The primary focus of the meeting was the fiscal year 2026 property tax classification. Chief Assessor Alexi Vega, alongside assessors Maria Howerin and Amy Valdez, presented an overview of Lawrence’s property tax landscape. The city proposed adopting a tax factor that shifts the tax burden towards commercial, industrial, and personal properties, without raising additional taxes. The maximum shift permissible, at 1.75, would substantially alter the distribution, increasing the share of commercial, industrial, and personal properties from about 19% to roughly 32%. This proposal highlights the council’s ongoing efforts to manage tax equity, weighing the needs of residential homeowners against commercial interests.

Lawrence has seen a notable increase in property valuations, rising to $8.9 billion, a 7% increase from the previous year’s $8.4 billion. The valuation breakdown showed residential properties increasing by 7.1%, commercial by 4.6%, industrial by 4.1%, and personal property, notably due to investments from utility companies like Comcast and Columbia Gas, by 12.7%. The average valuation for a single-family home hit $479,200, up 6.5% from the previous year. The presentation underscored that the city’s conservative approach to taxation has been beneficial for residents, maintaining a significant excess levy capacity of $13.7 million.

Discussing tax rates, Vega highlighted historical data indicating that despite rising property values, the council’s split rate has eased the tax burden on residential properties. Adopting the maximum tax factor of 1.75 would lead to lower residential tax rates while increasing those for commercial and industrial properties. The projected tax bills suggested a $151 increase for single-family homes, while commercial properties would see larger hikes.

The discussion also addressed disparities in tax assessments, particularly the significant difference between two-family and three-family properties, with the former paying an average of $1,600 more. This discrepancy was highlighted as notable, given the high market valuations of three-family homes in Lawrence. The council reviewed comparative analyses of tax rates across municipalities, with Lawrence maintaining one of the lowest average tax bills at $3,661, below the state average of $7,730.

A significant portion of the meeting was devoted to the timeline for the public hearing, scheduled for November 18th, and the importance of this hearing in setting the final tax classification. The assessors emphasized their readiness to address queries regarding property values and exemptions for seniors and veterans.

Councilor Rodriguez raised questions about the historical tax factors, noting that they have been set at 1.7 or 1.75 for most of the past decade. The committee also clarified the total amount of taxation versus initial expectations, noting an increase from $88,382,893 to $92,119,316, a 4.2% rise, partly driven by new growth and proposition 2.5.

The meeting also touched upon the overlay account, an allowance for exemptions and overvaluation appeals, which Rodriguez felt lacked clarity during budget discussions. The abatement process was another key topic, with emphasis on its significance for taxpayers and the review process for each appeal.