The City Council of Rawlins held a special work session on January 2, 2025, focusing on the financial challenges facing the city, particularly regarding infrastructure projects and budget management. Key discussions highlighted the impact of inflation on project costs and the limitations of current funding sources.

City officials reported that the city collects approximately $1.3 million annually from the 6p tax, which is insufficient to cover the rising costs of planned infrastructure projects. For instance, the estimated cost for the Edinburgh Street replacement has surged from $2.3 million to potentially over $7 million, leading to delays in its execution. The council noted that while bonding could have provided upfront funds to mitigate inflation impacts, the city was not in a strong financial position to pursue this option.

The meeting also addressed the city's depreciation of assets, which totals around $21.7 million. Officials emphasized the need for a funded depreciation policy to ensure that sufficient funds are set aside for future asset replacements. Currently, the city has not established this fund, which complicates long-term financial planning.

In terms of budget management, the council is working towards a balanced budget, where revenues match expenditures. To achieve this, five vacant positions have been frozen, and several high-priority projects, including street improvements, have been postponed. The upcoming budget season will involve more collaboration with council members to prioritize funding and address the city's financial needs effectively.

Overall, the session underscored the city's ongoing struggle with inflation, funding limitations, and the necessity for strategic financial planning to maintain and improve infrastructure while ensuring fiscal responsibility. The council plans to initiate budget discussions with department heads in the coming weeks to address these challenges.