A 3-mill property tax rate increase and the possibility of asking voters to approve a sales tax increase for transit are included in an early glance at the City of Lawrence’s 2027 budget plan. Commissioners will discuss it on Tuesday.
City staff members will ask the commission to weigh in on some key questions to help staff shape the 2027 budget.
One question is whether commissioners support increasing the property tax rate, or mill levy, to help pay for Fire Station 6.
Another is whether to ask city voters to approve an increase in sales taxes to support Lawrence Transit. Without an increase, current route frequency, fare-free buses and the downtown transit station could be in jeopardy, according to the meeting agenda.
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Final approval of the budget will not come until September, but commissioners’ input on Tuesday will help city staff members determine whether they’re on the right track. The community can also weigh in through public comment.
Property taxes
The city and county are planning to construct a new Lawrence-Douglas County Fire Medical station, Station 6, near Sixth Street and Stoneridge Drive.
LDCFM staff members have said for years that the expansion is needed in order to ensure quick response times during emergencies. The department handles fire and medical calls inside and outside of city limits. Northwestern Lawrence is also poised for expansion, with the incoming Costco and nearby developments near Sixth Street and Kansas Highway 10 as well as annexation requests currently under consideration.
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The new station is estimated to cost about $13 million. It’s also estimated to cost the city $4.5 million and the county $2.1 million, $6.6 million total, in annual operating costs going forward.
City staff members on Tuesday will ask commissioners to weigh in on whether they’d support a 3-mill increase to pay for that.
The city simultaneously is planning for employee raises, as well as increasing costs for health insurance. There’s a compensation study underway, according to the agenda, so it’s not clear yet exactly what that will look like.
For perspective on the mill rate increase: In September, commissioners approved an increase of 0.488 mills, raising the mill levy to 33.674 mills for the 2026 budget. The owner of a home with an assessed valuation of $200,000 will owe the city about $774 in property taxes this year. The roughly .5-mill increase added about $11 from the 2025 rates for a $200,000 home; however, most property values also increased about 5%.
If the city were to increase its mill levy to 36.674 mills for 2027, the owner of a $200,000 home would owe the city about $844 in property taxes in 2027 – an increase of about $70. However, valuation increases mean most property owners would see increases beyond the tax rate.
The average sale value of a home in Lawrence over the past two years is about $325,000, according to a housing study the city has in progress. The owner of a home valued at $325,000 would owe the city $1,371 in property taxes at a rate of 36.674 mills in 2027, up about $112 from $1,259 in 2026.
The Douglas County appraiser’s office has started sending out valuation change notices to households, and most residential and commercial properties will see valuation increases of 1% to 8%, according to the county. The city is assuming a 3% assessed valuation growth, according to Tuesday’s meeting agenda.
Although renters don’t typically pay property taxes directly to the government, rent increases reflect rising costs to property owners.
The city also intends to open A Balancing Act, the online program city staff members use to gather community feedback to help shape the budget, from Friday, March 13 through Friday, April 10, according to the agenda.
Transit sales tax question
Lawrence voters have to approve any sales tax increases the city proposes. Most recently, in November 2024, 53.6% of voters said yes to increasing a sales tax to support affordable housing and homelessness services.
Lawrence voters’ November 2026 ballots might ask for another increase, this time to support Lawrence Transit.
Transit currently receives grants and funding from a 0.2% sales tax, and city staff members want to ask voters to increase it to 0.3%.
The sales tax currently costs 4 cents per $20 spent in the city, or 20 cents per $100 spent. If voters were to approve, that would increase to 6 cents per $20, or 30 cents per $100 spent.
Transit’s regular bus routes have been fare-free since January 2023. Fares could return in 2029, according to the agenda.
Starting this month, the city is charging $3 per trip on the Lawrence Transit On Demand service, which runs during hours that regular buses don’t, including on Sundays. (Read more about that at this link.)
Plans for a downtown transit station have been delayed for an environmental review, but the city has been planning for the station for years.
“With the sales tax increase: Transit retains current route frequency and fare free service until 2029 and continues the Downtown Station project,” the presentation in the commission’s meeting agenda states, though it does not elaborate on what would come of the approximately $2.03 million project without the increase.
Staff members are also proposing sponsorships and bus advertisements to help generate revenue, according to the agenda.
If the question makes it to the ballot and voters approve, the sales tax collection would begin in April 2027. If not, the tax could sunset in 2029.
Meeting info
City commissioners will meet at 5:45 p.m. Tuesday, March 10 at City Hall, 6 E. Sixth St.
The commission accepts written public comment emailed to ccagendas@lawrenceks.org until noon the day of meetings. The commission also hears live public comment during meetings, both in person and virtually.
City commission meetings are no longer livestreamed on YouTube. In order to watch the meeting online remotely, attendees must join via Zoom, which also allows participants to provide public comment virtually. (The Zoom link had not been added to Tuesday’s agenda as of Sunday afternoon.) Meeting recordings are uploaded to the city’s YouTube channel the next day.
See the commission’s complete meeting agenda at this link.
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Mackenzie Clark (she/her), reporter/founder of The Lawrence Times, can be reached at mclark@lawrencekstimes.com. Read more of her work for the Times here. Check out her staff bio here.
Lawrence city budget coverage
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