March 25, 2020 Agenda         COVID-19 Impact to Revenues Recession Projections at this Point CTAX Current Year Fiscal Impact Debt Revenue Sources Impacted Immediate Financial Actions FY20/21 Budget Development Major Revenue Scenarios Next Steps COVID-19 Impact to Revenues  CTAX will be immediately impacted     Only speculations at this point as to full depth and duration of COVID19 and the recession as this is truly unprecedented Impact won’t be known until we see the distributions and some sales data (late May will be the first available data) Property Tax proforma data available March 25  Unsecured taxes could go down  Dramatic impact to new development Room Tax, Business Licenses, Building Fees, Recreation Programs, dedicated property tax for Street fund and other revenue sources Recession Projections at this Point S&P projections for the recession GOLDMAN SACHS is predicting -6% growth in Q1, -24% in Q2, +12% in Q3 and +10% in Q4 JP MORGAN is projecting a 14% annualized drop in Q2 CTAX Current Fiscal Year Impact 1% 1% CTAX Components: 7% 1) Cigarette Tax (1%) 2) Liquor Tax (1%) 3) Government Services Tax (GST) (11%) 11% 18% 4) Real Property Transfer Tax (RPTT) (7%) 5) Basic City County Relief Tax (BCCRT) (18%) 6) Supplemental City County Relief Tax (SCCRT) (62%) SCCRT BCCRT 62% GST RPTT Cigarette Tax Liquor Tax CTAX Current Fiscal Year Impact (cont) General Fund Revenue Sources Charges fer Services 6% Fees, Licenses 8! Permits 11% Miscellanecrus &Transfers 3% Fines and Ferfeits 1% mental 4% I HENMW I CTAX Current Fiscal Year Impact (cont) Debt Service 1% Capital Projects 1% Capital Outlay 1% Centingeney/ Stabilization 1% General Fund Uses 334-INFU I I CTAX Current Fiscal Year Impact (cont.)   Six months of allocations have been received (July – December) January and February allocations will be received at the end of March and April   No impact and expected 3.5% above budget trend based on prior year allocations Based on discussions with other local agencies a possible scenario could be:  Decrease of 25% in March, 50% in April, 35% in May, 25% in June CTAX Current Fiscal Year Impact (cont.) FY20 CTAX projection IF:  January and February allocations 3.5% above budget  Decrease of 25% in March, 50% in April, 35% in May, 25% in June Month July August September October November December January February March April May June TOTAL Change (%) FY18 Actual FY19 Actual 5,222,477 5,625,331 5,693,438 5,849,582 5,602,049 5,848,956 5,301,646 5,619,777 5,163,836 5,516,538 6,279,931 6,586,851 4,898,991 5,324,521 4,707,783 4,653,281 5,532,621 5,693,880 5,335,994 5,746,210 5,633,361 5,975,088 6,308,954 6,347,848 65,681,079 68,787,863 9.0% 4.7% FY20 Budget 5,899,139 6,218,091 6,232,597 5,840,065 5,795,777 7,061,039 5,414,606 5,131,972 6,233,564 5,743,026 6,227,296 7,070,863 72,868,035 5.9% FY20 6,138,752 6,287,784 6,560,522 6,127,420 6,082,002 7,380,580 5,604,117 5,311,591 4,675,173 2,871,513 4,047,742 5,303,148 66,390,343 -8.9% Gain/(Loss) Gain/(Loss) over Budget over Budget ($) (%) 239,613 4.1% 69,693 1.1% 327,925 5.3% 287,354 4.9% 286,225 4.9% 319,540 4.5% 189,511 3.5% 179,619 3.5% (1,558,391) -25.0% (2,871,513) -50.0% (2,179,553) -35.0% (1,767,716) -25.0% (6,477,692) -8.9% Debt Revenue Sources Impacted Debt Primary Revenue Source Description 2006 Room Tax Revenue Refunding Bonds Room taxes collected in downtown district related to the ReTRAC corridor. Refund the City's Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan for ReTrac. 