact any type of operations on the airfield.

1:03

And so our consultant Olson, which is in the crowd, uh came up with all these different scenarios.

1:09

And we worked with the FAA and with our airport stakeholders to come up with a solution to allow this construction to occur that's also feasible that does not impact operations.

1:19

And what you're seeing here is that construction phasing schedule of what the FAA airport, Olsen, and our stakeholders agreed upon.

1:27

You can see it's five phases, roughly four phases of construction that starts would start in March of uh 2027 and be completed in November of 2027.

1:36

Again, I'll point out if you have any flights you're planning to fly next year.

1:40

This project will not impact your flights, so go ahead and book them.

1:44

Realistically, all that you'll see is if you got a window seat and you pull open the shade, you'll be able to see some construction, see how neat it is, and then taxi out to the primary runway.

1:53

So schedule overview, November 18, 2025.

1:56

Came to the commission seeking approval to uh move forward with design.

2:00

The reason for that is the FAA uh gave us an opportunity to do all three different sections of Taxiway Alpha, get discretionary funds, and then also take advantage of a better grant split.

2:13

And I'll talk about that in a little bit.

2:15

And so traditionally, uh Taxiway design for our project design uh this size typically takes about a year.

2:22

It was compressed substantially because we had to hit that June 1st grant application deadline.

2:27

So we completed design uh April 17th.

2:29

We bid the project April 21st.

2:31

We had a build up bid opening on May 19th.

2:34

It was a very competitive bid opening.

2:35

We had four different uh major contractors that submitted for this project.

2:40

Uh the lowest bid was Clarkson Construction, which also has uh familiarity with our airport because they're the contractor that did the runway project.

2:47

So following that bid opening, we had two weeks to put together a hundred and twenty-three-page grant application and get to the FAA.

2:55

So I just want to give a big shout out to my assistant airport director, Kim Boyce.

2:59

She's a big part of us being able to hit that deadline.

3:02

And actually, we got it done two days in advance.

3:05

So we submitted that two days prior to it.

3:07

So now we're in a holding period.

3:09

We're waiting for this really large check from the FAA.

3:11

Uh once we actually get that grant offer, I'm gonna come back to the city commission to secure approval to uh accept the grant offer and award the construction contract.

3:20

And if you grant that, then we'll move forward with construction starting in March with completion in November.

3:27

Project funding, yeah, the big question, right?

3:29

How much does it cost to build 7,400 feet by 50 feet wide of a taxiway?

3:35

It's a lot of money.

3:36

It's 15.6 million dollars is what it all comes down to.

3:41

Uh but one of the things that I'll point out, again, like I mentioned, uh, since we were able to get that grant application submitted on before June 1st, we're able to take advantage of a better split.

3:50

Traditionally, our grants that we receive are 90 to 10 split, 90% covered by the federal government, 10% by uh local municipality US.

3:59

Uh but luckily with FAA reauthorization, we were able to take advantage of a 95-5 split.

4:04

And so we're looking to receive roughly 15 million from the FAA, and the city's cost is a little over 700.

4:11

I'll pause there for any questions that you might have before I transition on.

4:15

I don't know if I'll answer them, and my intent was to just hear all your questions, and then when I bring it back, I'll be really getting it.

4:21

No, I'm just kidding.

4:22

I'll answer all the questions.

4:23

As I recall in some of our previous conversations, the airport takes in some fees out there ticket sales that can't be used for anything else other than eligible projects.

4:35

This type of project.

4:36

Absolutely.

4:37

So I would assume this the city share of this would be mostly paid for by those.

4:42

Yeah, so what you're referring to is the passenger facility charge program.

4:45

It's a program that's created by the federal government.

4:47

It allows airports of our size to go out and uh fill out an application, utilize that that city share to put towards those PSCs or allow those PSCs that we get to help pay for that.

5:00

It will take a little while for us to realize those funds, but my full intention is this project is completely eligible for that, and so I intend to put that onto the PSC application once the project is all done and we know all the information.

5:13

So it's at a point, the city will be in reimbursed for that amount plus interest.

5:19

Again, shameless plug.

5:21

The more people that fly out of Manhattan, the more the more PSCs we collect, the quicker we can pay off these things.

