Tentative budget features 9 percent spending increase

Wednesday, April 20, 2005 | 8:53 a.m.

Henderson has unveiled a tentative budget that increases spending by 9 percent and adds 86 positions to the city's payroll.

The 2005-2006 proposed budget retains the city's tax rate at 71.08 cents per $100 assessed valuation. This would mark the 16th consecutive year at that level.

Henderson is allowed to have a tax rate as high as 92 cents per $100 assessed valuation. A property tax cap approved by the Nevada Legislature limits the maximum increase homeowners pay to 3 percent.

Prior to the legislative action, the city, in its initial drafts, had budgeted $57.6 million in property tax revenue, up from $53.7 million this year. But the tax caps will result in the city getting $51.1 million -- $500,000 less than expected.

That prompted some last-minute adjustments in its proposed spending plan to deal with the Legislature's property tax relief measure, said Richard Derrick, the city's budget manager.

Without a state cap in place, Henderson would have generated an extra $11 million in property tax revenue under the current tax rate, Derrick said.

The budget maintains existing programs and services with a few additions, Derrick said. Among them:

The City Council will conduct a public hearing on the budget May 17 and will consider approving it the same day.

Spending in the city's general fund, the part of the budget that covers most city services, is slated for $183.6 million. That's 9 percent above the $168.4 million the city projects to spend by June 30, the end of the current budget. A year ago, the general fund budget increased 15.5 percent.

Derrick said a 9 percent growth in spending is typical for the city. That equates to a 3 percent rise in inflation and just under a 6 percent growth in the city's population.

Overall, the city's spending will increase about 20 percent to $429 million. That figure includes the city's capital improvement program, whose figures can vary sharply from year-to-year if any major projects are scheduled. The city estimates it will spend $14 million for a special events plaza between City Hall and the Henderson Convention Center. The city will use an $8 million grant from the Las Vegas Convention & Visitors Authority.

Henderson had 1,987 employees in June 2004, and that number is expected to reach 2,134 by the end of June, according to the budget. Henderson projects to have 2,220 employees by June 2006.

In addition to the new court employees, Henderson will have 14 new jobs in the police department and six new positions in the fire department. The other jobs are spread out among various departments.