Agendas & Minutes


May 19, 2005

FINAL BUDGET HEARING
BOB RUUD COMMUNITY CENTER
150 NORTH HIGHWAY 160
THURSDAY – 7:00 P.M.
MAY 19, 2005

 


Agenda

NOTE: There may be a quorum of Nye County Commissioners or Pahrump Advisory Board members present at this meeting.


1.    Call to order.

2.    Announcements.

3.    Public Comment.  (Action may not be taken on matters considered during this period until specifically included on an agenda as an action item (NRS 241.020(2)(C)(3).

4    Discussion, action and decision regarding fiscal year 2005-2006 Final Town of Pahrump and Pahrump Swimming Pool District Budgets.   Town Board

 5.    Adjournment.


POSTED IN THE PAHRUMP TOWN OFFICE, COMMUNITY CENTER, COUNTY COMPLEX AND FLOYD’S ACE HARDWARE.

SPECIAL NOTE: Any member of the public who is disabled and requires accommodations or assistance at this meeting is requested to notify the Pahrump Town Office in writing or call 775 727 5107, prior to the meeting.  Assisted listening devices are available at Town Board meetings upon request.

 


Minutes

PRESENT:                        ABSENT:
Richard Billman                    Ed Bishop
Laurayne Murray    
Paul Willis

CALL TO ORDER

Chairman Richard Billman called the meeting to order and led in the Pledge of Allegiance.

ANNOUNCEMENTS

There was no public comment at this time.

PUBLIC COMMENT

Chairman: Item #3 Public Comment. Action may not be taken on matters considered during this period until specially included on the agenda as an action item.  Is there any public comment?

Mike McInerny: My name is Mike McInerny.  I want to bring up my annual complaint against the Town Board for always raising the tax rate to the maximum allowed by the Department of Revenue Services.  Although the rates are based on information I got from the Town Office this afternoon it only goes up by about 8 tenths of 1 percent.  That would gain for the Town $13,000.  Do you really need that much money, or are you just raising it to feel powerful?  I think the Fire Department is still spending too much money.  

Chairman: Any other public comment?  Ok moving on to item # 4 discussion, action and decision regarding the fiscal year 2005-2006 final Town of Pahrump and Pahrump Swimming Pool District budgets.   

DISCUSSION, ACTION AND DECISION REGARDING FISCAL YEAR 2005-2006 FINAL TOWN OF PAHRUMP AND PAHRUMP SWIMMING POOL DISTRICT BUDGETS

Chairman:  Mr. Richards are you taking this?

Mr. Richards:  Well Mr. Sullivan and I will tag team on this I think.  We have for you tonight a summary of the funds that we thought might suffice for the public hearing but we did include the detail for each of the funds just as you had for the work session and if you have any questions
Pahrump Town Board Meeting
May 19, 2005

about any of the line items we will be happy to do that, but we thought it might be a bit redundant to go though this line item by line item.  As I mentioned the Pistons and the Pacers are playing so…. The first page shows the summary of the general fund, the special revenue fund and the capital funds as well as the enterprise fund and it has the revenues, sources of funds, and also the uses of each, in each fund and as I said these are the summaries.  Maybe we will let Mr. Sullivan go through the highlights on these since he criticized me so greatly for taking my time and going though each of the summaries and the line items at the last meeting, so it’s his turn to be boring.  

Mr. Sullivan:  I just wanted to point out there’s…when we met in March we adopted the presentation that time with about a handful of amendments inserting the place savers, the colon, the merit, changing the fuel for the fire and ambulance service and making some minor adjustments regarding the allocation of the capital budgets.  We have not made any change of the total of the capital budgets, except one and inserted the other amendments requested by the board.  The difficulty we have been struggling with is because the AB 489 legislation posted after our meeting and as late as about 12 o’clock today we had a series of numbers regarding the new property tax amount we would be allowed.  Department of Taxation struggling with logistically trying to figure out how this is going to work, some may have read in the newspaper owner occupied residential is at a 3 percent gap.  Non-owner occupied commercial, industrial, and just about everybody else is at an 8 percent gap, with the exception of multi family which could show that they meet certain affordability standards.  Since no one has those break outs you can obviously understand how difficult it is for them to come up with a number, and they have given us as I said two or three.  So late today, I tried to amend these for this evening and the sheet that’s behind here we can visit.  It is actually at the back of the packet, the small packet.  It had been as high as about $110,000 difference for us but late today they changed that amount.  So in order to incorporate that change and keep an ending fund balance of some merit I elected to reduce the general fund contribution from general fund to the capital fund which originally was $400,000 and made it $200,000.  Now, although we could balance within this year if we go through these sheets on a five year projection, we start to erode the ending fund balance if we don’t start to take steps now to give ourselves a little soft landing in those out years.  We anticipate that the amount may go lower depending on what the assessor discovers on owner occupied we also know this is a two year cap minimum and we also suspect that we will never regain any of the money or a capacity in the future years once we have gotten passed the two years.  Now, we did have a pretty significant addition to our assessed value this year almost over $87,000,000 to the total to the town.  We are allowed to capture the maximum tax rate on new construction for the first year.  After that it goes into the base.  So I have had a few vigorous conversations with Warner because originally they wanted us it appeared to roll back our property tax to meet the new maximum tax revenue they wanted and that didn’t seem equitable.  I’m not sure if it was anything that I had said but late today they released a new form that appears to allows us to levy the full allowable rate and then the assessor will apply what I call a credit, they call an abatement, on the individual tax bills so that they don’t exceed the 3 percent and the 8 percent.  So with new forms it appears, only a couple hours old that will maintain this tax levy which in the packet, the small packet we are asking you to approve so we can send it to
Pahrump Town Board Meeting
May 19, 2005

