Mayor Whitfield presented the City of Lawrence's proposed 2026 budget to the Lawrence City Council, saying the administration has identified more than $7.1 million in fiscal pressures driven by state law changes, rising retirement costs and the end of federal relief funds.

"Tonight, I am honored to present the 2026 proposed budget for the City Of Lawrence," Whitfield said, and described measures intended to preserve public safety, maintain infrastructure and sustain an operating reserve.

The mayor told councilors that temporary federal ARPA (American Rescue Plan Act) dollars accounted for nearly $3,600,000 in the 2025 spending plan and that those funds must be reintegrated into the city's baseline finances for 2026. He said changes from state legislation known as SB 1 and rising property tax "circuit breaker" impacts will reduce local revenue, and that the city projects circuit-breaker losses for Lawrence will be about $2,400,000 higher in 2026 than in 2023, a roughly 130% increase in lost revenue.

Whitfield also cited action by the Indiana Public Retirement System requiring an approximately 3% increase in retirement contributions for public safety personnel, which he said would add about $400,000 to the city's costs. Taken together, he said, those changes and other pressures amount to "over $7,100,000." The mayor emphasized the administrationand common councilwere aware ARPA funds were temporary and that the budget proposal aims to address the fiscal gap while protecting essential services.

The proposed 2026 budget, Whitfield said, prioritizes police, fire and emergency services and continues a disciplined reserve policy. "This 2026 budget is responsible and forward looking. It preserves essential services, strengthens public safety, supports our current employees, and invests in infrastructure and economic growth," Whitfield said.

Whitfield noted the administration finished 2024 under budget, retaining more than $2,000,000 in unspent funds, and thanked the common council for passing a wheel tax and a motor vehicle excise surtax this year, measures he said will take effect in 2026 and allow Lawrence to qualify for Indiana's Community Crossings matching grant program.

He invited councilors and staff to participate in upcoming budget workshops and described an immediate review of vacant positions that will include the mayor, the city controller, the mayor's chief of staff and a member of the common council. "We invite you to join our staff and budget workshops meetings over the next few weeks in getting us across that finish line," he said.

The presentation included three staff members the mayor introduced: City Controller Terry Faulker, managing director Tim Berry of CRO, and senior consultant Cole Ferguson; those staff were introduced but did not make substantive remarks in the recorded transcript.

The administration framed the proposal as a response to external pressures rather than a change in local spending priorities, and urged a steady, transparent process. Whitfield said the city has sought efficiencies and is committed to maintaining an operating reserve to stabilize services as revenues shift.

The council did not take formal votes or adopt the budget during the mayor's presentation; Whitfield's remarks closed the agenda portion recorded in the transcript. He closed by thanking the council and the community for their time and attention.