Transcript Slide 1

Using Data to Drive
Financial Decisions in
Washoe County
Dave Childs, ICMA-CM
Assistant County Manager
Washoe County, Nevada
Key Points of this
Presentation
•
•
•
•
Description of Washoe County
Financial Issues Facing the County
What the Data Told Us
Charting Our Course (COC) and Tiered
Budget Reductions – How We Responded
• Changes for Next Year
• Building and Safety – Data Driven Cuts
About Washoe County
• Includes the Cities of Reno and Sparks
and a portion of the Lake Tahoe Basin
(including Incline Village and Crystal Bay)
• 420,000 population (110,000 located in the
unincorporated area)
• 6300 square miles
• 3100 County employees in 2006
• General Fund about $330 million
The Fiscal Challenge
• Sales tax revenues have declined in 28 of the
last 29 months (19.2% drop in June 2009)
• Unemployment at 12.2%
• Soaring foreclosure rates (59% of the 4000
home listings are classified as “distressed”)
• Plummeting home prices (the median price of a
new home in Feb 2006 was $423,300 and by
July 2009 it was $242,000)
• Property tax reductions will follow value
reductions (with revenue recovery further
impacted by a 3% cap in property tax growth)
Sales Tax Revenues
FY09-10 Budget Scenarios
Potential General Fund Budget Reductions Each Fiscal Year
Based on Economic Cases
(in millions $$)
$FY 2008/09
FY 2009/10
FY 2010/11
$(5.0)
$(9.8) (3.0% Reduction)
$(10.0)
$(10.7) (3.3% Reduction)
$(15.0)
$(15.6) (5.1% Reduction)
$(18.5)
$(16.1)
(5.6% Reduction)
$(20.0)
(5.6% Reduction)
$(25.0)
$(30.0)
$(31.5)
(9.5% Reduction)
$(35.0)
$(40.0)
$(45.0)
$(47.1) (14.2% Reduction)
$(50.0)
Optimistic Case
Base Case
Pessimistic Case
The Structural Gap
$400
Current Fiscal Year
(if no cuts are done)
$375
Rev
FY 09-10 -5%
FY 10-11 -2%
$350
$325
$300
$275
Expenses
FY
20
10
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11
P
Pr
10
20
09
FY
Revenues
ro
jec
ti o
n
oj
ec
ti o
n
ET
C
09
20
08
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09
20
08
FY
FY
Bu
dg
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08
20
07
FY
07
20
06
FY
06
20
05
FY
05
20
04
FY
20
03
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04
$250
FY
Millions
Structural Gap: Current Revenues Compared to Current Expenses
Exp
3%
3%
“Charting Our Course”
• 2004-2006 Exercise to Calibrate the
Budget Decision Making Process
• Only Moderately Successful…BUT…
• Set the Framework for Creating a Process
of Tiered Budget Cuts in 2008-09 and
2009-10
• Allowed for Departmental Buy-in on the
Budget Reduction Process
FY08-09 Mid-Year
Tiered Reductions
• Public Safety – 2.5%
• Courts and Social Services – 5%
• General Government (internal services,
planning, public works, etc.) - 10%
• Parks and Libraries – 15%
• (Resulted in about a $20 million
expenditure reduction)
FY09-10 Tiered
Reductions
• Public Safety – 6%
• Courts and Social Services – 12%
• General Government (internal services,
planning, public works, etc.) - 28%
• Parks and Libraries – 36% (cumulative
cuts over two years were about 53%)
• Led to Re-evaluation of Missions (e.g.
“clean, safe, and open”)
Cutting the Budget
• Huge budget gap ($47 million for FY09-10)
• Compounded by millions in State Legislative
takeaways in July 2009
• Employee wage freezes, and most bargaining
units take a 2.5% pay cut for most of calendar
year 2009
• Reduction of 500 employees over past 24
months (250 by position freezes, 150 by
retirement incentives, 100 by layoffs)
• Service reductions (programs and facilities)
Some Successful Steps
• Achieved Overall Budget Target (with some
departmental adjustments)
• Continuous Consistent Communication to Public,
Staff and Board is Critical (website Q&A, town
hall meetings with staff, e-mail updates)
• Debriefing Survey to Department and Division
Heads (performance measurement)
• Have Initiated Workforce Recovery Task Force in
Partnership with Employee Bargaining Units
Changes for Next Year?
• The Dangers of Crippling Key Programs
• Disproportionate Impacts…Recalibrating?
• Maintaining Buy-In of Department Heads
and Elected Officials (swimming pools
library hours, and public safety)
• Citizen Acceptance
• Bargaining Unit Relationships
• Sustainability Concerns
Building Permit Trends
in the 1990’s
Permits Issued
1,600
1,400
1,200
1,000
Residential
800
Com Add
600
Com New
400
200
1993
1994
1995
1996
1997
1998
1999
2000
2001
…and then the crash.
Permits Issued
1,400
1,200
1,000
Residential
800
Com Add
600
Com New
400
200
2002
2003
2004
2005
2006
2007
2008
2009
2010
Managing Costs By the Numbers
Permit Revenues, Expenditures, and Net Assets
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
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Revenues
Expenses
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20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
Net Assets
Building Department – Analyzing
Workload (current and projected)
Permit Workflow
7,000
6,000
Applications
5,000
Permits Issued
4,000
3,000
Permits
Finalized
2,000
1,000
2002
2003
2004
2005
2006
2007
2008
2009
2010