City manager proposes $415M 2027 budget, cites need for mill increase to staff new fire station

Acting City Manager Casey presented the city manager's proposed operating and capital improvement budget for 2027, telling the commission it "is the result of months of collaboration" and proposing investments intended to preserve service levels while rebuilding fund balances. Budget staff said the all‑funds proposal is about $415,000,000 and that the estimated mill levy to support it would be 36.06, "an estimated increase of 2.348 over the 2026 final tax rate," a staff presenter stated.

Budget documents and staff presentations highlighted three cost drivers: a $7 million increase in the city's employer contribution to health insurance, recommended pay adjustments (step increases plus a general wage adjustment), and a nearly $3 million enhancement to support expansion of Lawrence Douglas County Fire Medical (LDC FM). Budget staff also said the proposal includes a 0.1% increase to the transit sales tax to sustain fare‑free service through 2029 if voters approve a ballot measure. "This budget proposes some bold investments to support a vibrant, equitable, and resilient Lawrence," Casey said in introducing the plan.

Commissioners asked for more detail on outcome metrics and service levels, and staff committed to posting commission questions and answers on the budget website. The commission scheduled follow‑up budget workshops and will set the required revenue‑neutral hearing next week; staff noted that the published maximum tax rate for that notice will be 36.060 but that the final adopted rate can be reduced from that amount. The city will hold public hearings and adopt the budget in September.