2005C Capital Improvement Refunding Room tax revenues – 1%; CTAX is the secondary source. Finance the construction of the downtown ballroom facility and other ancillary facilities, including Events Center & NBS. 2013A Improvement Room tax revenues -- 1%; CTAX is the Refunding Bonds secondary source. Refund 2002 bonds used for the acquisition of NBS and the construction of the Downtown Events Center. Room tax revenues -- 1%; CTAX is the secondary source. Partially refund the Series 2002 Capital Improvement Revenue Bonds for Events Center, Ballroom & NBS 2019A-1 & 2019A-2 Capital Improvement Refunding Bonds Immediate Financial Actions   Strict Hiring Freeze for remainder of FY20  Vacant positions to be held open  58 open positions  Estimated $6 Million in annual Salary and Benefits  41 non-safety positions  $4 Million Annual Salary and Benefits  17 safety positions (police officers & firefighters)  $2 Million Annual Salary and Benefits Review of Fire SAFER Grant funding Immediate Financial Actions (cont.)   Departments have been directed to slow down on purchases and focus on core services only Stabilization Fund  $2.9 Million Balance  Per NRS: Funds can be used for only two reasons A) when revenues fall short of expectations; or B) to pay for expenses incurred to mitigate a natural disaster  In the case of this disaster, both apply as reasons that will allow us to use the resources in the fund FY 20/21 Budget Development      Budget was developed with available data through January/February Recommend keeping revenue projections “as is” for now and no additional items (flat budget) Allows authorization and spending flexibility to manage this time period Continue to monitor daily developments and collaborate with other local and state agencies Come back to Council as more information and data is available so plans can be adjusted Next Steps  Manage as events unfold and data becomes available  Continue to monitor daily developments and collaborate with other local and state agencies  Analyze impact of federal aid and stimulus plans  Evaluate short and long term cost savings plans  Labor negotiations with IAFF and Local #39 General Fund Sources General Fund Sources Beginning Fund Balance FY 19/20 Original Estmate $32,520,451 FY 19/20 % Re-Estimated Change $32,520,451 Property Taxes Fees - Licenses & Permits CTAX Fines & Forfeits Charges for Services Intergovernmental Revenue Misc/ Transfers/DMO Total Revenue 57,083,810 49,817,765 75,494,299 3,307,238 14,296,057 10,641,323 8,234,981 $218,875,473 53,555,702 46,610,766 63,610,071 2,757,698 13,151,612 11,763,851 7,941,815 $199,391,515 -6% -6% -16% -17% -8% 11% -4% -9% Total Sources $251,395,924 $231,911,966 -8% General Fund Sources FY19/20 Combined Ad Valorem Scenar ios rYl 9/20 CTAX Scenarios r..ooo,o::o '.16,000,000 i A,!X!O,OIX> '.12,.0C-0,000 ~.O(X>CX:O '.10,000,000 1,l'lfU()"O 6.000,000 2.0'J0,0::0 1.000,000 1,1.11110..() J ,i)!X>,O:IU Jul ~ Urto~r l)AUil'Y 1.::br.i.;rv r.t;ir<.h April MU\' I Jn~ '.061,0S.9 ;.111.~o: !>,l'SJ ,9~ b 2~3,0,f..t 0,,l'l.~b b,a1,m /~.''J,'e&:! - '7 ,3.."°,5'10 i,~38,66'5 S,_~11.,s.ti 3,1'1S.iS:' 1,9G(),.\.38 l,?'IJ, "3 '!,f&l,7.