The Manhattan City Commission on Tuesday will see a budget proposal that falls under the tax lid.

The second budget work session starts at 5:30 p.m. at City Hall.

Under the proposed budget, the property tax rate would increase by 3.46 mills to 52.185 mills.

A mill is $1 in tax for every $1,000 of assessed, taxable property value.

That increase is estimated to bring in additional $2.3 million in revenue, or about $300,000 lower than the state-imposed limit of a $2.6 million increase.

City administrators also said that while they initially expected Riley County’s total property valuation to go up 2%, the actual increase was only 1.1% to $530.2 million. Greg McHenry, Riley County appraiser, said that the average price of an existing house went up 0.4%.

That means that a homeowner paying $557.58 in city taxes for a $100,000 in 2019 would pay $609.79 for a $100,400 house in 2020. This is an increase of $52.21 or 9.36%.

At the first budget session, city administrators gave the commission a look at a hypothetical budget that would have bumped the property tax rate up by 4.35 mills, which would have brought in $3.1 million in new tax revenues.

Bernie Hayen, city finance director, said administrators intentionally presented the commission with a budget that exceeded that limit to demonstrate the challenges it will face in creating the budget as a result of the law.