A bar graph from Carson City’s Finance Department showing the history of consolidated tax revenue (sales taxes) since 2006. Sales taxes make up 40.1 percent of estimated general fund revenue, according to the city. That revenue grew 4 percent from fiscal year 2023 to fiscal year 2024 (the current year), and the city is conservatively projecting 2 percent growth going into fiscal year 2025.
The Carson City Board of Supervisors will face a packed agenda at Thursday’s meeting as supervisors are set to review the tentative budget for fiscal year 2025 that starts July 1, along with two ballot questions designed to raise money for neighborhood streets and several other items.
The meeting starts at 8:30 a.m. in the board room of the Carson City Community Center, 851 E. William Street. The ballot questions won’t be heard until 5:30 p.m.
“Staff will present the final assumptions used to build the budget and the outlook for the future; there were very few changes from the assumptions outlined at the Feb. 15 meeting of the Board of Supervisors,” reads a staff report. “The only two significant changes are that (1) staff increased the sales tax revenue to 4 percent over final FY 2023 for the re-estimated FY 2024 given sales tax numbers are coming in higher than expected, and (2) health insurance was finalized at a 7.5 percent increase over the prior year, as opposed to the projected 10 percent increase that staff had initially budgeted.”
The 2025 tentative budget has 24 governmental funds with estimated expenditures of approximately $143.7 million and 10 proprietary funds with estimated expenses of approximately $56.9 million.
The General Fund, which covers everything from public safety to public works, is projected to have a $128.3 million budget in the next fiscal year including a beginning fund balance of $18.1 million.
“Total General Fund revenues are projected to increase 4.2% from estimated fiscal year (FY) 2024 to $109.9 million in FY 2025. In addition, the FY 2024 re-estimate was increased to $105.5 million, from the original budgeted $102.1 million, primarily for projected increases in consolidated taxes (sales taxes),” reads the budget introduction.
On the expenditure side: “Total General Fund expenditures are projected to increase by $3.1 million (3.3%) from estimated FY 2024 to $96.1 million in FY 2025. Salaries and benefits comprise 77.4% of total general fund expenses; services and supplies make up the remaining 22.6%. Other uses include a budgeted contingency of $2.7 million, a transfer to the Capital Projects Fund of $8.2 million, and a transfer of $881,002 to the Extraordinary Maintenance Fund.”
The General Fund, as presented, also would include a $16 million ending fund balance.
“The city’s current financial policy is to maintain the ending fund balance at a minimum of 8.3% of annual expenditures with a goal of 16.7% as an operating reserve in the General Fund. The board has expressed an interest in increasing the ending fund balance in order to stabilize the city’s finances in anticipation of the next economic downturn,” according to budget documents. “As identified in the chart above, budgeted ending fund balance for FY 2025 is 16.7% of expenditures. This is a 49.1% increase from the FY 2024 budgeted ending fund balance of 11.2%.”
Supplemental requests from city departments came in at about $3.1 million. These requests are made every budget cycle and this year include the equivalent of 14.4 positions throughout various departments. The city’s internal finance committee, however, only recommended the equivalent of 9.4 positions and a total of $2.4 million in supplemental requests.
In other action:
• Supervisors will review the proposed Southeast Carson City Area Drainage Master Plan.
“Area drainage studies identify and quantify flood risks, collect information from residents through public outreach and propose improvements to reduce flood damage and losses. The plan proposes seven potential projects to mitigate flooding in southeast Carson City, three of which would likely be eligible for grant funding,” according to the agenda.
• Supervisors will convene as the Redevelopment Authority to review the agency’s fiscal year 2025 tentative budget and capital improvement plans.
According to that budget, the Redevelopment Authority has three funds with estimated expenditures of about $3.8 million. Recommended initiatives for next year include ADA improvements to the Bob Boldrick Theater and lobby in the community center, the Appion intersection improvements in south Carson and possible design of the North Carson Complete Streets project.
• At 5:30 p.m., supervisors will reconvene and consider two ballot questions for the November election, one regarding a new .25 percent sales tax and the other for a supplemental governmental services tax (1 cent of $1 for up to 35 percent of vehicle value) — both designed to boost funding for maintenance of local neighborhood streets.
“If the board determines the city should pursue ballot questions on the sales tax, GST or both, the board must also review and approve language for the ballot questions themselves,” according to the agenda.
Facing a $21 million deficit to maintain the current road network, the city estimates the two measures could raise $6.5 million to $7 million annually for local streets.
Drafts of the ballot questions can be found online: https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/2556705/2024_-_Proposed_Questions__NRS_371_377A_-ccm_at__Clean__np_np__Clean_.pdf
After the hearing on the questions themselves, supervisors will consider appointing members to committees to develop arguments for and against the ballot questions.
“The Carson City Clerk-Recorder’s Office has received six applications to serve on the committees,” reads the agenda. “Bob Bartshe is seeking appointment to the committee advocating in favor of the sales tax. Charles Macquarie and Robert Kirkland are seeking appointment to the committee advocating in opposition to the sales tax. Glenn Conant is seeking appointment to the committee advocating in favor of the GST. Dan Mooney and JM Brewster are seeking appointment to the committee opposing the GST.”
Proposed November 2024 Carson City ballot language for question 1: Shall Carson City be authorized to increase its sales and use tax by 0.25%, with the revenue generated from that tax increase to be deposited in a fund dedicated solely to constructing, maintaining and repairing local public roads in Carson City?
Proposed November 2024 Carson City ballot language for question 2: Shall Carson City be authorized to impose a supplemental government services tax of $0.01 on each $1.00 of valuation for vehicles based in Carson City, with the revenue generated from that tax increase to be deposited in a fund dedicated solely to constructing, maintaining and repairing local public roads in Carson City?