Casper city manager outlines $1.8 million revenue shortfall from state property-tax changes; staff propose cuts, utility billing changes and program adjustments

Casper city officials told the City Council they must close an estimated budget gap created by recent state-level property tax changes and other valuation shifts, and they outlined a mix of operational savings, utility/enterprise billing adjustments and program changes to reconcile the general fund.

Why it matters: Council and staff said the changes enacted at the state legislature will lower municipal property-tax receipts and reduce the city’s operational revenue by about $1.8 million, forcing near-term cost containment while staff develops longer-term sustainability approaches if further state reductions occur.

City Manager Carter said about 72–75% of general-fund revenue is determined outside council control and described an operational shortfall the city needs to fill. “We’re trying to reconcile with regard to operational revenue that is no longer available to us,” Carter said.

Jill, the city finance staff member who prepared the calculations for the council, said the revenue impacts came from three main legislative changes and valuation shifts. She told the council the long-term-homeowner exemption will reduce property-tax receipts by about $341,000; a 25% reduction available through another legislative change will reduce receipts by about $1.2 million; and valuation-cap related adjustments account for about $64,000. Jill also said a decline in mineral valuations reduced revenue by about $245,000. Staff characterized those figures as based on assessor data and subject to final valuation adjustments.

Carter and department heads proposed a set of containment measures and revenue adjustments intended to avoid layoffs and preserve core public-safety and essential services. Proposed steps included:

- Not filling some vacant positions and delaying noncritical hires; Carter said the administration was not recommending layoffs or cuts to employee benefits. - Reducing irrigation and fertilizing in parks and special areas, trimming some snow-removal coverage for trails and park sidewalks, and naturalizing selected park land to reduce operating costs. - Charging utilities for services currently provided by general-fund crews (for example, street trench repairs and engineering services), which staff estimated could yield roughly $150,000 and $179,000 respectively to the general fund if billed for those services. - Adopting a wholesale outdoor-water rate for parks (estimated benefit about $44,000) and pursuing digital-billing incentives that could shrink paper-billing costs (staff estimated $120,000–$150,000 potential savings if widely adopted).

Carter said gambling and interest income increases help offset some losses, but are not sufficient alone; he described a remaining reconciliation gap of roughly $240,000 after the measures already identified. “With these kinds of activities… we believe we will make up a lot of the difference,” Carter said, while noting further work remains.

Council members and department staff discussed longer-term, structural options: changing how direct-distribution funds are used, directing franchise fees toward partner agencies, and reevaluating subsidies for recreation, transit and other programs that rely on direct distribution. Several council members urged outreach to the city’s state legislative delegation for backfill funding and warned the council against relying on savings or reserves to cover ongoing operational shortfalls.

What the city will do next: Staff said they will present a balanced budget to council in May that incorporates the measures described and will continue work to close the remaining roughly $240,000 gap. Carter asked department heads to keep the focus on preserving core services and recommended further work on longer-term structural changes if state revenue reductions continue.

Ending: Council members acknowledged the difficult choices ahead, said they wanted staff to return with a finalized budget that preserves public-safety services, and urged continued communication with legislators and the public about the local impacts of state tax changes.