$15.7 million budget calls for wage freezeTough economic times call for leaner budgets, and like many municipalities in Wyoming, the city of Powell reduced its operating budget for the next fiscal year.On Monday, the Powell City Council unanimously approved a $15.7 million budget for the 2010-11 fiscal year, beginning July 1 and ending June 30, 2011.

Facing an estimated 18 percent drop in sales tax revenue and a decrease of about $340,000 in state supplemental funding, city leaders made budget cuts wherever possible, said City Administrator Zane Logan.

This year's fiscal budget is $5 million less than last year's $20.8-million budget.

“If it's something that isn't an absolute necessity or obligation, it isn't in here,” Logan said at a budget work session last month.

Department budgets were maintained or reduced in most cases, with the exception of the Parks Department and Powell Aquatic Center budgets.

“The estimated revenues and appropriations for the general fund are expected to balance on June 30, 2011, excluding the aquatic center and Homesteader restroom,” Logan wrote in his budget message.

To pay for its portion of a $2 million state-funded project at Homesteader Park, the city will spend about $500,000 of its general fund reserves toward the venture, which encompasses 11 acres and includes a new rest area.

After using $500,000 in reserves for the Homesteader project, the city will have $1.4 million remaining in general fund reserves, said City Finance Director Annette Thorington.

The Homesteader construction is the only major capital project included in next year's budget.

Construction of the $10.3 million Powell Aquatic Center was substantially completed last month. The total revenue from a capital facilities tax, donations, a state grant and tax collection overage was $11.3 million. The additional $1 million allows for the purchase of a new ultraviolet filtration system for the pool.

This is the first year the city will operate and maintain the new aquatic facility, so the 2010-11 budget is based on best estimations rather than operational history. Projected revenue for the aquatic center is $217,475, while its estimated operating expenses are budgeted at $829,728.

Park County voters approved a capital facilities tax for the project in 2006, providing $9 million for the pool's construction and $2 million for an endowment.

The general fund budget was reduced in part by eliminating travel or training beyond what is needed for employee certifications.

The budget includes no raises or cost-of-living increases for city employees. The wage freeze results in about $102,000 in savings, and suspending the cost-of-living adjustment saves the city about $85,000, according to Logan's budget message.

Though the city isn't hiring new employees at this time, no employees were laid off.

“A lot of cities (in Wyoming) had to fire people,” said Mayor Scott Mangold. Because the city of Powell didn't use supplemental funding to hire people or in the daily operations, “we ended up better than a lot of communities.”

Over the past few years, the city's workforce has been reduced by four employees by not replacing those who leave for various reasons or by sharing employees between departments where possible.

Mangold said economic conditions in Powell have changed since last year — October brought a devastating beet freeze, around 40 employees with Weatherford International lost their jobs in the spring and sales tax revenue was down throughout the year.

“It's a 180 from last year,” he said. And, as a result, city spending has been curtailed.

“We can maintain what we're doing now, but we have to be more stringent,” Mangold said.

The economic climate also has affected interest rates on the city's investments.

Interest income was low on long-term investments — around 0.7 percent.

In an effort to gain a better return rate on the city's enterprise reserves, the council approved investing $6.5 million toward the Powellink bond.

The fiber-optic network Powellink, completed in the 2008-09 budget cycle, originally was financed as a private venture.

The city anticipates to generate a steady 2 percent return on the Powellink investment, and it will increase as more users subscribe. After investing the $6.5 million in the Powellink bond, the city still has around $5.6 million in reserves invested in various ventures, said Thorington.