POSSIBILITIES. The Iceberg $17 Million Infrastructure Reinvestment Needed Annually The Iceberg $2...

POSSIBILITIES

The Iceberg

$17 Million Infrastructure ReinvestmentNeeded Annually

The Iceberg$2 Million

WHAT HAVE WE DONE SO FAR?

We Have Been Fiscally Responsible

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

We Maintain Low Employee to Citizen Ratio

*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.

Per one thousand residents

Num

ber

of e

mpl

oyee

s

6.8

8.4

6.4

8.8

9.5

City Property Tax Rate

Henderson Reno Las Vegas* North Las Vegas

$0.71

$0.96

$1.06

$1.16

*Includes Las Vegas portion of Metro

What Can We Change Now?Possible Not Possible

INCREASEBusiness License Fees

Park and Recreation Fees Property Tax Rate

INCREASE OR IMPOSESales Modified Business Tax

Corporate Income Tax Personal Income Tax

Gross Gaming Fees Mining TaxGovernmental Services Fees

Car Rental Taxes Insurance Premium Taxes Motor Vehicle Fuel Taxes

Franchise FeesRoom Taxes

Live Entertainment Taxes

CUT SERVICES

Possible Recommendation

Short Term FY2015 Long Term FY2016 +

Fee Increases Fee Study

Property Tax Increases

(Council Imposed)


(Council Imposed)


(Ballot Question)


(Ballot Question)

Cuts To Services Cuts to Services

Total

POSSIBILITY #1FEE INCREASES

Business License Fees

$5.4 million FY2014 BudgetPer NRS 354.5989 business license fees cannot be increased above a prescribed maximum.

Gross Revenue Allowable Maximum

2012 Business License Revenue

$3,161,110

CPI Adjustment (1.80%) 56,900

Allowable Maximum FY2013 $3,218,010Fixed Rate Allowable Maximum

2012 Business License Revenue $2,059,122

CPI Adjustment (1.80%) 37,064

Change in Population (3.51%) 72,275

Allowable Maximum FY2013 $2,168,461

Parks and Recreation Fees

$7.2 millionAquaticsSportsYouth EnrichmentReservations and Room Rentals

P&R Pricing Philosophy

Public Services Low level or no user fees All users provide same level of access

Merit Services Partial or full cost recovery User receives higher level of benefit than General Taxpayer Provide community benefit

Private Services Full Cost Recovery Benefit to User No or little community benefit

Potential Fee Increases

Increase Participant ID Card $35K

Increase Sports fees $200K

Streamline Safekey fees $200K

Increase ABC preschool fees $13K

Increase Aquatic fees $75K

Total $523K

Comprehensive Rate Study

Last study 2009

New Study

Committee Discussion

POSSIBILITY #2PROPERTY TAX RATE

Assessed Valuation (In Billions)

FY 2014 is 48% below the peak of FY 2009 and still below the levels of FY 2006

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$7.6

$9.9

$13.8

$15.9$16.3

$13.0

$9.8$8.9

$8.3 $8.5

(In

Bil

lio

ns)

Property Tax Revenue All Funds

FY 2014 is 32% below the peak of FY 2009 and below the levels of FY 2006

2005 2006 2007 2008 2009 2010 2011 2012 2013 Esti-

mated

2014 Budgetd

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$56.1

$64.3

$73.6

$80.8 $85.7

$82.3

$67.3

$62.8 $58.6 $58.5

(In

Mil

lio

ns)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Property Tax Projection

Actual

4% increase per year

Projected

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Property Tax Projection



Actual Projected

Henderson Property Tax Revenue

P 1,499C 718R <781>

P = Peak C = Current R = Reduction

28%11 years to

recover

52%25 years to

recover

45%20 years to

recover17%7 years to

recover

Lake Las Vegas

Paradise Hills

North Green Valley

AnthemP554C306R<248>

P 470C 338R <132>

P 802C 662R <140>

Henderson Property Tax Revenue

P = Peak C = Current R = Reduction

28%11 years to

recover

North Green Valley

P 470C 338R <132>

2008 2010 2012 2014 2016 2018 2020 2022 2024 2025 $-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$-

$100

$200

$300

$400

$500

$600

$700

$800

Assessed Value City Tax Bill

Would have been $239 higher without tax cap.

Home Rate Calculation

6% Growth Rate 3% Growth Rate

Property Tax Rates

City Rate Rate

Henderson $0.71

Reno $0.96 +$0.25

Las Vegas* $1.06 +$0.35

North Las Vegas $1.16 +$0.45

Calculated At Current Henderson Assessed Valuation

* Las Vegas rate includes LV portion of Metro

City Rate RateRevenue

Generated

Henderson $0.71 $58.5 M

Reno $0.96 +$0.25 $79.1 M

Las Vegas* $1.06 +$0.35 $87.3 M

North Las Vegas $1.16 +$0.45 $95.6 M

City Rate RateRevenue

GeneratedDifference

Henderson $0.71 $58.5 M

Reno $0.96 +$0.25 $79.1 M +$20.6 M

Las Vegas* $1.06 +$0.35 $87.3 M +$28.8 M

North Las Vegas $1.16 +$0.45 $95.6 M +$37.1 M

Property Tax Rate Increases

Current COH portion of Tax Bill is $435.37

Rate Increase

Potential Money Generated

Additional Cost to $175,000

home per year

$0.01 $825,000 $6.13

Rate Increase

Potential Money Generated

Additional Cost to $175,000

home per year

$0.01 $825,000 $6.13

$0.05 $4,125,000 $30.63

$0.10 $8,250,000 $61.25

$0.15 $12,375,000 $91.88

$0.20 $16,500,000 $122.50

$0.25 $20,625,000 $153.13

Possible Recommendation

Short Term FY2015 Long Term FY2016 +


(Council Imposed)

$0-$2,475,000*

(3 cents)

Currently No additional

Capacity$0


(Ballot Question)$0


(Ballot Question)

$825,000-$16,500,000

(1 cent -20 cents)

*Subject to Tax Caps - could be significantly less

Committee Discussion

NEXT MEETING DECEMBER 4Committee recommendations

POSSIBILITIES. The Iceberg $17 Million Infrastructure Reinvestment Needed Annually The Iceberg $2...

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