City sticks with mill levy increase

Commissioner Mike Rundle’s attempt to head off a city property tax increase next year ended almost as soon as it began.

Rundle’s fellow city commissioners said Wednesday the proposed 0.8-mill increase to 25.57 mills in 2003 represented frugal budgeting by local government. A mill is $1 of tax for every $1,000 of a property’s assessed valuation.

“I think the public needs to understand it costs a lot of money to run a city this size,” Commissioner Jim Henry said.

Rundle e-mailed his colleagues before Wednesday’s budget study session, asking them to consider eliminating the proposed increase. He said the money could be gained by reducing this year’s expenses and using the leftover cash in reserve funds for 2003. Rundle also suggested the city could raise its sales tax projections for 2003 by $100,000. The city currently isn’t projecting an increase in sales tax revenues, although county officials are planning for a small rise.

County Administrator Craig Weinaug “was more optimistic than we were,” City Manager Mike Wildgen said.

Rundle said the combination of increased sales taxes and reserve funds would be enough to produce the roughly $500,000 that the 0.8-mill increase represents.

Other commissioners said a weak economy made it unwise to rely on those resources.

“I’m not willing to gamble on either the sales tax or reserve fund,” Mayor Sue Hack said.

“This is probably the year to be as conservative as we can be with those projections,” Commissioner David Dunfield said.

“Most of the money we’re spending is for safety and welfare in the community,” Commissioner Marty Kennedy said. “At this point, I don’t see any way to get that 0.8 mills out of there.”

“Majority rules,” Rundle said, acquiescing.

Single-family homes are assessed at 11.5 percent of their appraised value; the median value of a home in Lawrence is $127,000. The owner of such a home would thus see a rise in the city portion of their tax bill grow from $361.77 to $373.45.

The public will get a chance to comment on the proposed $107 million budget during the city commission’s meeting at 6:45 p.m. Aug. 6 at City Hall, Sixth and Massachusetts streets.

The commission is expected to approve the budget at that meeting.