Carson City along with your resolution this evening and then we will sort of wait for the second shoe to fall to see if in fact that’s how they want to handle this, it appears that way, it appears that way.  So on the front page…here it is… the summary of all of our funds, we have over 21 of them and we will be adding a few more in the year if we get impact fees.  We would like to reduce this group, there has been a history of maintaining some capital funds that are really, could easily be absorbed inside the general fund which they are and keep the accounting still straight.  So that’s kind of a short summary as I can we can discuss the ambulance fund, it had no changes except for an addition of about $10,000 to the fuel account.  If you like we can move on.  Go ahead and answer any questions for anybody that’s here, that may not have been at the earlier meetings.  The Pool took a small hit, too, in this AB 489.

Chairman:  What’s the net of that, I mean your best guess?

Mr. Sullivan: Right now it looks like it is going to be, what did I have on that back page, am I looking at too many numbers on page eleven I tried to give a little summary of where we started and where we ended up so we picked up a $144,000 and originally right above there it looked like we should have had $212,000 and in the middle here that’s not shown on this page we actually only lost $68,000 when it was all said and done.  We…in between there was another step where we lost more money and then they withdrew that amount so now from what we would have collected based on the first number they gave us in March to now, it looks like we will drop about $68,000 but again that probably isn’t going to be the final number.  It’s pretty hard to tell, they are sending out those post cards in most communities I don’t think they have sent them here yet. Clark County, Henderson, some of the larger metropolitan assessor offices have that capacity to jump right in.  But the ripple effect of not growing if you can look, I don’t have it on this chart, but you can see we were growing substantially in our assessed value and if that continued and we captured that tax rate in there, but now it’s going to flatten out, it’s going to flatten out.  Is that the kind of answer you were looking for?  

Chairman: Yeah.

Mr. Sullivan: Okay.  

Chairman: It’s still a net increase.

Mr. Sullivan:  It’s still a net increase from the prior year.

Chairman: Because of the….

Mr. Sullivan: Right, because of the growth.  Move on to the special revenue on page two if you’d like.  Clearly nominal changes here.  The only fund here that has personnel that would reflect the tweak for merit and COLA was the business license fund.  All the other funds stayed the same except for the Pool. I’m sorry, the Pool did take a reduction in their property tax amount…not significant but they are a strong fund and have a balance.  It didn’t create any need to change any
Pahrump Town Board Meeting
May 19, 2005

of the expenditure levels.  We’re looking at about $87,000 there on column 2, line 17 that’s the total expenditures.  We didn’t make any change there because of a drop of about $6,000 in the Pool.

Mrs. Murray:  So you just took that out of the end of the of year balance, is that what you are saying?

Mr. Sullivan: Right. Just reduced that slightly.  Page 3 is the summary of the capital funds and this one had that change I remarked about earlier, 1st column there, line 8 is now $200,000 instead of $400,000. I made a matching reduction in the capital outlay expenditure projection and kind of…we can discuss it another time when we get to the back. I simply took some off the water account which was about $500,000 allocation and I forget the other one that I took off another $100,000, both of which had pretty robust allocations and again that the pool of money that each of those allocations all depends on other factors occurring.  If there’s not any questions on 3 I can move on to the general fund, which is the one that really runs the operations here, and I have tried to highlight in bold where some changes occurred, so in the 2nd column over there is property tax.. Line 3 I noted the change of the tax amount.  We increased line 4 funds and fees because we…since our March meeting on the budget, have implemented the fire inspection program and although I think this, I added about $70,000 it’s still too new to tell what that volume is going to be.  Our ability to keep up with it, the level of potential that Scott was talking about today is like 2,000 business licenses, safety checks, and the amount of new licenses that might be added as well as checks on new construction and the like commercial.  It’s been pretty busy already I know so, so if this number’s low as we get into the New Year we’ll augment for budgetary purposes.

