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Yahoo
06-05-2025
- Business
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City of Cheyenne begins discussions of new $74.4M annual budget
CHEYENNE — Anticipated general fund revenues in the next city budget are up from the current fiscal year, but Cheyenne Mayor Patrick Collins said it's important to proceed with a fiscally conservative budget after the state Legislature passed more laws lowering property taxes for most Wyoming homeowners. The projected general fund revenues for fiscal year 2026, which begins July 1, 2025, are $74,417,876, up $2,770,229 from FY 2025, or 3.8%. 'Projecting revenues this year was difficult,' Collins told City Council members during a work session Friday. 'We took a very conservative approach in our projections due to the uncertainty stemming from federal tariffs, inflation and the looming recession.' City Treasurer Robin Lockman said Cheyenne's economy shows promising momentum, but it is important to remain cautious about the potential for an economic downturn. She said the bond market's 10-year yield curve, an historically accurate recession indicator, was inverted from July 2022 to September 2024, the longest period on record. She said a recession typically begins around six months after the yield curve returns to normal. According to Lockman, the unemployment rate in Laramie County has risen from 3.7% to 4.4% over the past year, adding that stagnating unemployment growth underscored the need for caution. In addition, the property tax reductions passed by the Wyoming Legislature, largely in Senate File 69, earlier this year reduced potential city revenues by an estimated $1,775,000, something Collins called an 'opportunity loss.' SF 69 imposed a blanket property tax cut to residential properties for the first $1 million of a home value. This legislation alone reduced projected revenues by $1.5 million. A separate long-term homeowner exemption will also decrease assessed valuation for property tax purposes by 50% for qualified individuals. The city projects this will result in an additional $275,000 loss in property tax revenues. Collins said he would have liked to see those funds go toward hiring more staff for the city's police and fire departments as the city continues to expand. In the past four years, Cheyenne's land area has grown by 4,637 acres, or 18.24%, in new business parks and neighborhoods, equivalent to 7.25-square-miles. 'Our plans to add more police and fire personnel to keep up with growth must now be postponed. We've made steady progress over the past four budget years in increasing our public safety efforts. And this pause will make our future efforts more difficult,' he said. However, despite the loss in potential property tax revenue, the projected amount for FY 26 is still slightly higher than FY 25 by $32,433. This is largely due to rising property values, with a projected 3% increase, and the city's annexation of North Range Business Park in December, which added approximately $1 million in new business property taxes, since SF 69 only applied to residential properties. Collins said further projected revenue growth is catalyzed by data center development, which is now the city's second-largest revenue source. According to the proposed budget, franchise fees on natural gas and electricity have grown by $2,652,000, or 48%, in the past year. 'Data centers use an enormous amount of electricity, and that use is reflected in the increases,' Collins said. 'And the great news is we have more campuses and data centers planned for the future.' Congruent to this is expected growth in revenue from building permits. City officials are projecting an increase of $710,000, or 31%, in building permit revenue in the next fiscal year. The mayor said this is driven by more data center construction and several multi-family housing projects planned. Lockman highlighted one additional revenue source, the city's investment income. She said the higher interest rates, paired with a strategic portfolio, have nearly quadrupled investment returns from $683,000 in FY 23 to a projected $2.2 million in the current fiscal year on general fund investments. She estimated it at $1,380,000 in the coming year, an increase of $530,841 over FY 25. However, some other revenue sources are weaker than the previous year. Collins said sales tax collections have been under pressure since January 2024, largely due to less oil and gas activity. The proposed budget suggests sales tax could by down by $904,800, or 3.65%, in the coming fiscal year. Another anticipated decrease is in lottery proceeds, which have decreased by $208,895 since 2023. It is projected to decrease $100,000 this year to $300,000, down from over $600,000 in 2023. The city's top three projected revenue sources for FY 26 are sales taxes at 34%, franchise fees at 11.8% and property taxes at 11.6%. The top 10 projected revenue sources are about 85.7% of the general fund budget, or $65.59 million, and the rest amounts to around $9.8 million. Employee wages and benefits are once again the city's top expense, at 71.8%, followed by capital projects at 3.7%, and fleet, fuel and labor at 3.4%. City staff have been working on assembling this proposed budget since December. In the coming weeks, members of the City Council will meet with department heads to hear the details of the requests in their budget proposals and ask any questions. On Friday, department heads from the mayor's office, Youth Alternatives and human resources presented their budgets. Council members also discussed miscellaneous budget items. The budget will come before the governing body for first reading on May 12 and will undergo workshopping over the next month to address any issues. It is scheduled to come before the council for third and final reading on June 10.
