Las Vegas Sun

July 31, 2014

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With revenues falling, city of Henderson likely to see layoffs

City says layoffs, program cuts probable early next year

In Henderson, consolidated tax revenues continue to be lower than projected, and the city is likely to implement layoffs and program cuts early next year.

Consolidated tax revenue — sales and other taxes allotted to Henderson by the state — for August were about 23 percent lower than those reported in August 2008. It was the largest month-over-month decrease on record.

In August 2008, Henderson was allotted about $7.2 million in consolidated tax revenue. This year, it received about $5.5 million.

Consolidated taxes make up about 40 percent of the city’s revenue, said Financial Director Steve Hanson. The decrease is significantly more than the 15 percent decline Henderson officials were expecting.

“Every month it comes in materially less than what we’ve projected,” Hanson said. “We’ve gotta be cutting expenses.”

The next round of budget cuts, which should begin in early 2010, could include layoffs and program cuts.

The city already has a three-tier plan to make budget cuts.

The first tier, approved by the council in August, did not involve program or personnel cuts.

The tiered plan is expected to save the city $8.9 million a year for the next five years. But no specific dates have been sent for the second and third round of cuts, as officials wait for new tax revenues to be reported, said Assistant Financial Director Richard Derrick.

In July, consolidated tax revenue fell about 19 percent from the same month the previous year. Consolidated tax revenue is typically distributed on a two-month delay.

The department expects tax revenue declines to level off in February.

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