Size of property tax cut debated

City taxpayers may get a last-minute present from city commissioners tonight.

Commissioner David Schauner is expected to lead a charge to lower the city’s property tax rate by an additional mill before commissioners finalize the 2006 budget at their weekly meeting.

“What concerns me is that we’re falling into the mindset that everybody’s money is nobody’s money,” Schauner said. “Just because we had an 8 percent increase in property assessments for ’06, doesn’t mean we have to spend every dime of that money. I think this would send a good message to the community.”

City Manager Mike Wildgen recommended a budget that reduced the mill levy by 0.523 mill. But Schauner said he believed city commissioners could easily reduce the property tax rate by 1.523 mills by dipping into the city’s reserve funds, which would not require the city to cut current services.

City Commissioner Sue Hack equated the strategy to a family deciding to spend more of its savings account. Hack said she planned to support the extra use of reserve funds but did have reservations.

“If we have good years from here on out, we’ll be fine,” Hack said. “We won’t have to worry about it at all. But if we have another 9-11 or another economic downturn, it could be a problem.”

The additional one-mill decrease would require the city to pull about $770,000 out of its primary reserve fund. Wildgen is projecting that would leave about $9.8 million in the general fund reserve fund for 2006, but he also noted that the city has been using more of the reserve fund each year. City projections indicate the fund could be down to $1.4 million by 2008.

Rate increases to be approved

Commissioners at their meeting tonight are expected to take the formal actions needed to raise water, sewer and trash rates.

Among the increases commissioners are expected to approve are:

¢ A 2 percent increase in residential trash rates from $11.71 per month to $11.94 per month;

¢ A variety of increases for water and sewer users. The amount of rate increases vary depending on levels of usage. But a household using 6,000 gallons of water per month would pay $18.63 cents per month for water, up from $17.97 currently. The same household would pay $33.30 for sewer service, up from $30.52 cents.

¢ Green fees for the city-owned Eagle Bend Golf Course would increase from $22 per 18 holes on weekends to $23 and from $19 for 18 holes on weekdays to $20. Rates to rent a cart would remain unchanged at $14 per 18 holes or $9 per nine holes.

Commissioners previously have given tentative approval to all the fee increases as part of their budget deliberations, but they must pass ordinances tonight to allow the fees to go into effect Jan. 1.

Future unknown

Schauner said city commissioners should focus on what’s possible for 2006. He said the commission should not be too concerned with projections for future years because they are heavily dependent on unknown factors, such as how the economy will perform.

“What I know is that the biggest subject in the campaign was affordable housing,” Schauner said. “Making a house affordable to buy is one thing. Making it affordable to continue to live in is another. That’s what we have a chance to affect here. If we continue to raise the amount people have to pay in taxes, Lawrence will become less affordable to more people.”

Schauner’s proposal may have the necessary support it needs to win approval. In addition to Schauner and Hack, City Commissioner Mike Rundle has previously expressed support for the mill levy reduction.

Parks and Rec budget

Tonight’s meeting also is expected to include an effort by Rundle to make last-minute changes to the Parks and Recreation portion of the 2006 budget.

Rundle has said he wants to put on hold six capital improvement projects for the Parks and Recreation Department that currently are in Wildgen’s recommended budget. Rundle wants to delay the projects because all are funded by the countywide 1 cent sales tax. He has said there needs to be a new community discussion about how to use dollars generated by that tax. Rundle was out of town Monday and unavailable for comment.

Rundle’s plan didn’t win favor with either Schauner or Hack. Schauner said he’s open to discussing the sales tax, but said he would rather include the six parks projects in the budget “with an asterisk” and reserve the right to remove them later.

Hack said the park projects needed to be completed.

“I’m not at all comfortable putting those projects on hold,” Hack said. “I think parks are way up at the top of our list when it comes to quality of life factors that we have to offer.”

The six projects up for debate are:

¢ A $300,000 program to purchase future park land and open space;

¢ A $250,000 renovation of Clinton Park;

¢ $300,000 to add trails as part of a rails-to-trails project along the former Burlington Northern Santa Fe Railroad line in East Lawrence.

¢ $242,000 to begin work on creating Green Meadows Neighborhood Park;

¢ $250,000 to begin work on a new Peterson Road Park near the Hallmark Cards plant;

¢ $500,000 to begin work on a greenbelt park east of Langston Hughes School.

Webmaster position

In one other piece of budget news, commissioners will discuss whether to add a Webmaster position to the city payroll. The approximately $50,000 position is not currently in Wildgen’s recommended budget, but Hack is lobbying for its inclusion. She said city staff members have done all they can do to add government information to the city’s Website.

Commissioners will meet at 6:35 p.m. tonight at City Hall, Sixth and Massachusetts streets.