photo by: City of Lawrence screenshot

Vice Mayor Lisa Larsen makes remarks on the 2023 budget as part of the commission's meeting Sept. 6, 2022.

City leaders have approved a budget for next year that includes a flat property tax rate, utility rate increases, and increases in parks and recreation fees.

As part of its meeting Tuesday, the Lawrence City Commission voted 5-0 to approve the adoption of the city’s 2023 budget resolution. The budget for 2023 totals $439.68 million in spending across all funds, keeps the city’s property tax rate flat at 33.29 mills, increases utility rates, and calls for $1.2 million in new parks and recreation fees, including the possibility of entrance fees at recreation centers.

Vice Mayor Lisa Larsen made remarks ahead of the vote late Tuesday evening (after the Journal-World’s press time), highlighting several things she said the budget accomplished, but also emphasizing that the city needed to prepare to make cuts in future budgets to lower the city’s tax rate. Her highlights included making significant infrastructure investments, continuing to invest in the city’s new Housing Initiatives Division, and providing $5 million for employee raises. Larsen said she believed the infrastructure investments would save the city millions in the future and take pressure off rising utility rates.

“This is the largest amount of money invested, that I’ve seen since being on the commission, into our infrastructure,” Larsen said. “It’s $111 million for 2023, and if you think about it, that represents over a quarter of our budget, which I think is extremely significant.”

The budget includes $110.88 million in capital projects as part of the Capital Improvement Plan for 2023. That level of spending on capital projects is among the highest in years. For instance, three years ago, in 2020, the city spent $62.65 million on its CIP. The 2023 CIP includes several projects that will cost tens of millions of dollars, including improvements at the Kansas River Wastewater Treatment Plant, the first phase of the Field Operations Campus, the water main replacement/relocation Program, and improvements to the Southwest Lawrence sewer system that will support additional growth.

Residents will also see their utility bills go up again next year. The city’s three utility funds are enterprise funds, meaning the rates charged to residents are set to cover the personnel, maintenance and other costs of operating the utility service.

Water and sewer rates are currently proposed to increase by 8.75% in 2023, and city staff are expected to bring forward rate increases for storm water and solid waste rates when rates are officially considered for adoption in the fall, according to Finance Director Jeremy Willmoth. Accounting for the 8.75% increase for water and sewer rates — as well as the yet-to-be updated increase in storm water and solid waste rates — the city estimates the utility bill of a typical resident using 4,000 gallons of water will increase from about $115 per month to about to about $122 per month, or about $85 annually. The current estimates for storm water and solid waste are from 2022, and could change when updated rate proposals are brought forward.

The city created the Housing Initiatives Division as part of the 2022 budget, and staff in the division work to address issues related to affordable housing and homelessness. The budget also includes about $5 million for employee raises, which is in addition to $5 million allocated to raises in 2022, concluding a multiyear plan to bring city wages to market-competitive rates.

Though the budget does not increase the property tax rate, many residents will pay more in taxes to the city last year because of increases in home values. In the last year, residential property values in Lawrence have increased by 15.6%, according to the Douglas County Appraiser’s Office. That means even with a flat tax rate, homeowners will still pay significantly more in taxes. For example, if the owner of a house valued at $250,000 sees a 15.6% increase in value, to $289,000, the amount owed to the city would increase by $149, from $957 to $1,106, just due to the increase in value.

Larsen said she wanted to see more of an effort to make cuts in the budget in 2024. She highlighted the city’s investment in a new financial system, which she said should help the city identify efficiencies. The city manager’s recommended budget called for relatively narrow budget cuts, including the closure of the Prairie Park Nature Center building and a funding cut for the Lawrence Humane Society, both of which were ultimately restored. Larsen said the city needed to find a way to lower the city’s mill levy rate in future budgets, and she’d like to see broader cuts.

“So I task staff with continuing to find efficiencies and possible program cuts that aren’t as limited as what was proposed this year, and that reach across departments,” Larsen said. “I don’t believe we’ve done that to the fullest extent possible. I expect to see more options next year.”

Commissioner Bart Littlejohn also made some brief remarks, calling the budget an arduous process and expressing gratitude for Lawrence residents who were involved.

In other business, the commission:

• Voted 4-0 to approve a special use permit for Evergy to develop an electrical substation on approximately 9.98 acres in the southeast corner of the intersection of Kasold Drive and Bob Billings Parkway. Commissioner Brad Finkeldei, who is an attorney, recused himself from the vote because the law firm he works for has involvement with Evergy.