FY 2017/2018 Budget Presented by: Matt Mardesen, City Administrator - PowerPoint PPT Presentation

City of Nevada FY 2017/2018 Budget Presented by: Matt Mardesen, City Administrator Kerin Wright, City Clerk February 6, 2017 City of Nevada

What is Nevada’s Financial Situation? Cash Solvency? Budgetary Solvency? Long-run Solvency?

General Fund - Budget to Actual Beginning Transfers Transfers Ending Balance Revenue In Expenditures Out Balance 2010/2011 Budget 2,152,996 702,915 2,874,773 9,137 (37,999) Actual 2,101,949 2,261,486 692,701 2,635,680 750 2,419,706 5.04% -9.07% 317,757 2011/2012 Budget 2,246,002 733,351 3,000,179 1,000 (21,826) Actual 2,419,706 2,276,751 728,971 2,775,192 1,000 2,649,236 1.37% -7.50% 229,530 2012/2013 Budget 2,405,797 805,229 3,101,656 110,500 (1,130) Actual 2,649,236 2,268,810 793,623 2,880,331 114,158 2,717,180 -5.69% -7.14% 67,944 2013/2014 Budget 2,484,062 862,946 3,218,110 18,398 Actual 2,717,180 2,446,587 877,729 3,077,619 2,000 2,961,877 -1.51% -4.36% 244,697 2014/2015 Budget 2,186,722 616,456 2,787,703 15,475 Actual 2,961,878 2,234,416 972,609 3,035,279 89,361 3,157,260 2.18% 8.88% 82,385 2015/2016 Budget 2,450,881 1,020,240 3,751,762 94,000 (374,641) Actual 3,157,260 2,474,907 1,116,571 3,651,640 20,000 3,077,099 .97% -2.67% (80,161) 2016/2017 Budget 2,613,908 955,116 3,670,576 0 (101,552) Actual 2017/2018 Budget 2,572,026 1,129,215 3,792,520 20,000 (111,279) Actual

Purpose of Fund Balance Guard against revenue fluctuations

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

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

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 • Audit • Annual Report

Budget as Team Sport The nice thing about teamwork is that you always have others on your side. --Margaret Carty

Who are the Members of the City’s Finance Team? 1. Elected Officials: Mayor Lynn Lathrop, Council members Barb Mittman, Andy Kelly, James Walker, Ray Schwichtenberg, Brett Barker and Brian Hanson 2. City Staff 3. Project specific technical experts (i.e. Engineers) 4. Independent financial advisors (i.e. Chip Schultz) 5. Bond Counsel 6. Citizens

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

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

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

Budget Year Fiscal Years: July 1-June 30

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

Budget Adoption • Rigid and regulated by state • Budget is an appropriation, giving the city the authority to spend • Provides maximum citizen oversight

Legislative Limits • State places limits • State requires expenditures Results in mandates!

Expenses $ Revenues July January June City Revenue Cycle

Taxable Value Property Tax Base (assessed value of properties in the city) Several types of tax base: • Residential • Multi-Residential • Commercial • Industrial • Agricultural • Utility

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.

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

Slicing the Property Tax Pie

Taxes Levied

Residential Property Example (Assessed Value) $100,000 X (State Limitation) 56.9391% Taxable Value $56,939.10 Example (Taxable Value) $56,939.10 X (Levy Rate) $14.618/1000 Total Property Tax Revenue $832.34

Rollback Figures Residential FY 17/18 FY 16/17 FY 15/16 FY 14/15 Property Rollback 56.9391% 55.6259% 55.7335% 54.4002% City Millage rate of $14.618 $14.618 $14.618 $14.99653 Property Tax $832.34 $813.14 $814.71 $815.81