Yahoo
21-03-2025
- Business
- Yahoo
'We should all be mindful': LCSD1 considers fiscal impacts of legislative session
CHEYENNE – Laramie County School District 1 officials are keeping a close watch on revenue streams after significant property tax relief and expansion of a school voucher program were signed into law earlier this month. Property taxes directly fund local school districts, with a portion of these taxes flowing into the state's School Foundation Program account. The state pulls money from this account to fund inflationary costs of public school funding through the K-12 public school block grant. With four major property tax relief programs passed last year, and a historical property tax cut signed into law earlier this month, revenue streams into the SFP are expected to take a direct hit. Gov. Mark Gordon recently signed Senate File 69, which provides a 25% property tax exemption on the first $1 million of a single-family home's fair market value. The bill does not have an end date, nor does it include any backfill from the state. Laramie County School District 1 Finance Director Jed Cicarelli said SF 69 will hurt the school district's ability to collect local taxes for funding operations. Decreased local revenue means a heavier reliance on the state for school funding, he said. 'As the local tax collections decrease, the pressure on (the SFP) will increase, because the state will have to make up those entitlement payments,' Cicarelli told the Wyoming Tribune Eagle. 'But it also means there's less revenue coming into that account. … So you're kind of hitting it on both sides of the equation.' House Bill 199, "Steamboat Legacy Scholarship Act," is another indirect factor to the equation. HB 199 expands eligibility for Wyoming's Education Savings Account (ESA) program by removing the income-based requirement for grades K-12 and increasing the per-child, per-year amount from $6,000 to $7,000. This program will cost the state an estimated $44.3 million per year out of the SFP starting in 2026, according to the Legislative Service Office. 'Both pieces of legislation have kind of the same effect on … that increased demand on the School Foundation Account,' Cicarelli said. 'We should all be mindful of how that does impact our local governments.' On a positive note, however, Cicarelli said Wyoming schools still have a state entitlement that ensures adequate funding. And a recent decision from a state district court judge in Laramie County upped the ante on that entitlement, after he found Wyoming has unconstitutionally underfunded its public schools. The decision was released toward the end of the legislative session, and Wyoming lawmakers wasted no time in restoring the full $66.3 million external cost adjustment through a school recalibration House bill. Declining student enrollment Wyoming's largest school district has lost around 1,000 students since the pandemic, and Cicarelli said lower student enrollment reduces state funding to the school district. LCSD1 was originally estimated to receive an extra $9.3 million in funding from the state this year. However, Cicarelli said the decline in student enrollment is not reflected in the $9.3 million cost adjustment, and district enrollment numbers fell by another 129 students last fall. He estimated the lower enrollment would cost the district $3.3 million in state funds. Revenue projections for LCSD1 are also down by $1.4 million, or half a percentage point, Cicarelli told school board members Monday night. He later told the WTE this decline is not a significant concern, and better estimations will be available in the final quarter of the year. The passage of Senate File 73 also dips into school district funding, since it now requires the district's central office to allocate a portion of its revenue to district-approved and state-approved charter schools. 'That money will come out of our funding and go to those (three charter) schools,' Cicarelli said. However, it has not yet been determined what these fiscal impacts will be. Multiple other bills passed by the Legislature were also discussed Monday night, with many of them expected to have some fiscal impact to the school district. Among those was HB 172, a bill that repeals a majority of gun-free zones throughout the state, including in public schools. Cicarelli said the bill could affect costs for insurance, staff training and lock boxes, but the significance of those costs has yet to be determined.