Mrs. Murray:  Would the, would any funds associated with the business license go under general fund or under business license fund?

Mr. Sullivan:  I think there are actually two fund structures.  One, if you call it a Fund Re-inspection costs, and the business license there is a fund if you are not licensed in time, expirations, delays, that goes into the business license account.

Mrs. Murray: Okay, so that’s the difference.

Mr. Sullivan:  These will…anything related to the inspection will go here.  The other changes in summary there for lines 9 and 10 are reflecting those changes we talked about for fuel, personnel costs, and the like.  Then on line 15 there highlighted is the $200,000 amount that’s changed from the $400,000 that we had originally proposed.  Any questions, be happy to add it.  Flip over to page five there.  This is a summary of the operating departments and the transfers, I wasn’t able to get to the highlighting here as I had in the earlier pages, line 8 is the $200,000 difference there and the break out of the uses of funds in the operating departments administration, building and grounds, fire and those are the three that have personnel costs to them.  Any questions, and if not we will move on to the second page.  This was just a summary to show where we were last
Pahrump Town Board Meeting
May 19, 2005

year, what our adopted budget, and what we are proposing now with some variances and some percentages for those that like that.  Again on line 12 over there in the far right column is substantial 23% reduction in total transfers that’s because we’ve, had $200,000 that we usually bring over there.  Overall about a 1.6.  Page 7 is a, is something that we normally haven’t done before, give us a little longer view of our sustainability and this will become more and more important as we have to deal with the tax reductions in the cap I think and in higher costs to maintain the service levels.  Right now this five year projection if you look down, I guess about line 21 I don’t have a number there end fund balance.  You can see it’s a little tough to maintain it, and the only way we are maintaining it is on lines 13 and 15, opps 13 and 14 those eggs in there those zeros bolded zeros in there it appears that after next year in order to maintain ending fund balance and I’m not sure this is going to pass the mustard with the State, when I look at it now, 3 % is normally the needed level so were, we may need to make some adjustment here.  I think the $60,000 in contingency will be counted towards it…that’s the reason I left it at a 104 right now.  In ‘07 we’ll see where we end up.  You can see we have to discontinue transfers to the ambulance fund and the capital fund if we kind of see this assumptions here it stays that way until about 2009.  Now these numbers should reflect what I am anticipating is a 1,000 new units per year in growth, but each of those only contributes about $160 some odd dollars of new incremental property tax force based on about a $200,000 average home price.  We might be a little low, depending when the construction starts to flow, but you only get 35% of that as taxable value.  So I have tried to build in here some growth for new units at the, basically what the County has been talking about at their meetings.  Everybody is predicting those are low, so we’ll see.  

Mrs. Murray: And Mike, there’s nothing in here to do with impact fees coming in here for capital, right?

Mr. Sullivan:  No, but you can see we just about wiped out our capital.  That will create another fund and another line in here once we kind of can get our arms around it, looks like from the meeting yesterday Laurayne, if your read was the same as mine, probably earliest the Commissioners will hear this will probably be the 1st of July meeting, probably the end of July since it will be in Pahrump, and that’s only if they can embrace the final numbers.  I imagine there will be some wrap up so we might see a half a year’s worth here, maybe less.

Mrs. Murray: But hopefully, maybe by 2007 where we have these groups.

Mr. Sullivan:  We could, we could but it will be a separate fund because those moneys do have to be segregated so they won’t flow, they will be directly, we will have to look at that, we can put it in the general fund, but like other capital funds we just have to be keeping a close accounting for it.

Mrs. Murray: But since they will be capital expenditure limited only they would be supplementing that capital fund where other wise we would have to wait for some general funds.

Pahrump Town Board Meeting
May 19, 2005

Mr. Sullivan: Right, but if you kind of look at ‘07 and ’08, there were not going to put it, we don’t have any capital put in and one of the other things and we will be able to discuss it at a later time when the impact fees become closer to reality.  The impact fees create a situation where they don’t pay a hundred percent of what that capital item will be.  The county’s level their talking 50/50 so we have to come up with some capital to match some of those improvements if we are going to get them online at the appropriate time.  Now Dave has had conversations as I’ve had with Julie, there methodology for the fire and for the park seems to indicate that those fees could be almost a hundred percent of what we need, but it does not…

Mrs. Murray:  A hundred percent of maintaining the current level of service.

