Laramie staff outline supplemental budget plan: $14M for streets, $5M housing pilot, 3% COLA recommended

Laramie — City finance staff on Wednesday presented the City Council with the administration’s recommended supplemental budget for the second year of the biennium, centering on a mix of one‑time investments and modest ongoing adjustments intended to keep operations sustainable amid volatile state and mineral revenues.

The recommendation would commit $14 million from unallocated reserves to accelerate pavement repairs, pairing that with $6 million already approved in the biennium so the city could invest roughly $20 million in paved street work over the next two to three construction seasons. The city manager also proposed a $5 million housing‑enabling pilot that would use $3 million in investment earnings from water and wastewater utility funds plus $2 million of one‑time general fund sales and use tax collections to support ready‑to‑build infrastructure for attainable housing.

Why it matters: Laramie’s general fund relies heavily on intergovernmental and resource‑linked receipts. Staff emphasized conservative revenue forecasting and warned of near‑term risks including continued state property‑tax reductions and potential changes to Wyoming’s direct distribution of mineral revenues.

Key takeaways

Revenue and risk

Administrative Services Director Jennifer Wade presented a detailed revenue overview and said the general fund remains structurally balanced since adjustments in 2017, but that the council should consider risks tied to several volatile sources.

"When you hear fund balance, think equity," Wade said as she introduced the fund‑balance discussion. She told council that the city is not including one‑time wind‑related sales collections in its ongoing revenue forecast; those receipts are being used for one‑time investments.

Wade listed major revenue components: sales and use taxes (about 44% of the general fund), mineral production‑related receipts (about 14%), user charges (about 10%), and property/auto taxes (about 8%). She noted the city’s direct distribution of federal mineral royalties has been unusually large in recent years and that formula changes can reduce that source quickly; "the direct distribution is... the item that gives me the most concern," she said.

Fiscal proposals and outlays

City Manager recommended actions included:

- Streets: commit $14,000,000 from unallocated reserves to pavement repairs, which combined with $6,000,000 already approved would allow about $20,000,000 in street investment over the next two to three construction seasons. - Housing enabling pilot: $5,000,000 program to prioritize "build‑ready" infrastructure for attainable housing. The recommended funding mix is $2,000,000 one‑time general fund sales/use tax receipts plus $1,000,000 from wastewater investment earnings and $2,000,000 from water investment earnings; the manager described the $3,000,000 from utility funds as coming from investment earnings rather than user fee principal. - Employee compensation: a 3% cost‑of‑living adjustment for classified (non‑fire) staff effective July 1, 2025; fire bargaining unit employees will receive a 5.5% COLA per their contract.

Size and timing

The overall net supplemental recommendation totals about $2,000,000, of which roughly $508,000 is ongoing and about $1.5 million is one‑time or temporary. The manager said about $990,745 of the one‑time money is for capital and capital support transfers, about $404,030 for one‑time personnel costs, and the remainder for operational one‑time spending.

Council questions and clarifications

Council members asked for concrete examples of capital spending funded from reserves (fleet replacement was cited), and about the timing and continuity of the local optional sales/use tax (the locally adopted sixth cent) that has produced large receipts tied to wind‑energy development. Director Wade said the Department of Revenue does not disclose payer‑level data but that the pattern points to multiple wind projects in Albany County; she cautioned council against assuming multi‑year permanence for those receipts.

Wade and the city manager also reviewed property tax forecasting, noting adopted state changes and local exemptions have reduced property tax receipts. Wade said the budget contains a conservative property‑tax forecast of roughly $2.45 million for the coming year (down from a hypothetical pre‑reduction estimate near $3.3 million). Councilors discussed the mechanics and likely uptake of newly expanded senior exemptions and other state changes.

Process and next steps

Wade encouraged council to use the budget book’s supplemental section to review proposed line‑by‑line changes; the administration will bring the supplemental budget for formal consideration at upcoming meetings and council members may propose amendments at a special meeting. Staff said the administration will continue monitoring direct distribution, sales/use tax flows, and legislative changes and return with any required adjustments.

What the administration asked of council

City Manager asked council to: (1) formally commit the $14 million for pavement work; (2) authorize the $5 million housing enabling pilot concept and its funding mix; and (3) approve the recommended 3% COLA for classified staff.

Ending note

Staff described the package as cautious: ongoing operational growth is modest (roughly 1.3% more than the adopted budget for ongoing items), while one‑time dollars are directed to capital and strategic pilots. Council members asked for further detail and copies of presentation materials; Director Wade agreed to circulate slides and the underlying revenue detail ahead of the formal supplemental hearing.