Council approves $298 million budget

Jeffrey Libby

Wednesday, May 16, 2001 | 8:58 a.m.

Henderson homeowners will pay in the coming fiscal year about the same property tax rate they have for the past 10 years.

The Henderson City Council approved with minimal discussion a $298 million municipal budget for fiscal year 2002, which begins July 1.

At 71.08 cents per $100 of assessed valuation, the owner of a $100,000 home will pay $249 toward city coffers in fiscal year 2002, raising a total of $35.9 million.

That's up from the $5.1 million the same property tax raised in 1991, when Henderson had an assessed valuation of $1 billion. Today the city has an assessed valuation of $5 billion.

The $35.9 million raised from property taxes will represent 12 percent of the total municipal budget.

In 2001 the city budgeted $315 million to pay for city services.

But with two bills still unresolved in the state Legislature, the budget could change, Richard Derrick, budget manager, said.

Assembly Bill 653, which would change the way the state distributes consolidated sales tax revenues among Henderson, North Las Vegas, Las Vegas and Clark County, is still in committee discussion.

A favorable compromise could result in millions of additional dollars to fund new projects, Derrick said.

The city relies on state sales tax revenues for close to 50 percent of the total budget, Derrick said. Due to a change in the formula in 1997, Henderson officials say, they have been shortchanged millions of dollars.

Assembly Bill 457, which would take motor vehicle tax revenues from municipalities and redistribute them to the state, also remains in discussion, City Manager Phil Speight said.

If that bill is passed, the city could lose significant funds, Derrick said.

Yet another potential influence on the budget: the public safety tax initiative. If voters approve the tax hike June 5, that could change the budget.

The initiative would tax the owner of a $100,000 home about $84 extra annually for the next 30 years. It would raise a projected $850 million to pay the salaries of 237 new public safety officers, including 166 police officers and 30 paramedic-trained firefighters.

The $298 million budget approved Tuesday includes $58.6 million for public safety, nearly half of the $120 million in the general fund.

Of 48 new hires recommended for the city, police are scheduled to add 11 as new officers.