Cody council passes first reading of FY2026 budget; resident raises concerns about general fund deficit

The Cody City Council on an evening meeting approved the first reading of an ordinance adopting the City of Cody's fiscal year 2026 budget, which staff presented as projecting $43,998,000 in revenues and $49,110,000 in expenditures with a projected ending fund balance of $42,174,670.

City staff member Leslie Bromage told the council the FY2026 budget was prepared to align with the council's priorities — infrastructure, public safety, workforce, fiscal responsibility and recreation — and that the proposal followed generally accepted accounting principles and conservative revenue estimates. Bromage said changes from the proposed budget include a $22,080 increase to the city attorney contract, a $100,000 reduction in interfund transfers to the technology replacement fund, the addition of $3,500 for security cameras at Mentock Park and a $200,000 allocation for the Westgard Waterline Extension. She also described reductions in proposed utility rate increases: a proposed 9% water increase was cut to 3%, storm drainage was reduced from 9% to 5%, and previously proposed increases for solid waste, wastewater and electric were removed.

Bromage said 36 capital improvement projects are budgeted for $11,450,000 in FY2026, and that the comprehensive summary separates cash and investments into assigned, committed, restricted and unassigned categories.

During public comment, Ward 2 resident Heidi Rasmussen disputed local news coverage of the budget and warned the council about the general fund position. Rasmussen said the electric fund is the only fund she considered balanced and that "the general fund has a $1,400,000 deficit." She criticized continued spending levels and urged the council to match services to expected revenue, saying, "It is my feeling that we are continuing to eat caviar, and we're gonna go straight to ramen noodles." Rasmussen also said newspaper reporting overstated electric fund reserves, calling one article's claim of 24 months of reserves incorrect and saying the electric fund holds about 12 months of reserves.

A motion to approve the first reading of the budget ordinance carried after council members voiced agreement; the transcript records the motion, a second and the council saying "aye," and the presiding officer stating the motion passed. The ordinance appears on the agenda as Ordinance 20 25 15 (first reading).