Despite low tax revenue, Boulder City doesn’t need budget cuts

Wednesday, Oct. 15, 2008 | midnight

While Henderson and Las Vegas have announced budget cuts because of lower-than-projected revenue, Boulder City doesn't expect to need to slash spending this fiscal year, City Manager Vicki Mayes said.

This year's $24 million budget, approved May 20, already estimated $100,000 less in sales tax than the city received last year, so the city is "currently on track to meet budget projections," Mayes said.

So far this quarter, the city has received $2.1 million in tax consolidated sales tax revenue, about 24 percent of the $8.7 million the city expected for the year, Mayes said. The consolidated sales tax revenue is the city's share of sales taxes collected by the state.

In fiscal 2008, the city budgeted $8.8 million in consolidated tax and received just under $8.5 million of that, Mayes said, so she lowered the estimate for this year.

Timothy Inch, finance director, said he is "closely monitoring" the fiscal situation to determine whether adjustments will be needed, but doesn't expect city operations to change as they are now.

Henderson is cutting 10 percent across the board to make up for a $28.2 million tax revenue shortcoming, and Las Vegas is reviewing city operations to save $30 million. Both have instituted hiring freezes.

Mayes said the second tax payment at the beginning of next year will tell whether the city's projections were correct for the year.

"I believe the most significant milestone will be when the city receives the second quarter consolidated tax payment in January, because it will be a huge indicator as to whether or not the consolidated tax revenues have leveled or whether they will continue to decline," she said in an e-mail.

Mayes also said new lease revenue from solar energy plants in the Eldorado Valley signed this year weren't included in the budget and "could help fill some of the gaps should the consolidated tax continue to decline."

Cassie Tomlin can be reached at 948-2073 or cassie.tomlin@hbcpub.com.