~ - , . ' ! ' '}OIQ,,o';U l utg l <:Hll 7,lM,SS'O i,~38,565 S,U11~36 3,MS.:"~'.' 1,~33~ l,m,qq1 1,786,j•H - 6,1;;.:s,752 G,2S7,7S4 5,Sei:,;i2 &,12.i'/·20 6.0t2.0C2 1,J80,5&:> s,;3a,E-c>:i S,,:M4 ~Jli J,2.'15.7~? 2,900,J.)8 •l,2.15,2~0 - -rv 2019/20 S;cr. un'r'I Al1fL:11 ~EPt:fn'1ber 'iaotrri>r.r lkccrnbl't o,.:;s 11: f..111:.g.i.ll.. J Fl JCH/Jt.1 ) ,!991:!9 b.!l8/Jl9l 6.232,39/ ~.&·10~ - F"' Z.SSO 12.72'1,3'1-I 128,8~ 8,025,252 100,171 lSi',007 1,c-0;,s% 1 :~..~.,"'l. !Ji )') 4,0 ')fjlhb 1 i ,4:.'b,IH'.~ 4hh,4/'.~ a4/,Hll} i :l,114,"'la4 4'./i'!,H'~-1 X,ffi.~,·i '"l:I ) 4:~.10 1 :~"'lh,44'.-! 1,'"i(l-1,i'!44 1 :~,. .. ; .:l,0 11/,i,(:(: l 'i,4:,1(:,!!0 .:lf:l:,.t!.~ .24/,IMI} i './,O.:l,'1"1.t .t'./~,M~ lo<,OJ!.;; •,:1 / 1,'•'•1 :n1,,.t.:i:1 1,HI O,(: 'i:~ 1,JM)l.J Room Tax Sources Room Tax Sources Beginning Fund Balance FY 19/20 Original Estmate $2,098,947 FY 19/20 % Re-Estimated Change $2,098,947 Room Tax Misc Total Revenue 2,940,000 35,700 $2,975,700 2,164,746 26,503 $2,191,249 -26% -26% -26% Total Sources $5,074,647 $4,290,196 -15% Street Fund Sources Street Fund Sources Beginning Fund Balance FY 19/20 Original Estmate $26,176,864 FY 19/20 % Re-Estimated Change $23,176,864 Property Taxes Motor Vehicle Fuel Tax Charges for Services Intergovernmental Revenue Misc Total Revenue 17,956,446 7,050,000 9,105 19,440 496,954 $25,531,945 16,879,059 5,992,500 9,105 19,440 496,954 $23,397,058 -6% -15% 0% 0% 0% -8% Total Sources $51,708,809 $46,573,922 -10% General Fund Impact GENERAL FUND SUMMARY FY 19/20 Original Estmate FY 19/20 Re-Estimated Beginning Fund Balance $32,520,451 $32,520,451 Revenue Totals $218,875,473 $199,391,515 Expenditure Totals Net Change Unassigned Ending Fund Balance $221,999,609 $221,999,609 ($3,124,136) ($22,608,094) $26,696,315 12.80% $7,212,357 3.47% Note: 8.3% ending fund balance equals $15,725,825 Street Fund Impact STREET FUND SUMMARY Beginning Fund Balance Revenue Totals Expenditure Totals Net Change Unassigned Ending Fund Balance Defict/Projected Revenue Loss FY 19/20 FY 19/20 Original Estmate Re-Estimated $26,176,864 $28,999,347 $39,073,463 $26,176,864 $26,864,460 $39,073,463 ($10,074,116) ($12,209,003) $16,102,748 $13,967,861 ($2,134,887) Room Tax Fund Impact ROOM TAX FUND SUMMARY Beginning Fund Balance Revenue Totals Expenditure Totals Net Change Unassigned Ending Fund Balance Defict/Projected Revenue Loss FY 19/20 FY 19/20 Original Estmate Re-Estimated $2,170,487 $2,975,700 $2,170,487 $2,191,249 $4,604,137 $4,604,137 ($1,628,437) ($2,412,888) $542,050 ($242,401) ($242,401) Other Funds - Impacts PARK DISTRICTS • FUNDING SOURCE Residential Construction Tax (RCT) collected at time building permits are received. • ELIGIBLE USES Funds are restricted to new neighborhood parks/facilities within district and not for maintenance. PARK DISTRICT 1 $2,071,035 PARK DISTRICT 2 $1,598,773 PARK DISTRICT 3 $573,127 PARK DISTRICT 4 $6,351,438 PARK DISTRICT 5 $405,379 • No Anticipated change at this time SEWER FUNDS • FUNDING SOURCE Sewer user and connection fees • ELIGIBLE USES Restricted to sewer capital projects. • No Anticipated change at this time – will be monitoring closely BUILDING FUND • FUNDING SOURCE Charges for services from construction related activities • Unknown at this time – CD staff currently working on potential impacts to fund