Using Data to Drive Financial Decisions in Washoe County Dave Childs, ICMA-CM Assistant County Manager Washoe County, Nevada

Key Points of this Presentation Description of Washoe County Financial Issues Facing the County What the Data Told Us Charting Our Course (COC) and Tiered Budget Reductions – How We Responded Changes for Next Year Building and Safety – Data Driven Cuts

About Washoe County Includes the Cities of Reno and Sparks and a portion of the Lake Tahoe Basin (including Incline Village and Crystal Bay) 420,000 population (110,000 located in the unincorporated area) 6300 square miles 3100 County employees in 2006 General Fund about $330 million

The Fiscal Challenge Sales tax revenues have declined in 28 of the last 29 months (19.2% drop in June 2009) Unemployment at 12.2% Soaring foreclosure rates (59% of the 4000 home listings are classified as “distressed”) Plummeting home prices (the median price of a new home in Feb 2006 was $423,300 and by July 2009 it was $242,000) Property tax reductions will follow value reductions (with revenue recovery further impacted by a 3% cap in property tax growth)

Sales Tax Revenues

FY09-10 Budget Scenarios

The Structural Gap

“Charting Our Course” Exercise to Calibrate the Budget Decision Making Process Only Moderately Successful…BUT… Set the Framework for Creating a Process of Tiered Budget Cuts in and Allowed for Departmental Buy-in on the Budget Reduction Process

FY08-09 Mid-Year Tiered Reductions Public Safety – 2.5% Courts and Social Services – 5% General Government (internal services, planning, public works, etc.) - 10% Parks and Libraries – 15% (Resulted in about a $20 million expenditure reduction)

FY09-10 Tiered Reductions Public Safety – 6% Courts and Social Services – 12% General Government (internal services, planning, public works, etc.) - 28% Parks and Libraries – 36% (cumulative cuts over two years were about 53%) Led to Re-evaluation of Missions (e.g. “clean, safe, and open”)

Cutting the Budget Huge budget gap ($47 million for FY09-10) Compounded by millions in State Legislative takeaways in July 2009 Employee wage freezes, and most bargaining units take a 2.5% pay cut for most of calendar year 2009 Reduction of 500 employees over past 24 months (250 by position freezes, 150 by retirement incentives, 100 by layoffs) Service reductions (programs and facilities)

Some Successful Steps Achieved Overall Budget Target (with some departmental adjustments) Continuous Consistent Communication to Public, Staff and Board is Critical (website Q&A, town hall meetings with staff, updates) Debriefing Survey to Department and Division Heads (performance measurement) Have Initiated Workforce Recovery Task Force in Partnership with Employee Bargaining Units

Changes for Next Year? The Dangers of Crippling Key Programs Disproportionate Impacts…Recalibrating? Maintaining Buy-In of Department Heads and Elected Officials (swimming pools library hours, and public safety) Citizen Acceptance Bargaining Unit Relationships Sustainability Concerns

Building Permit Trends in the 1990’s

…and then the crash.

Managing Costs By the Numbers

Building Department – Analyzing Workload (current and projected)