City of Nevada FY 2019/2020 Budget Presented by: Matt Mardesen, City Administrator Kerin Wright, City Clerk February 7, 2019 City of Nevada You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
What is Nevada’s Financial Situation? Cash Solvency? Budgetary Solvency? Long-run Solvency? You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Purpose of Fund Balance Guard against revenue fluctuations You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
What is the City doing to Manage our Financial Situation? • Raised new revenues or increased fees • Cost Control • Doing More with Less • Releasing Residential from the TIF district • Lean – Reducing costs and improving service • FY 2020 TIF Certification Reduction You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
What are some examples of Financial Policies or Rules of Thumb that the City uses? (What is our tolerance for risk?) • Investment Policy • Debt Policy • Purchase Policy • Fund Balance Policy You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
How does the City monitor the finances? • Monthly budget to actual report • Monthly bank reconciliation • Quarterly budget line-item review per fund • Regular project status reports • Annual Audit • Annual Finance Report You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Budget as Team Sport The nice thing about teamwork is that you always have others on your side. --Margaret Carty You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Who are the Members of the City’s Finance Team? 1. Elected Officials: Council members Barb Mittman, Luke Spence, James Walker, Mayor Brett Barker, Dane Nealson, Jason Sampson and Brian Hanson 2. City Staff 3. Project specific technical experts (i.e. Engineers) 4. Independent financial advisors 5. Bond Counsel 6. Citizens You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
What are some of the City’s plans that help put together a City’s budget? • Vision 2020 Plan • Strategic Plan (2-year On-going Project and New Initiatives; Goals and Action Plans) • Departmental Forms and State Forms • Comprehensive Plan • Capital Improvement Plan • Equipment Revolving Plan • Financial Policies You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Nevada: A Financial Sound City • City services delivered in most effective manner • Upgraded City technology and financial systems (including data security) • Maintained best bond rating • Increased City’s financial reserves • Leveraged City resources through outside grants, partnerships and private contributions • Users paying for cost recovery of the delivery of City services You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Budget Timeline August – Updating the Insurance Renewal and Wellness Programs September/October – Updated plans and had discussion with budget committee on services and cost saving November – Budget worksheets out and due and Human Service groups made presentations December – Budget committee reviews LOT, H/M, TIF, and CIP spreadsheets before and after citizen committee makes Human Service group recommendations January – Staff fine tunes budget by line item, Council approves LOT, H/M and TIF distributions February – Budget work session and Set Public Hearing March – Public Hearing and Approve Budget You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Budget Year Fiscal Years: July 1-June 30 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Budget as a Plan Based on projections • • Actual experience may vary, may need to adjust during the year • Budget sets policy for the upcoming year, determines projects that will be undertaken, etc. Also a communication tool • You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Budget Adoption • Rigid and regulated by state • Budget is an appropriation, giving the city the authority to spend • Provides maximum citizen oversight You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Legislative Limits • State places limits • State requires expenditures • Water Excise Tax Results in mandates! You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Expenses $ Revenues July January June City Revenue Cycle You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Taxable Value Property Tax Base (assessed value of properties in the city) Several types of tax base: Residential • • Multi-Residential Commercial • • Industrial Agricultural • Utility • You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
State Limitations The Rollback means that property is not taxed at its full value, only a percent. State sets the percent for a whole class of property. Effects residential property the most. You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Levy Rates • Different rates available • Usage and/or amount is limited • Expressed in dollars and cents per 1000 General Fund capped at $8.10/1000 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Residential Property Example (Assessed Value) $100,000 X (State Limitation) 56.9180% Taxable Value $56,918 Example (Taxable Value) $56,918.00 X (City Levy Rate) $14.618/1000 Total City Property Tax Revenue $832.03 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
State Residential Rollback History The Table below illustrates the property tax the city would receive based on a $100,000 property. Residential FY 19/20 FY 18/19 FY 17/18 FY 16/17 Property Rollback 56.918% 55.6209% 56.9391% 55.6259% City Millage rate of $14.618 $14.618 $14.618 $14.618 Property Tax $832.03 $813.07 $832.34 $813.14 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Property Taxes: Where does it go? Given a $100,000 residential property FY18/19-- 55,621 FY19/20-- 56,918 FY 17/18– 56,939 Levy (Taxable) (Taxable) (Taxable) Levy Amount Levy Amount Levy Amount General Fund 8.10000 450.56 8.10000 450.52 8.10000 461.04 Civic Center-Gates Hall 0.135 7.69 0.135 7.51 0.135 7.68 Insurance (Tort/General) 0.55249 31.46 0.54669 30.41 0.40536 23.07 Memorial Bldg-Gates Hall 0.53000 30.18 0.53000 29.48 0.53000 30.17 Emergency (Public Safety) 0.27000 15.37 0.27000 15.02 0.27000 15.37 Employee Benefits 2.50752 142.78 2.61898 145.67 2.66469 151.67 Debt Services 1.84799 105.22 1.74233 96.91 1.92174 109.38 CIP-Trails 0.67500 38.43 0.67500 37.54 0.59121 33.65 TOTAL 14.6180 832.34 14.6180 813.06 14.6180 832.03 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Industrial/Commercial Property Example (Assessed Value) $100,000 X (State Limitation) 90% Taxable Value $90,000 Example (Taxable Value) $90,000 X (Levy Rate) $14.618/1000 Total Property Tax Revenue $1,315.62 You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
Industrial/Commercial Property Impact on Cities New rollback for commercial, industrial and railroad property o 95% in Assessment year 2013 (FY 2014-15 budget year) o 90% in Assessment Year 2014 and beyond (FY 2015-16) o State backfill – capped at FY 2017 per Governor’s term ROLLBACK FIGURES Property Class FY2020 FY2019 FY2018 FY 2017 FY 2016 Agricultural 56.1324% 54.4480% 47.4996% 46.1068% 44.7021% Commercial 90% 90% 90% 90% 90% Industrial 90% 90% 90% 90% 90% Railroad 90% 90% 90% 90% 90% Residential 56.9180% 55.6209% 56.9391% 55.6259% 55.7335% Multi-Residential 75% 78.75% 82.5% 86.25% NA You created this PDF from an application that is not licensed to print to novaPDF printer (http://www.novapdf.com)
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