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Lawrence City Council defeats $6,137,126 free-cash transfer after warnings of higher property taxes

5083553 · June 26, 2025
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Summary

The Lawrence City Council voted down a motion to transfer $6,137,126 from free cash to multiple accounts, including the fiscal stability account. Supporters warned failing to approve the transfer would raise residential property tax bills by at least $50; efforts to reconsider and to remove the item from the table later failed.

The Lawrence City Council rejected a motion to transfer $6,137,126 from the city’s free cash to multiple accounts, including the fiscal stability account, after a roll-call vote that failed.

Supporters of the transfer warned that not approving the measure would increase residential property tax bills. "Which if we don't pass it tonight, will, will increase property tax bills by at least $50 for residences," Councilor Perez said when moving the item for consideration.

The motion (document 2‑43‑25) was offered as a transfer from free cash to several accounts intended to cover items councilors described during debate as municipal obligations and reserves. Proponents listed intended uses in discussion, including contributions to the OPEB (other post‑employment benefits) trust fund, workers’ compensation claims, the injured‑on‑duty reserve, snow‑and‑ice overexpenditures, the fiscal stability fund, roughly $1 million for debt service and a reserve for litigation and judgments.

Councilors conducted a roll call on the underlying motion; the clerk announced the tally as three votes in favor and six against, and the motion failed. Council members then discussed procedural options, including a request to allow a member to change a prior vote. The council voted to reconsider the prior action so one member could change a vote, but a subsequent motion to take the item off the table failed, 4–5.

Council President Rodriguez presided over the session and called the procedural votes. There were multiple roll calls and a period of discussion in which supporters urged colleagues to approve the transfer to avoid the projected tax impact and to signal fiscal action to state officials.

No statutory citations or grant conditions were invoked during the council’s debate on this item in the transcript. The motion failed; no appropriation or transfer was enacted at this meeting.

The council moved on to other business after the failed motions.