Casper City Council is poised to formally approve the proposed 2009-2010 budget of $139,854,946 after a two-day review ending Thursday.

This budget, scheduled for a formal hearing and vote in June, reflects a tightening of projected mineral tax income as demand for energy products has declined nationwide, and staff cutbacks in local businesses that affect local economic activity and sales tax revenue, according to City Manager Tom Forslund.

While council members approved the main budget, they had to make tentative decisions on Thursday about bonuses for city employees, spending capital reserves for one-time projects, and support of some agencies not affiliated with the city.

The proposed budget is 16.5 percent less than the proposed $167,440,863 budget for the current fiscal year, and 1.5 percent less than the estimated $142,021,894 the city actually will spend.

Casper's Administrative Services Director V.H. McDonald said the decreases in the 2010 budget reflect the timing of capital projects that have been finished this year such as work at Fort Caspar, completed enterprise projects in utilities and leisure services, and some lower operating costs..

Most agencies followed the recommendations from the city manger's office that they not grant any cost of living raises to employees - except firefighters who work under a collective bargaining agreement - for the 2010 fiscal year.

While holding the line on cost-of-living raises, council members tentatively Tom Forslund's suggestion to approve a $1,000 one-time bonus for each employee, which will amount to about $750 after taxes. That one-time bonus will cost the city about $465,000.

Employees would be able to take that cash bonus, or convert it to vacation time, Forslund said.

After approving the bonuses, council members considered some proposed capital and one-time expenditures for projects.

The city has been receiving lower bids on construction projects, and the capital reserve funds have grown.

With some hesitation, council members set aside $5.5 million for performing arts center it promised the Citizens for a Civic Auditorium in an agreement signed in September.

"We're contractually bound to set aside that money," Maury Daubin said.

However, council members said they plan to meet with representatives of the Citizens for a Civic Auditorium during a work session in the next few weeks to discuss the status of the agreement.

Council members also debated whether to allocate $500,000 to the nonprofit 12/24 Club, which is a community center and restaurant for a variety of 12-step groups and recovering addicts.

The club recently purchased the former Coliseum Motors building, and intends to lease the ground floor and use the second floor for club space.

Keith Goodenough objected because the club's rental of business space would put the city in a position of subsidizing the nonprofit to the detriment of existing businesses.

On the other hand, Kate Sarosy said the 12-24 Club's plans meets two city goals of addressing alcohol abuse and improving downtown properties.

Council members tentatively approved $250,000 for the club.

Other capital projects won tentative approval included: $1.5 million to replace the roof of the Casper Events Center; an $80,000 match for a fire suppression project at the LifeSteps Campus; $250,000 for the campus itself; $1.3 million for upgrading the police department's wireless network; $500,000 - to be matched by federal stimulus money - for a storm sewer upgrade of the Sandbar area; $400,000 to upgrade electrical equipment at the Hogadon Ski Area; and $1 million for the "post employment health fund" for city employees.

However, council members turned down allocating $1,875,000 for an extension of 21st Street at Country Club Road because plans for residential construction along the street are uncertain.

Some council members also balked at allocating $100,000 to the Casper Area Economic Development Alliance for its proposed business incubator project on the Platte River Commons.

Goodenough, Maury Daubin and Kim Holloway said CAEDA historically has been less-than-forthcoming about how it spends its money, and whether economic development organizations do anything to diversify the economy.

But Paul Bertoglio said the incubator is mostly the brainchild of Casper College, and CAEDA will no longer be involved after the project begins. "I don't see CAEDA as the culprit here," Bertoglio said.

Council also tentatively approved some funding for noncity agencies such as the Chamber of Commerce, the Children's Advocacy Project, and the Casper Fire-EMS Combat Challenge Team.

Reach Tom Morton at (307) 266-0592, or at tom.morton@trib.com. Read his blog at tribtown.trib.com/TomMorton/blog.