Casper city manager presents $183 million FY26 budget; stresses reserves, flags property-tax shortfall

City Manager Carter told the Casper City Council on the city’s budget work session that the proposed fiscal year 2026 budget asks the council to approve $183,000,000 in spending and that staff designed the proposal to stay within the city’s means.

Carter said the plan is “balanced, we’re living within our means,” and he emphasized the role of long-standing reserve policies in protecting operations. The budget document shows roughly $214,000,000 in cash on hand, of which about $96,000,000 is tightly obligated by policy or other restrictions; the general fund’s 120‑day operating reserve is roughly $17,000,000.

The nut graf: the proposal aims to preserve operational stability while setting aside money for capital. Carter and staff told council members the draft is intended to give the council a review period before a final vote at the council’s second June business meeting. That review period is when councilors, staff and the public can press for changes and clarifications.

Most of the presentation focused on the general fund and the city’s revenue outlook. Staff proposed a sales-tax projection of $24,500,000 for FY26 and told council that sales-tax receipts are volatile; the city expects to close FY25 with about $24,700,000 in sales-tax receipts. Carter said the budget does not rely on one-time revenue to finance ongoing expenses, a core design rule staff followed.

Councilors pressed staff for detail about the sum of cash that is not reserved. Carter explained that roughly $118,000,000 of the city’s cash-on-hand is available to fund future capital agendas but that much of that amount already has designated uses — for example, ongoing capital rollovers, equipment purchases not yet delivered, or funding reserved for landfill work. "That represents the effort that we take to adhere to the next‑cent cash on hand for capital ventures," Carter said.

Carter warned council that property-tax revenue has fallen from a peak the city budgeted earlier and that this decline is a recurring issue. He said the city budgeted roughly $4,300,000 in property-tax revenue for FY26 — down from earlier years — and noted a potential further $1,200,000 hit if a proposed November ballot measure is approved by voters. Staff characterized those property‑tax changes as legitimate reductions in revenue that will require future reconciliation.

The presentation closed with a call for early Council engagement on big policy questions — including potential revenue tools, districting for specific services, and priority‑based budgeting — ahead of capital and rate decisions scheduled for later this year.