Henderson Facts. Population of approximately 271,000. Second largest city in Nevada. Full-service city/services provided:

Transcription

1

2

3 Henderson Facts Population of approximately 271,000 Second largest city in Nevada 105 square miles Full-service city/services provided: Water Wastewater Police Fire Emergency medical services Premier parks, trails, public safety, infrastructure, master-planned communities and economic opportunities 95% resident satisfaction rate; strong sense of community

4 Strong Financial Management Policies Financial Reserves Strong Relations With Employee Groups Addressed The Economic Downturn Early

5 Maintain Low Employee to Citizen Ratio Number of employees Per one thousand residents *City of Las Vegas includes portions of the Metropolitan Police Department and Las Vegas Valley Water District. Information compiled by City of Henderson Community Development Department May, 2013.

6 Property Tax Rates $1.40 Property Tax Rate $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $ North Las Vegas $1.16 $1.16 $1.16 $1.16 Las Vegas (*) Reno Henderson * Includes Las Vegas portion of the Las Vegas Metropolitan Police Department.

7 2014 Budget Overview Enterprise Funds $165.8 M 0 General Fund $219.1M Internal Service $52.8M Capital Projects $12.4M Debt Service $8.1M Special Revenue $21.5M $479.8 Million

8 Special Revenue Funds Special Revenue Fund $21.5M Restricted For Specific Purposes Includes: Gas Tax Forfeited Assets Grants Municipal Court Admin Fee Sales & Use (More Cops) Commissary Code Enforcement

9 Debt Service Funds Debt Service Funds $8.1M Payment for Long Term Debt

10 Capital Projects Funds Capital Projects Funds $12.4M Acquisition or Construction of Facilities/Infrastructure Includes: Special Recreation Land Sales Municipal Facilities Park Development Special Assessment (LID) Capital Replacement

11 Internal Service Funds Internal Services Funds $52.8M Provides service to other departments or government units on cost reimbursement basis Includes: Engineering City Shop Self Insurance Liability Health Workers Comp Citywide Services

12 Enterprise Funds Enterprise Funds $165.8M Provides service to the general public on a user fee basis Includes: Water Sewer Development Services Municipal Golf Course Cultural Arts & Tourism

13 General Fund General Fund $219.1M Basic Municipal Operations

14 Budgeted Expenditures by Function FY 2014 General Fund* Judicial 5.4% Community Support 0.9% Building Inspection 0.7% Fire 18.0% General Govt 19.2% Public Works 3.0% Culture & Recreation 16.7% Police Department 36.1% * Adopted Final Budget, Excludes Transfers Out

15 Budgeted Expenditures by Function FY 2014 General Fund* Community Support Judicial 0.9% 5.4% Building Inspection 0.7% Fire 18.0% General Govt 19.2% Public Works 3.0% Culture & Recreation 16.7% Police Department 36.1% Nearly 55% of the General Fund Budget is allocated for Public Safety * Adopted Final Budget, Excludes Transfers Out

16 Budgeted Expenditures by Function Parks & Recreation and Public Safety Community Support Judicial 0.9% 5.4% Building Inspection 0.7% Fire 18.0% General Govt 19.2% Public Works 3.0% Police Department 36.1% Culture & Recreation 16.7% More than 70% of the General Fund Budget * Adopted Final Budget, Excludes Transfers Out

17 General Fund Revenues FY 2014 Budget* Fines & Forfeits 2.3% Misc 0.3% Charges for Services 11.9% Property Tax 25.8% Franchise Fees 14.4% Licenses & Permits 3.8% Intergovernmental (CTAX) 41.5% * Excludes other sources

18 General Fund Revenues FY 2014 Budget* Charges for Services 11.9% Fines & Forfeits 2.3% Misc 0.3% Property Tax 25.8% Franchise Fees 14.4% Licenses & Permits 3.8% Intergovernmental (CTAX) 41.5% Nearly 70% of the General Fund Revenue is Tax Based * Excludes other sources

19

20 Assessed Valuation (In Billions) $18.0 $16.0 $15.9 $16.3 $14.0 $12.0 $13.8 $13.0 (In Billions) $10.0 $8.0 $7.6 $9.9 $9.8 $8.9 $8.3 $8.5 $6.0 $4.0 $2.0 $ FY 2014 is 48% below the peak of FY 2009 and still below the levels of FY 2006

21 Property Tax Revenue All Funds $90.0 $80.0 $73.6 $80.8 $85.7 $82.3 $70.0 $64.3 $67.3 $60.0 $56.1 $62.8 $58.6 $58.5 (In Millions) $50.0 $40.0 $30.0 $20.0 $10.0 $ Estimated FY 2014 is 32% below the peak of FY 2009 and below the levels of FY 2006

22 Consolidated Tax (In Millions) $120 $100 $96.7 $103.0 $99.6 $92.5 $86.3 (In Millions) $80 $60 $77.8 $70.1 $74.0 $77.1 $81.1 $40 $20 $ Estimate 2014 Budget FY 2014 is 16% below the peak of FY 2006

23

24 Personnel Related Costs Hiring Freeze (October 2008) Overtime restrictions (October 2008) Travel and Training restrictions (October 2008) Offered Voluntary Employee Severance Plan (January 2009) Holiday & Holiday Pay Restrictions/Eliminations (FY 2009) Tuition Reimbursement Limitations (January 2009) Compensatory time in lieu of overtime (January 2009) Voluntary Furlough Program (March 2009) Elimination of Deferred Comp Match (July 2009)