5:30

That's it.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis█████████████████████████████████████████████57%
Public Engagement██████████13%
Fiscal Sustainability█████████11%
Engineering And Infrastructure██████7%
Debt Management███4%
Transportation Safety██2%
Personnel Matters██2%
Tourism And Convention██2%
Parks and Recreation1%
Summary of Proceedings

Manhattan City Commission Meeting – June 30, 2026: Airport Update, 2027 Budget, and Sales Tax Renewal

This meeting covered three major items: an update on the Manhattan Regional Airport’s Taxiway Alpha replacement project, the proposed 2027 city budget with a focus on debt stabilization, and a discussion on renewing and potentially increasing dedicated sales taxes. Commissioners debated the balance between property tax relief, service levels, and infrastructure investment. Public comments addressed affordability, library funding, and the regressive nature of sales taxes.

Airport Update

  • Brandon Keyser, Airport Director, reported that the design for Taxiway Alpha replacement is complete. Construction is planned in five phases from March 2027 to November 2027, with no impact on flight operations.
  • The project cost is $15.6 million, with a 95-5 federal/local split (FAA reauthorization). The city’s share is approximately $700,000, intended to be recovered through Passenger Facility Charges (PFCs) over time.
  • Year-to-date passenger numbers (January–May 2026) are within 580 of the 2025 record year. Flight schedules were reduced to one Chicago route in June–July due to FAA capacity rulings, but a second Chicago route returns in August.
  • American Airlines will offer a special direct flight from Manhattan to Phoenix for the K-State vs. Arizona State football game (October 23–25, 2026).

Proposed 2027 Budget

  • City Manager Danielle presented the recommended budget. Total revenues are projected at $179 million; total expenditures at $186 million, intentionally spending down cash balances for specific projects.
  • Assessed valuation rose $50 million to $798 million, generating a $2.7 million increase in property tax revenue if the mill levy is flat. The budget proposes moving 4 mills from the general fund to the bond and interest fund to stabilize the debt service fund, bringing it to 4.9 mills (close to pre-2020 levels).
  • Other revenue adjustments: 2% increase in franchise fees, 3% water rate increase, 4% stormwater rate increase (equivalent to $0.50 per ERU), and conservative 1.75% sales tax growth assumption.
  • General fund expenditures increase by $656,000 (1.7%), including 3% salary increases and $700,000 for capital equipment. Four full-time positions were eliminated.
  • Ben Hart from Baker Tilly updated the debt challenge: a $3.5 million annual gap appears by 2031, but the proposed mill levy shift resolves it without going negative.
  • Commissioners expressed mixed views. Commissioners McCullough and Fox argued for a mill levy reduction to offset rising property valuations, while Mayor Adams and Commissioner Morrison stressed the need to fund services and infrastructure. Commissioner Von Lindel asked for detailed department budgets and a comprehensive debt schedule.
  • Public comment: Gary Oles criticized overall spending and noted the burden on low-income residents. Linda Cook, Library Board President, defended the library’s budget increase due to deferred maintenance and security needs. Annika Lewis shared her positive experience with city services offsetting costs.

Sales Tax Renewal Discussion

  • City Manager presented three scenarios for a new dedicated sales tax to replace the expiring 0.2% street tax (2026) and possibly the 0.25% quality of life tax (2027):
    • Scenario A: 0.5% increase ($8M/year) – funds streets and fire training facility.
    • Scenario B: 0.75% increase ($12M/year) – allows streets progress, fire training, and some deferred maintenance.
    • Scenario C: 1.0% increase ($16M/year) – includes funding for parks (Northeast and Northview) and broader capital needs.
  • Impact on a family of four grocery bill: $0.20 to $2.18 per week depending on scenario. Back-to-school shopping: $0.56 to $6.18 additional sales tax.
  • Commissioner Fox proposed a 0.9% increase with 40% for streets, 12.5% for fire facilities, and remainder for parks, zoo, cemetery, and social services (removed from general fund).
  • Debate arose over whether to repeal the quality of life tax one year early and combine it with the street tax. Commissioner Morrison supported combining now to avoid a second vote amid inflation; Commissioner McCullough opposed early repeal.
  • Public comment: Kirk Korepture noted that many shopping areas already have TIF/district taxes pushing rates near 10%, and that the total sales tax burden (not just the increase) should be considered.

