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City administrator outlines legal test, recommendations and next steps for FY27 GPET service agreements
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Summary
City Administrator Stuart McCray reviewed 20 GPET service agreement requests, summarized a 2023 memorandum on legal limits (Wyoming Constitution Article 16, Section 6 and state statutes), said the mayor recommended funding 12 requests in full, reducing six and denying two, and estimated GPET revenue rising from about $4.8M to just over $5.0M; council will review allocations line-by-line next week.
City Administrator Stuart McCray presented the FY27 General Purpose Excise Tax (GPET) service agreement process and the legal framework staff used to evaluate 20 nonprofit applications.
McCray summarized a 2023 memorandum by Brennan Kearns and the three-factor test drawn from Wyoming authority that staff use to determine whether municipal payments to nonprofits are lawful: (1) whether a public purpose exists for the transaction; (2) whether adequate consideration is exchanged if a private benefit could result; and (3) whether there is independent statutory authority for the municipality to act. He cited Wyoming Constitution Article 16, Section 6 (limits on municipal gifts or donations) and state statutory provisions spanning Title 15 that define municipal powers and allowable contracting purposes.
McCray said staff documented how each applicant meets a public purpose (for example, victim advocacy and crisis services tied to public safety), laid out reporting and presentation requirements built into city service agreements (February and July reports and a required council presentation), and explained that if the ballot measure to collect the 1¢ GPET fails in the fall, planned service agreements would not proceed because the funding is contingent on voter approval.
The mayor’s preliminary recommendations, as presented, would fund 12 of 20 applicants at requested levels, reduce funding for six applicants, and recommend no funding for two. Staff estimated GPET revenues conservatively at just over $5.0 million for next year (up from about $4.8 million this year) and noted the mayor’s draft ballot categories and a forthcoming resolution to set the ballot language expected in May; formal allocation decisions will be made after line-by-line review at the next council meeting.
Council members asked about advance notice for substantive questions; staff encouraged members to provide questions in advance so staff can prepare answers for the next meeting. McCray and staff emphasized that if council increases an allocation above an applicant’s stated scope it may be harder to hold the applicant to the contracted services.
