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N Nevada d League L off Cities Citi P Presentation t ti to t the th Financial Crisis Inquiry Commission September Septe be 8, 2010 0 0 Nevada League of Cities – September 8, 2010 1 Local Governments are Hurting We rely y on same revenues as State (except gaming taxes) O workforces Our kf are bare b bone b Program/services have been reduced or eliminated (preserving PS) We have not seen the bottom yet Nevada League of Cities – September 8, 2010 2 Similarity in Local Government and State Revenue Structures Revenue structure heavily dependent upon growth activities Sales Tax Property Tax C Construction t ti / Gaming G i Industries I d t i Nevada League of Cities – September 8, 2010 3 Similarity in Local Government and State Expenditures Between 75 – 80% of expenditures are attributed to salaries and related benefits Over 50% of State expenditures go towards schools Over 50% of local government expenditures go towards Public Safety Primary funding source for both is sales tax and property tax revenue Nevada League of Cities – September 8, 2010 4 Local Government General Fund Expenditures Service Area A 70% Service Area A • • • Public Safety Judicial Public Works Service i Area B • • • Service Area B 30% • General Government Culture & Recreation Economic Development Other Nevada League of Cities – September 8, 2010 5 General Fund Revenues (5 largest cities) Nevada League of Cities – September 8, 2010 6 CTX Composition (Cl k C (Clark County t D Dollars ll iin Milli Millions ffor FY09) $150.4 19% $2.1 $2 1 0% Basis SCRT Supp pp SCRT $9.7 $9 7 1% GST $22.6 3% RPTT Cigarette $96.2 12% $514.6 65% Nevada League of Cities – September 8, 2010 Liquor 7 Historical C C--Tax Revenue 25.0% 25 0% 22.5% 20.0% (5 Largest Cities – Combined Quarterly Growth Rate) 17.5% 15.0% 12 5% 12.5% 10.0% 7.5% Nevada League of Cities – September 8, 2010 8 FY Y09 FY Y08 FY Y08 FY Y07 FY Y07 FY Y06 FY Y06 FY Y05 FY Y05 FY Y04 FY Y04 FY Y03 FY Y03 FY Y02 FY Y02 FY Y01 FY Y01 FY Y00 -5.0% -7 5% -7.5% -10.0% FY Y00 0% 5.0% 2.5% 0.0% -2.5% Clark County CTX Analysis FY 2006 – FY 2010 (*) $965.5M $1,000,000,000 $900,000,000 $704.9M $ 0 9 $800,000,000 $700,000,000 $600,000,000 $500 000 000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 (*) 2010 estimates are annualized based upon YTD October 2009 actuals Nevada League of Cities – September 8, 2010 9 Washoe County CTX Analysis FY 2006 – FY 2010 (*) $197 5M $197.5M $200,000,000 $180,000,000 $137.9M $160 000 000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20 000 000 $20,000,000 $FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 (*) 2010 estimates are annualized based upon YTD October 2009 actuals Nevada League of Cities – September 8, 2010 10 Clark County Overlapping Property Tax Revenues (FY 2009 2009--10 Net of Abatement*) Combined Special District $383,617,022 15% Towns $82,399,672 3% State $141,808,605 6% Schools $1,015,439,924 42% Cities $$288,517,516 , , 13% Counties $492,493,506 21% (*) Source: Nevada Dept. of Taxation FY2009-10 Property Tax Rates Nevada League of Cities – September 8, 2010 11 Washoe County Overlapping Property Tax Revenues (FY 2009 2009--10 Net of Abatement*) Tow ns 0% Com bined Special District $39,281,756 7% % Cities $86 157 452 $86,157,452 17% State $24,372,276 5% Schools $163 948 483 $163,948,483 32% Counties $199,457,438 