Mayor Patrick Collins and City Treasurer Robin Lachman presented the cityof Cheyenneproposed fiscal year 2026 general fund budget of $74,417,876 at a council work session, saying the total represents a 3.8% increase over the adopted FY2025 budget.

"You have before you today our proposed budget for the fiscal year 2026," Mayor Patrick Collins said as he opened the presentation.

The mayor and treasurer said revenue gains driven by data-center expansion and stronger building-permit activity offset weakness in other sources but did not fully make up for state action reducing residential property taxes. "The legislature passed residential property tax reductions that reduced our revenues by an estimated $1,775,000," Collins said, and the council was told that loss represents an "opportunity cost" that will limit the city's ability to add staff.

Why it matters: The budget balances recurring expenses with one-time projects while pausing some planned growth in public safety staffing. City leaders framed the package as conservative amid economic uncertainty, and they flagged the risk that future state or voter actions could further reduce property tax revenues.

Top-line figures and drivers: The treasurer and mayor said key numbers include:

- Total proposed general fund revenues: $74,417,876 (up $2,770,229, or 3.8% from FY2025).
- Estimated revenue loss from the recent residential property tax change (Senate File 69): $1,775,000.
- City area growth: 4,637 acres added over four years; city now about 39 square miles.
- Major revenue gains: franchise fees on gas and electric up about $2,652,000 (roughly 48%), driven by data-center electricity use; building permits projected to grow by $710,000 (31%).
- Revenue weaknesses: sales tax collections projected down $904,800 (3.65%), lottery proceeds down about $100,000, and cable franchise fees down about $104,400.
- The top 10 revenue sources account for roughly 85.7% of the general fund.

Payroll and staffing: The city presented payroll changes and staffing details, including:

- Payroll expenses increased about $1,227,000 over the FY2025 budget, with components the mayor itemized as: $425,000 for market study adjustments, $108,000 for step increases, and $552,000 tied to five new FTEs hired during the last fiscal year.
- The budget eliminated 4 FTEs for a savings of $423,000; the net authorized FTE count in the proposed budget is 451.1, a decrease of 0.3 from last year.
- One new ongoing position recommended: an additional prosecutor in the city prosecutoroffice at an estimated cost of about $140,000.
- Police and fire hiring plans are being slowed. Collins said plans "to add more police and fire personnel to keep up with growth must now be postponed."

One-time investments: The city will allocate about $2,282,000 in one-time resources, including smaller capital and equipment items and several facility upgrades. Notable items listed by the mayor include: $350,000 for a new grapple truck for forestry, $45,000 for Civic Center lighting upgrades (LED conversion), $820,000 to add lights to two baseball fields at Dutcher Complex, $100,000 to retrofit an existing vehicle for wildland response, and money for IT and facilities upgrades.

Budget risks and reserves: Treasurer Robin Lachman emphasized inflationary pressures and uncertainty in revenue forecasting; she noted the city is keeping conservative projections and highlighted reserves and diversified revenue as cushions. Lachman also pointed to increased investment income projections in a higher interest environment as a partial revenue offset.

Process and next steps: The mayor and treasurer said department budgets will be presented in upcoming work sessions and the council asked staff for supplementary breakdowns (for example, a consolidated overtime increase report). No formal vote on the proposed budget occurred at the session.

Ending: Council members questioned staff on specific line items, including overtime calculations, wellness participation for insurance premium discounts, and the composition of the one-time project list. City leaders said they will return with more detailed breakdowns in subsequent meetings.