Yahoo
06-03-2025
- Business
- Yahoo
Gordon signs 25% homeowner property tax cut bill, vetoes anti-DEI bill
CHEYENNE — Gov. Mark Gordon has signed a measure to provide a statewide, 25% property tax cut for Wyoming homeowners, but vetoed a bill to ban DEI programming at Wyoming's institutions of higher education. Gordon signed Senate File 69, 'Homeowner property tax exemption,' on Tuesday. His office said in a news release that the legislation will 'provide permanent property tax relief to Wyoming homeowners.' The same release announced that Gordon vetoed Senate File 103, 'Terminating and defunding diversity, equity and inclusion,' a bill sponsored by Sen. Cheri Steinmetz, R-Torrington. That bill prohibited DEI efforts and mandates by state agencies and public educational institutions. Property tax bill SF 69 went through many iterations over the course of the 68th Wyoming Legislature's general session, which is scheduled to end Thursday. More than once, lawmakers amended the bill to offer a 50% property tax cut, and even tried to include a calculation of relief based on a five-year, county-by-county average increase. SF 69 provides a 25% property tax exemption on the first $1 million of a single-family home's fair market value and does not have a sunset date. The exemption takes effect immediately, with an owner-occupied requirement beginning in the second year. 'I have always supported tax accountability, and this bill provides tax relief without transferring the burden to our core energy industry,' Gordon said in the release. 'This act, coupled with the bills I signed last year, responds to the call for property tax relief. Now the practical impacts of this legislation will need to be navigated by our cities, counties, special districts and citizens.' In a second joint conference committee meeting last Thursday, Rep. Scott Heiner, R-Green River, asked that the Senate agree to provide backfill for local governments in the bill, as was the House's preference. Senate Vice President Tim Salazar, R-Riverton, said the Senate could not agree to a deal on SF 69 that included backfill with a cut of only 25%. Even as late as Tuesday afternoon, representatives in the House tried to add backfill amendments to other property tax measures. Several attempts were made to Senate File 153, 'Residential real property-taxable value,' which would create a separate property tax assessment rates for residential real property. 'I think we should continue to stand for our position. It shouldn't be about what the other body is going to do, or what the guy downstairs is going to do,' Rep. J.T. Larson, R-Rock Springs, said on the House floor. 'We have to do what's right for our constituents.' All amendments to add backfill to SF 153 failed. Terminating DEI bill Falling back on an argument about local control, Gordon said in his veto letter on SF 103 that Wyoming has 'long upheld principles of responsible governance, educational excellence, and local control.' Gordon said that while he appreciated the Legislature's 'efforts to address concerns related to diversity, equity, and inclusion (DEI) policies within public institutions,' he had significant reservations with the bill in its current form. The bill, according to Gordon, 'introduces ill-defined and overly broad restrictions, creates significant legal ambiguities, and risks unintended consequences that could negatively impact Wyoming's higher education institutions and workforce development.' The bill also included a late-stage amendment that was added on after the Legislature failed to agree upon a supplemental budget bill. Steinmetz initially recommended that the Senate not concur with the House amendment to SF 103 to include $550,000 to fund medical education for Wyoming students under an agreement with the University of Utah, but the Senate receded from nonconcurrence and sent the bill to the governor with the amendment. Gordon said while he fully supports 'training the future physicians Wyoming needs,' the funding 'may be a more proper discussion for the Legislature to take up this fall in anticipation of the upcoming Budget Session.' Other bills, he said, also address the same concerns regarding DEI activities in public institutions, including House Enrolled Act 67, which defines prohibited practices, ensuring consistency and reducing the risk of legal confusion.