Mr. Sullivan:  Level of service, that’s a good point and it does not include the operation so even if they did pay for a new park for instances of 30 acres, then we still have to staff it.  Good points, we are going to kind of close our eyes not look too far down this line but it is something we have to ponder I think..

Mrs. Murray:  Yeah, hence Mike was a bull dog yesterday telling them to move the meeting along.  Why do we need another meeting, this is it.

Mr. Sullivan:  That brings us to the resolution on page 8 and the two pages that follow right behind it are the cover pages we would send to the State Department of Taxation along with their specialized forms that are kind of harder than my sheets sometimes to read and don’t kind of tell the whole story that we think, we try to tell in the back 50 pages in the big packet where projects are kind of outlined and the, on the capital at least and many of the operating departments as well.  I’ll be glad to answer any questions as Dave said I would be glad to go through any of the individual funds that are kind of expanded upon and the detail in the 50 pages.  

Chairman:  Well let’s see we may as well get a motion on the…on the table on the resolution and then we can discuss the….

Mr. Willis:  I’ll make a motion to approve resolution # 2005-22.

Mrs. Murray:  Second.

Chairman:  It’s moved and seconded.  Discussion?

Mr. Willis: I do have one question, on Dan Mc Arthur’s report he suggested that we have a rainy day fund.  We don’t have room for a rainy day fund or is there one included in here or is it going to be pretty dry?  

Mr. Sullivan:  There is no rainy day fund, other then the ending fund balance and the contingency of about $60,000 that we typically put in there as place saver.

Pahrump Town Board Meeting
May 19, 2005

Mr. Willis:  What percentage was it that he suggested?  Do you remember? 5%, 10%, what was it?  

Mr. Richards:  There is a limit of I think 10% of your expenses each year that you can move to the rainy day fund.  

Mr. Sullivan:  That’s a moot point, because we just don’t have it.  

Mr. Willis:  I just wanted to…I hope we don’t have much rain.

Chairman:  Any questions or comments from the public?  Michael do you have any?  Okay.  Any other comments from staff?  

Mike McInerny:  In years past we always published a quarterly update of the budget, how much we had spent that month.  The library district and the school district still post a quarterly but the Town of Pahrump no longer does.  Is there a reason for that?

Mr. Sullivan:  There was a change the school district is still required to publish that, is that what you are referring to in the newspaper?

Mike McInerny: Yeah.

Mr. Sullivan:  The school district still required to publish and the district is too, they made a change and we file a report with the department of taxation, but it’s not the financial report it’s called an economic survey.  It tends to look beyond the numbers to see what trends are occurring that they might be concerned about.  For instance, they give you a flavor of it, we face the possibility of incorporation, we face the possibility of a moratorium based on the EPA sanctions.  The difficulties that Utilities Inc. has faced here recently could have, they are looking for adverse impacts on financial statements.  Every two weeks we give the board a report of the expenditures year to date on all of the budget categories that are here, the cost of publishing something like that could be a little bit heavy.

Mike McInerny: It’s about $800 a year as I recall.

Mr. Sullivan:  Was it really, I’m looking at 50 pages here I don’t know if that’s….         

Mike McInerny:  It’s not 50 pages it’s just a one page

Mr. Sullivan:  Okay, we might consider putting up our…or add these onto the website now that we have the website.

Mike McInerny:  I’m not sure if there’s more than five people who read it, but I found it very interesting.
Pahrump Town Board Meeting
May 19, 2005

Mr. Sullivan:  Maybe if you’re back in Connecticut we could put it on the website and you won’t lose touch with the home town.

Chairman:  Are there any other recommendations from the board?  

Mr. Willis:  What is the recommendation from the manager and the financial officer?  

Mr. Richards:  Staff recommends the resolution be approved.  

Chairman:  That still doesn’t let us off the hook.  If there’s no further discussion I would call for the question…All those in favor of the resolution, signify by saying aye.

Chairman: Motion carries 3-0.  Thank you very much for coming it’s been fun.              
                    
ADJOURNMENT

Richard Billman adjourned the meeting.

Respectfully submitted,


Laurayne Murray, Clerk


Pahrump Town Board Meeting
May 19, 2005

cc:    Town Clerk                            
    Cristina Hinds
Nye County Treasurer                        
Dan McArthur                
Town Board                    
    Nye County Planning            
    Nye County Commissioners            
            Nye County Clerk

/jap
 

 


Backup

There is no backup posted for this meeting.