Key Outcomes

  • No formal votes were taken on the budget or sales tax proposal. The next budget work session is scheduled for August 11, 2026, with a revenue neutral rate resolution on July 7, 2026, and final adoption on September 15, 2026.
  • Staff will provide detailed department budgets and a complete debt schedule to commissioners.
  • The sales tax ballot question must be finalized by August 18, 2026, for the November election. The commission will continue discussions at a July work session.
  • The airport project will return for approval of the FAA grant and construction contract once the grant offer is received.

Meeting Transcript

Well we'll move on to the next item on our agenda, which is an update on the Manhattan Regional Airport. Good evening, Mayor Commissioners. Brandon Keyser, real quick update on some things that are going on at Manhattan Regional Airport. As you're all aware, we're gearing up for a rather sizable infrastructure project, and that is to replace our primary taxiway, Taxiway Alpha. And just for the crowd, you know, just as a quick reminder, Taxiway is a pathway on an airport that connects to runway to a ramp. Critical component of airfield operations. So we are we have completed taxiway alpha's design, and one of the integral pieces that comes out of design is how to phase the construction. And so when I when we walked into this project, I had a demand that this construction was not going to impact any type of operations on the airfield. And so our consultant Olson, which is in the crowd, uh came up with all these different scenarios. And we worked with the FAA and with our airport stakeholders to come up with a solution to allow this construction to occur that's also feasible that does not impact operations. And what you're seeing here is that construction phasing schedule of what the FAA airport, Olsen, and our stakeholders agreed upon. You can see it's five phases, roughly four phases of construction that starts would start in March of uh 2027 and be completed in November of 2027. Again, I'll point out if you have any flights you're planning to fly next year. This project will not impact your flights, so go ahead and book them. Realistically, all that you'll see is if you got a window seat and you pull open the shade, you'll be able to see some construction, see how neat it is, and then taxi out to the primary runway. So schedule overview, November 18, 2025. Came to the commission seeking approval to uh move forward with design. The reason for that is the FAA uh gave us an opportunity to do all three different sections of Taxiway Alpha, get discretionary funds, and then also take advantage of a better grant split. And I'll talk about that in a little bit. And so traditionally, uh Taxiway design for our project design uh this size typically takes about a year. It was compressed substantially because we had to hit that June 1st grant application deadline. So we completed design uh April 17th. We bid the project April 21st. We had a build up bid opening on May 19th. It was a very competitive bid opening. We had four different uh major contractors that submitted for this project. Uh the lowest bid was Clarkson Construction, which also has uh familiarity with our airport because they're the contractor that did the runway project. So following that bid opening, we had two weeks to put together a hundred and twenty-three-page grant application and get to the FAA. So I just want to give a big shout out to my assistant airport director, Kim Boyce. She's a big part of us being able to hit that deadline. And actually, we got it done two days in advance. So we submitted that two days prior to it. So now we're in a holding period. We're waiting for this really large check from the FAA. Uh once we actually get that grant offer, I'm gonna come back to the city commission to secure approval to uh accept the grant offer and award the construction contract. And if you grant that, then we'll move forward with construction starting in March with completion in November. Project funding, yeah, the big question, right? How much does it cost to build 7,400 feet by 50 feet wide of a taxiway? It's a lot of money. It's 15.6 million dollars is what it all comes down to. Uh but one of the things that I'll point out, again, like I mentioned, uh, since we were able to get that grant application submitted on before June 1st, we're able to take advantage of a better split. Traditionally, our grants that we receive are 90 to 10 split, 90% covered by the federal government, 10% by uh local municipality US. Uh but luckily with FAA reauthorization, we were able to take advantage of a 95-5 split. And so we're looking to receive roughly 15 million from the FAA, and the city's cost is a little over 700. I'll pause there for any questions that you might have before I transition on. I don't know if I'll answer them, and my intent was to just hear all your questions, and then when I bring it back, I'll be really getting it. No, I'm just kidding. I'll answer all the questions. As I recall in some of our previous conversations, the airport takes in some fees out there ticket sales that can't be used for anything else other than eligible projects. This type of project.

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