39% (*) Source: Nevada Dept. of Taxation FY2009-10 Property Tax Rates Nevada League of Cities – September 8, 2010 12 FY 20102010-11 Preliminary Segregation of the Tax Roll (Clark County Assessors Office as of December 4, 2009) TAXING ENTITY Clark County 2009-10 FINAL “REDBOOK" REDBOOK ESTIMATED 2010-11 TAX ROLL AS OF 12-4-09 VARIANCE FROM 2009 10 2009-10 FINAL $ 89,981,571,327 $ 65,082,130,243 -27.67% 675,629,306 473,554,689 -29.91% Henderson 12,969,946,316 9,600,970,957 -25.98% Las Vegas 18 289 314 192 18,289,314,192 13 450 962 341 13,450,962,341 -26.45% 26 45% 809,678,379 642,376,993 -20.66% $ 6,660,944,839 $ 4,445,320,597 -33.26% Boulder City Mesquite g North Las Vegas Nevada League of Cities – September 8, 2010 13 FY 20102010-11 Preliminary Segregation of the Tax Roll (Washoe County Assessors Office as of 01/25/10) TAXING ENTITY Washoe County 2009-10 FINAL “REDBOOK" ESTIMATED 2010-11 TAX ROLL AS OF 12-4-09 VARIANCE FROM 2009-10 FINAL $ 15,099,475,662 $14,042,512,366 -7% Reno $ 7,043,707,442 $5,987,151,326 -15% Sparks $ 2,471,777,303 $2,175,164,027 -12% Nevada League of Cities – September 8, 2010 14 Clark County A Assessed dV Valuation l ti T Trend d (2010 Estimate - Assessors Office as of 12/04/2009) $111.9 $120 B BILLIONS $100 $80 $64.5 $65.1 $60 $40 $20 $0 Source 20052005-09: NV Dept of Taxation “Redbook” 20 05 20 06 20 07 20 08 Nevada League of Cities – September 8, 2010 20 09 20 10 15 Washoe County Assessed Valuation Trend (2010 Estimate - Assessors Office as of 01/25/10) $20 $17.2 $18 B BILLIONS $16 $14.0 $14 $12 $12.0 $10 $8 $6 $4 $2 $0 Source 20052005-09: NV Dept of Taxation “Redbook” 20 05 20 06 20 07 20 08 Nevada League of Cities – September 8, 2010 20 09 20 10 16 FY 20102010-11 Property Tax Revenue P li i Preliminary E Estimate ti t (Using North Las Vegas as an Example) Impact willll depend d d upon unknown k remaining abatement b Severe impact to funds solely supported by property taxes Fund Estimated Change FY 2010 to FY 2011 General Fund ($ 4 to 6 million) Parks, Street Maint, Fire Fund ($ 4 to 5 million) P bli S Public Safety f t Tax T Fund F d Library District Total ($ 9 to t 11 million) illi ) ($ 1 to 1.5 million) ($ 18 to 23.5 23 5 million) Nevada League of Cities – September 8, 2010 17 Property Taxes Potential Areas of Concern Impact of foreclosures Impact of declining land values Impact of declining home values Impact of commercial properties Lack of new growth Increase in appeals to the State Board of EqualizationEqualization-Commercial Nevada League of Cities – September 8, 2010 18 Actions Taken by L Local l Governments G t Hiring freeze / elimination of vacancies CIP p project j delays y / eliminations Voluntary Separations Program eliminations / reductions Nevada League of Cities – September 8, 2010 19 Budget Reductions Already Taken by Nevada Cities FY 2009/10 Boulder City $2.0M Henderson $86.0M Las Vegas $120.0M $120 0M North Las Vegas $51.0M Reno $29.2M Sparks p $ $1.5M Nevada League of Cities – September 8, 2010 20 Further F rther Actions Request discussions with bargaining units Continue to reprioritize CIP projects Reduce / eliminate services Pursue privatization/outsourcing Execute layoffs as necessary Nevada League of Cities – September 8, 2010 21 Nevada League of Cities Presentation Questions? Nevada League of Cities – September 8, 2010 22
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