Yahoo
26-02-2025
- Business
- Yahoo
No deal yet on Wyoming property tax cut bill
CHEYENNE – With deadlines looming, a joint conference committee of three Wyoming senators and three representatives failed to reach a deal on a sweeping property tax cut measure early Tuesday morning. The deal on the table was to amend Senate File 69, 'Homeowner property tax exemption,' to include a 25% property tax cut for residential structures up to $1 million in value with no backfill from state savings. The proposal also included no sunset date, although the cuts may have to be repealed, depending on the outcome of a 2026 ballot initiative to cut 50% of homeowners' property taxes. The Senate position on the bill had been a 50% tax cut without backfill, to sunset in two years. The House had inserted over $200 million from state savings to make up for lost revenue to cities, towns and counties that depend on property tax revenue for local services, and included a 25% cut in perpetuity without a sunset date. Sens. Troy McKeown, R-Gillette; Tim Salazar, R-Riverton; and Mike Gierau, D-Jackson, all voted for a 25% cut as proposed by the joint conference committee Tuesday morning. All three lawmakers from the House, including Rep. Scott Heiner, R-Green River; Rep. Tony Locke, R-Casper; and Rep. Christopher Knapp, R-Gillette, voted against the proposal. Senate leaders left the meeting frustrated. Wyoming Legislature's 2025 Session Sen. Tim Salazar, R-Riverton, listens during the a committee meeting on Jan. 16. Salazar was one of three members of a joint conference committee that failed to reach a compromise on a property tax cut bill Tuesday morning. 'As of yesterday, we both had decided to have a 7 a.m. JCC meeting, and we came to agree (on) the understanding we had (made) yesterday,' Salazar told reporters after the meeting. 'It was a surprise to me that this occurred.' Salazar said that while the Senate would prefer a 50% cut, 25% would offer a measure of property tax relief as requested by 'the people back home," while not being a deep enough cut to require backfill, in his opinion. 'I've always said that perfection is the enemy of the good. This was a good deal. We supported it. We came here at 7 a.m. to sign our names, and it didn't occur,' Salazar said. Senate President Bo Biteman, R-Ranchester, told reporters that the House and Senate had made a deal Monday night prior to calling the joint conference committee. Sen. Bo Biteman, R-Ranchester (2025) Sen. Bo Biteman, R-Ranchester 'We shook hands. We had a deal,' Biteman said. When asked if the three representatives on the committee may have needed time to take the proposal back to that body, Biteman added that the representatives 'wouldn't have made a deal (Monday) if they didn't have the votes." Gierau also said that it seemed the two chambers had reached an agreement on Monday, but 'then our friends on the other side, for some reason between yesterday and today, decided – they said they wanted to go confer.' Sen. Mike Gierau, D-Jackson (2025) Sen. Mike Gierau, D-Jackson The proposal Tuesday was not a surprise to the House, Gierau said. 'When they have agreed and shook on a deal, I find it interesting that they have to talk to their body,' Gierau said. '(Senate) leadership has been forthright and open. It is not everything I wanted, but it has been totally transparent on our side.' Heiner told the Wyoming Tribune Eagle that SF 69 is an 'important piece of legislation that has wide implications for the citizens of Wyoming." He said he did not feel the House leadership had rejected the proposal by voting against it. Rep. Scott Heiner, R-Green River (2025) Rep. Scott Heiner, R-Green River 'After getting the Senate's proposed amendment this morning, we wanted to go back to our chamber and discuss it with our members and to run the numbers,' Heiner said. 'We asked for a couple days and (will) reconvene for further discussion.' Locke also told the WTE that the intention was not to 'burn anything down,' but to give the House time to deliberate. 'I'm very in favor of property tax relief. It was not an intention to burn anything down. It was just more of a ... we need a little time to discuss exactly the direction we want to take this,' Locke said. When asked if the House knew what deal would be on the table Tuesday morning, Locke said that 'a lot of ideas had been thrown around, and we wanted to make sure we knew the nuance of what was being proposed.' McKeown said that as it stands, any large-scale property tax relief is in representatives' hands. Sticking points in the negotiations leading up to the joint conference committee included the percentage of the cut and backfill. 'I am not going to mince words. This wasn't just our offer. This was what they wanted. It is what they agreed to, until this morning. It is very, very disappointing,' McKeown said. 'I have been pushing this bill for three years, and I thought we were there. This morning was hugely disappointing, and it will be what they want to do with it. We can't make them vote yes.' Salazar said that he was concerned the bill might not meet legislative deadlines at this rate. Gierau said he had hoped the joint conference committee could get back together Tuesday to agree on a deal, but Heiner said negotiations may take another day or two. Friday is the last day to send bills to Gov. Mark Gordon's office in order to allow enough time for a veto override by lawmakers before they adjourn March 6. Locke said to expect ongoing negotiations over the next day or two.
