$11 million gap in budget will be eliminated

Greg Harman

Tuesday, May 16, 2000 | 11:49 a.m.

The city of Henderson is expected to overspend this year's budget by about $11 million as it tries to keep up with its 7 percent growth.

But the projected 2001 budget, which begins July 1, 2000, could narrow that gap to $6 million.

Henderson City Council members are expected to approve the fiscal year 2000-2001 budget at its regular council meeting tonight.

According to the proposed 2001 budget, the city's general fund expenditures are projected to reach $120.2 million as its revenues stall at $114.7 million.

The $6 million difference will be covered by the city's ending fund balance, a safety "cushion" that shelters the city from unanticipated costs, said Richard Derrick, Henderson's budget manager.

"We kind of have that money working for us," Derrick said.

The ending fund balance is expected to fall to $10.7 million in fiscal 2001, almost 4 percentage points higher than the 5 percent of the total general fund required by city code.

The city's general fund revenues climbed from $101 million in fiscal year 1999 to $107 million in fiscal 2000. Its expenditures rose from $98 million to $117 million during the same period.

City taxes may also be rising by 1 percentage point.

The proposed city tax rate is 71.08 cents per $100 property valuation, up from 70.4 cents in fiscal 2000 and 70.81 cents in fiscal 1999.

For a home valued at $100,000 the proposed city tax would equal a payment of $248 per year.

The number of city employees has climbed from 1,375 in 1999 to an expected 1,554 next year.