Property Taxes: Where does it go? Given a $100,000 residential property FY15/16 – 55,733 FY 16/17 – 55,625 FY17/18-- 56,939 Levy (Taxable) (Taxable) (Taxable) Levy Amount Levy Amount Levy Amount General Fund 8.10000 451.44 8.10000 450.56 8.10000 461.21 Civic Center-Gates Hall 0.13500 7.52 0.00657 .37 0.135 7.69 Insurance (Tort/General) 0.54122 30.16 0.54927 30.56 0.55249 31.46 Memorial Bldg-Gates Hall 0.53000 29.54 0.53000 29.48 0.53000 30.18 Emergency (Public Safety) 0.26999 15.05 0.27000 15.02 0.27000 15.37 Employee Benefits 3.07084 171.15 2.64148 146.93 2.50752 142.78 Debt Services 1.29595 72.23 1.84568 102.67 1.84799 105.22 CIP-Trails 0.67500 37.62 0.67500 37.55 0.67500 38.43 TOTAL 14.6180 814.71 14.6180 813.14 14.6180 832.34

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

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 FY2018 FY 2017 FY 2016 FY 2015 FY2014 Agricultural 47.4996% 46.1068% 44.7021% 43.3997% 59.9334% Commercial 90% 90% 90% 95% 100% Industrial 90% 90% 90% 95% 100% Railroad 90% 90% 90% 95% 100% Residential 56.9391% 55.6259% 55.7335% 54.4002% 52.8166% Multi-Residential NA NA NA 82.5% 86.25%

Industrial/Commercial Property Impact on Cities New multi-residential property class Assessment Rollback Fiscal Year o 8 year rollback schedule Year Percentage 2015 86.25% 2017 o 90% in Assessment Year 2014 2016 82.5% 2018 and beyond (FY 2015-16) 2017 78.75% 2019 o No backfill 2018 75% 2020 2019 71.25% 2021 2020 67.5% 2022 2021 63.75% 2023 2022 and Equal to 2024 beyond residential

City Impact: 3% Cap on Growth Fiscal Year Previous SF 295 Backfill SF 295 + Difference Law Backfill 2017-18 $4,469,139 $4,198,121 $161,408 $4,359,529 ($109,610) 2018-19 $4,724,413 $4,401,893 $161,408 $4,563,301 ($161,112) 2019-20 $4,961,092 $4,588,417 $161,408 $4,749,825 ($211,267) 2020-21 $5,256,145 $4,821,269 $161,408 $4,982,677 ($273,468) 2021-22 $5,532,280 $5,036,986 $161,408 $5,198,394 ($333,886) 2022-23 $5,874,776 $5,303,555 $161,408 $5,464,963 ($409,813) 2023-24 $6,192,039 $5,534,524 $161,408 $5,695,932 ($496,107)

Nevada Tax Rates: Tax Year FY 16/17 FY 15/16 FY 14/15 FY 13/14 FY 12/13 City 14.61800 14.61800 14.99653 15.32974 15.42934 School 16.81007 16.80944 16.75171 15.71000 15.61527 County 6.32209 6.87735 6.57879 6.67967 6.69879 Other 0.72334 0.67574 .65724 .69450 058800 Total 38.4735 38.98053 38.98427 38.41391 38.3314 % to City 38% 37% 38% 40% 40%

Historic Tax Levy for Nevada $18.00 FY 16-17 $16.00 FY 15/16 14.61800 FY 14/15 14.99653 $14.00 FY 13/14 15.32974 $12.00 FY 12/13 15.42934 FY 11/12 15.00435 $10.00 FY 10/11 15.00435 $8.00 FY 09/10 15.12870 FY 08/09 15.12874 $6.00 FY 07/08 14.87874 $4.00 FY 06/07 14.87874 $2.00 FY 05/06 14.88108 FY 04/05 14.87863 $0.00 FY 03/04 14.35684 FY FY FY FY FY FY FY FY FY FY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FY 02/03 14.19251 FY 01/02 14.38557 FY 00/01 14.32364 FY 99/00 14.59955 NEVADA TOTAL PROPERTY TAX LEVY - BUDGETED