Yahoo
21-02-2025
- Business
- Yahoo
Laramie County could lose $7.6 million from proposed property tax cuts
CHEYENNE — As the Wyoming Legislature continues to push for more residential property tax cuts, municipalities and counties are concerned about what that could mean for them. Last week, Laramie County employees received an email stating the county will face a $7.6 million shortage if Senate File 69 is approved as introduced. The email was in response to concerns that the county would be forced to eliminate 60 county positions if the legislation is signed into law without any revenue backfill from the state. While it is true that the county would have to shave some expenses if property taxes are cut, that does not necessarily mean it would solely be through eliminating positions, according to the email. Laramie County Board of County Commissioners Chairman Gunnar Malm said the conversation would be ongoing as government officials compile their budget in the coming months. He said he hopes to limit any reduction in current staffing. Wyoming law enforcement officials concerned about property tax cuts Local sheriff departments and fire departments across Wyoming are at risk of losing a significant amount of funding this year as the Wyoming Legislature considers further property tax cuts. This week, WTE reporter Ivy Secrest shares her conversation with Laramie County Sheriff Brian Kozak and Laramie County Fire Authority Chief Jason Caughey on the issue.\n\nStick around to hear a recap of local headlines and happenings at the Wyoming Capitol over the past week, as well as a preview of upcoming local events.\n\nNew episodes published every Friday.\n\nProvide feedback or suggestions to news@ 'There will certainly be impacts, but our intention and goal will be to figure out how to still provide all the vital services that not only state statute requires, but that our residents require, and do so within the budget that is presented with whatever reduction comes from property taxes,' Malm told the WTE. SF 69 would create a statewide residential property tax cut of 50% on single-family primary residences valued at up to $1 million. Proponents say it is intended to ease the financial tax burden on Wyoming property owners, who have asked for such relief. The bill would also give exemptions for business property owners, Malm said. He said this could result in a couple million more in lost county revenue due to the economic drivers in Laramie County, including oil and gas and data centers. Property tax revenue in Wyoming goes to counties, municipalities and special districts to fund services like law enforcement, hospitals and infrastructure, as well as K-12 education. Malm said the impact of this bill may be more heavily realized in smaller communities and counties. 'What this means for the town of Albin, town of Pine Bluffs, Burns, our fire districts, those things, they rely upon property taxes. They're not supplemented from the county budget at all,' Malm said. 'Those are standalone entities that collect tax revenue through mills and property taxes. They don't have the revenue base to draw from to weather what could potentially come, and so that is my fear is what this means for small-town Wyoming.' He added that reduced fire suppression services could also mean residents face more difficulties and expenses when seeking insurance coverage for their property. The House amended the bill to apply tax relief on a county-by-county basis to ease concerns from those who run services funded by property taxes. On Wednesday, however, the House voted to remove that amendment on third reading, returning it to a statewide, 50% assessment reduction for residential structures up to $1 million in value. It does now contain $200 million worth of backfill, however. 'I would just ask us to take a more cautious and holistic approach looking at it than a one-size-fits-all property tax cut across the board,' Malm said. However, Malm did acknowledge the need to ease the financial burden on some Wyoming residents paying property taxes. 'I think that there is a certain need for property tax relief. I think residents see that and have requested that. I think that the issue comes when we do a wholesale property tax cut. Does every resident need one? I don't know,' he said. 'I personally don't feel that I need a property tax cut. I feel that I get a lot of services for the property taxes I pay.' He added that he would rather see the previous property tax reduction programs approved by the Legislature play out before moving forward with a bill like SF 69. Molly Bennett is the head of Laramie County Public Works. The services in her department are not specifically funded by property taxes, but she worries how it may still impact Public Works. 'Just given the impact that this could have ... I think everybody, at some level, is worried, right? It's hard not to be just because of what could happen,' Bennett said. 'At the same time, we don't have any facts yet on what that's going to look like, so it's really difficult to jump the gun and make some assumptions there without really knowing how it's going to all play out.' Ultimately, if property taxes are cut, the county commissioners will decide which services or positions will also be cut when they are assembling their annual budget for the next fiscal year. Other local service providers, like the Laramie County Sheriff's Office and the Laramie County Fire Authority, have expressed opposition to the legislation due to fears of potentially cutting staff and services, as well. House Bill 169 proposes identical cuts, but the House measure also provides a $125 million 'backfill' to reimburse local governments for revenue lost to property tax cuts. Malm said a backfill would be helpful, but it would create issues of using state dollars to fund local governments and services. 'When we start using state funds to backfill and supplant income that local governments rely on from the income sources we're allowed, it isn't a sustainable solution,' he said. 'The state has its own host of responsibilities and costs, and so to think that we could have an ongoing kind of backfill from the state of Wyoming is not something I'm willing to bet my life on, or even hedge on, because I don't think it's a realistic long-term solution.' HB 169 was introduced to the Senate on Thursday and referred to the Senate Appropriations Committee. No committee hearings on the bill have been scheduled. Senators refused to concur with House changes to SF 69 on Thursday, so the bill will next go to a joint conference committee to try to work out differences between the two chambers.