25 Personnel Related Costs Elimination of vacant positions (July 2009) Elimination of vehicle allowances (July 2009) Elimination of COLAs for Non-represented, Police, and Teamsters (July 2009) Reduction of COLA for Fire Union (July 2009) Offered Voluntary Employee Severance Program (May 2010) Negotiated zero COLAs for FY2010, FY2010 and FY2012 for all groups (Various) Concessions from all employees equivalent to 2% of pay for FY2013 & FY2014 (Various) Negotiated zero COLAs for all Employees for FY2013 & FY2014 (Various)

26 Operating Costs Base Budget Cuts of 3.5% from all departments operating budgets (November 2008) Reduction of Internal Service Charges (FY 2009) Cell phone policy revisions and restrictions (June 2009) Implemented Category 1 of Contingency Plan Cuts (July 2009) Consolidated citywide Xerox contracts (September 2009)

27 Operating Costs Implemented a true 4-day work week (closing city hall on Fridays) (September 2009) Implemented Category 2 of Contingency Plan Cuts (February 2010) Reduced DSC Staffing and Operating Budget (March 2011) Implemented additional Contingency Cuts (March 2013)

28 Capital Costs Postponed Capital Improvement Projects including Henderson Convention Center Remodel and Fleet Maintenance Facility (October 2008) Extension of life of City vehicles (FY 2009) Reduction of City vehicle inventory (FY 2009)

29 Summary More than $127 million in cuts Reduced Non-Public Safety Staff by 16% Reduced Non-Represented Compensation by 6%-11% Eliminated COLAs for employees for FY 2009 through FY 2014 Concessions from all employees equal to 2% of pay for FY 2013 and FY 2014

30

31 General Fund 5-Year Plan (In Millions) Estimate 2012/13 Budget 2013/14 Projected 2014/15 Projected 2015/16 Projected 2016/17 Total Revenue $208.6 $215.7 $222.3 $229.4 $237.4 Total Expenses (204.8) (219) (224.2) (228.7) (231.2) Transfers Out (4.4) (4.2) (5.1) (5.1) (5.1) Anticipated Under Expenditures/ Vacancy Savings Operating Income/(Loss) (.6) (2.8) (3.3) (.9) 4.5 VESP Costs (6.7) Reserves Needed to Meet Financial Policy Projected Ending Fund Balance $17.3 $17.9 $18.4 $19 $23.5

32 History of Ending Fund Balance General Fund $ % $35.0 $ % 16.00% 14.00% (In Millions) $25.0 $20.0 $ % 12.00% 10.00% 8.00% $10.0 $ % 4.00% 2.00% $- 0.00% Projected Fund Balance EFB EFB as as a % a % of of Revenues

33 History of Reserves and Capital Fund Balances 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000-6/30/2010 6/30/2011 6/30/2012 6/30/2013 est City Shop Municipal Facilities Financial Stabilization Fund

34 Citywide Expenditure Budget and Population *Estimated

35

36 Ongoing Strategies VESP leaving positions vacant Class and comp study Benefit package restructure Henderson Quality Initiative (HQI)

37

38 Challenges Revenue Limited Control Impeded Recovery

39 What is Not Possible What is Possible Increase Business License Fees Increase Development Fees Increase Park and Recreation Fees Increase Property Tax Rate Cut Services Increase Sales Tax Increase Modified Business Tax Impose a Corporate Income Tax Impose a Personal Income Tax Increase Gross Gaming Fees Increase Mining Tax Increase Governmental Services Fees Increase Car Rental Taxes Increase Insurance Premium Taxes Increase Motor Vehicle Fuel Taxes Increase Franchise Fees Increase Room Taxes Increase Live Entertainment Taxes

40 Assessed Valuation (In Billions) $18.0 $16.0 $15.9 $16.3 $14.0 $12.0 $13.8 $13.0 (In Billions) $10.0 $8.0 $7.6 $9.9 $9.8 $8.9 $8.3 $8.5 $6.0 $4.0 $2.0 $ FY 2014 is 48% below the peak of FY 2009 and still below the levels of FY 2006

41 Property Tax Revenue All Funds $90.0 $80.0 $73.6 $80.8 $85.7 $82.3 $70.0 $64.3 $67.3 $60.0 $56.1 $62.8 $58.6 $58.5 (In Millions) $50.0 $40.0 $30.0 $20.0 $10.0 $ Estimated FY 2014 is 32% below the peak of FY 2009 and below the levels of FY 2006

42 Henderson Property Tax Revenue North Green Valley 28% 11 years to recover Anthem 17% 7 years to recover P470 C 338 R<132> P802 C662 R<140> P 1,499 C 718 R <781> P 554 C306 R<248> Lake Las Vegas 52% 25 years to recover Paradise Hills 45% 20 years to recover P = Peak C = Current R = Reduction

43 Challenges Revenue Limited Control Impeded Recovery Labor Contracts Expire June 2014

44 Challenges Revenue Limited Control Impeded Recovery Labor Contracts Expire June 2014 Maintaining Current Service Levels

45 Challenges Revenue Limited Control Impeded Recovery Labor Contracts Expire June 2014 Maintaining Current Service Levels Infrastructure Reinvestment

46 The Iceberg The Iceberg $2 Million $17 Million Infrastructure Reinvestment Needed Annually

47