POSSIBILITIES

The Iceberg $17 Million Infrastructure Reinvestment Needed 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, Per one thousand residents Number of employees

City Property Tax Rate *Includes Las Vegas portion of Metro

What Can We Change Now? PossibleNot Possible INCREASE Business License Fees Park and Recreation Fees Property Tax Rate INCREASE OR IMPOSE Sales Modified Business Tax Corporate Income Tax Personal Income Tax Gross Gaming Fees Mining Tax Governmental Services Fees Car Rental Taxes Insurance Premium Taxes Motor Vehicle Fuel Taxes Franchise Fees Room Taxes Live Entertainment Taxes CUT SERVICES

Possible Recommendation Short TermFY2015Long TermFY Fee IncreasesFee Study Property Tax Increases (Council Imposed ) Property Tax Increases (Council Imposed) Property Tax Increases (Ballot Question) Property Tax Increases (Ballot Question) Cuts To ServicesCuts to Services Total

POSSIBILITY #1 FEE INCREASES

Business License Fees $5.4 million FY2014 Budget Per NRS 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$3,218,010 Fixed 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 million Aquatics Sports Youth Enrichment Reservations 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 #2 PROPERTY TAX RATE

Assessed Valuation (In Billions) FY 2014 is 48% below the peak of FY 2009 and still below the levels of FY 2006

Property Tax Revenue All Funds FY 2014 is 32% below the peak of FY 2009 and below the levels of FY

Property Tax Projection Actual 4% increase per year Projected

Property Tax Projection 5% increase per year 4% increase per year ActualProjected

Henderson Property Tax Revenue P1,499 C718 R P = Peak C = Current R = Reduction 28% 11 years to recover 52% 25 years to recover 45% 20 years to recover 17% 7 years to recover Lake Las Vegas Paradise Hills North Green Valley Anthem P554 C306 R P470 C338 R P802 C662 R

Henderson Property Tax Revenue P = Peak C = Current R = Reduction 28% 11 years to recover North Green Valley P470 C338 R

Would have been $239 higher without tax cap. Home Rate Calculation 6% Growth Rate 3% Growth Rate

Property Tax Rates City RateRate Henderson$0.71 Reno$ $0.25 Las Vegas*$ $0.35 North Las Vegas$ $0.45 Calculated At Current Henderson Assessed Valuation * Las Vegas rate includes LV portion of Metro City RateRate Revenue Generated Henderson$0.71$58.5 M Reno$ $0.25 $79.1 M Las Vegas*$ $0.35 $87.3 M North Las Vegas$ $0.45 $95.6 M City RateRate Revenue Generated Difference Henderson$0.71$58.5 M Reno$ $0.25 $79.1 M + $20.6 M Las Vegas*$ $0.35 $87.3 M + $28.8 M North Las Vegas$ $0.45 $95.6 M + $37.1 M

Property Tax Rate Increases Current COH portion of Tax Bill is $ 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 $ $0.25 $20,625,000 $153.13

Possible Recommendation Short TermFY2015Long TermFY Property Tax Increases (Council Imposed ) $0- $2,475,000* (3 cents) Currently No additional Capacity $0 Property Tax Increases (Ballot Question) $0 Property Tax Increases (Ballot Question) $825,000- $16,500,000 (1 cent -20 cents) *Subject to Tax Caps - could be significantly less

Committee Discussion

NEXT MEETING DECEMBER 4 Committee recommendations