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CLV-Budget-FY2021.Pdf This page left blank intentionally. June 1, 2020 Honorable Carolyn G. Goodman, Mayor Honorable City Council City of Las Vegas, Nevada LAS VEGAS To the Mayor, Council, Residents, and Stakeholders of Las Vegas: CITYCOUNCIL I am pleased to present the City of Las Vegas' Final Budget for fiscal year 2021. This document CAROLYN G. GOODMAN represents the city's proposed spending plan and is prepared in conformance with Chapter 354 Mayor of the Nevada Revised Statutes. STAVROS S. ANTHONY Mayor Pro-Tem The City of Las Vegas fiscal year 2021 budget process began in December 2019 with a review of past revenue trends and what would drive them in the future. Estimating our revenue is the MICHELE FIORE first important step in determining the expense structure for the next fiscal year's budget as it CEDRIC CREAR determines what can be spent on City services and development. In January of 2020, City management met with a Financial Advisory Committee comprised of business leaders and BRIAN KNUDSEN economists in the Las Vegas community to confirm revenue expectations for the current fiscal VICTORIA SEAMAN year of 2020 and the future expectation in fiscal year 2021. Both the Financial Advisory OLIVIA DIAZ Committee and City were in agreement at this January meeting that fiscal year 2020 revenue was on track to be $17.6 million higher than budgeted and $23.2 million higher than fiscal year SCOTT D. ADAMS 2019 audited revenue numbers. Furthermore, fiscal year 2021 revenues would continue to City Manager increase by approximately another 2.4% over the fiscal year 2020 projections. In summary, the view of revenues for the current fiscal year and the budget fiscal year, in January, projected steady growth and looked to be sufficient to fund current City services and contribute to funding new initiatives. During the period from February 20 - 24, departments within the City presented their budget requests for fiscal year 2021 to the City Manager Team for consideration. On March 5, the first COVID-19 case was confirmed in Nevada as City Management assembled to discuss the department budget presentations and how they fit with revenue projections. The meetings the week of March 5 turned from being one of department budget reviews to a focus of response and fiscal impact from this new threat facing the United States, Nevada and the City of Las Vegas. On March 12, Nevada Governor Steve Sisolak issued a State of Emergency for Nevada in response to the COVID-19 threat. Furthermore, on March 17, the Governor issued a declaration closing all non-essential businesses on March 18 at noon which included the gaming and hospitality industry in Nevada. This shutdown, originally issued for 30 days, would extend into May and June for most businesses deemed non-essential. The gravity of the impact in relation to the COVID-19 pandemic became very clear as businesses closed and a revenue loss assessment was performed by the City._ On March 26, departments were issued a directive to prepare plans to cut their budgets. The directive was a 10% reduction for Public Safety departments and 20% reduction for non-public safety departments. Along with this directive, departments were instructed to focus on major priorities related to the CITYHALL COVID-19 response including: 495 S. MAIN ST. • LAS VEGAS, NV 89101 Health and safety of the City's residents, businesses and other stakeholders. • Health and safety of City employees. 702.229.6011 VOICE I • Maintain essential operations. 711 I TTY cityoflasvegas 00@>0lasvegasnevada.gov In addition to the request for department expenditure decrements, there were several other steps taken by the City to address the COVID-19 pandemic both from a financial perspective as well as looking at support for the community as the city endured the impact of the virus. Some of the major actions taken included: Community Support • Formed an internal COVID-19 response team. • Opened the City's Emergency Operations Center for logistical support. • Enhanced sanitation protocols were introduced at all City facilities. • A daycare option for front line workers was introduced. • Worked with Clark County to open an isolation and quarantine center (ISO-Q) at Cashman Field. • Identified available Federal and State grants to assist with funding the City's response to the virus. • Set up a customer service and payment center to assist in answering the community's questions relating to the virus as well as giving customers a one-stop center to make payments to the City. • Deferred payments and waived penalties for residents and businesses. • Developed plans to assist businesses with re-opening. Financial Actions • Identified essential and non-essential employees. • Furloughed non-essential employees. • Implemented an immediate hiring freeze. • Began concession bargaining with the City's represented employees. • An immediate halt to non-essential spending on expenses such as travel, consulting, and employee education was directed for the remainder of fiscal year 2020. • Reviewed contracts to determine those that could be renegotiated or terminated. • Identified available Federal and State grant funding opportunities. On April 15, the City was required to file a tentative fiscal year 2021 budget with the State of Nevada as required by State law. Given the magnitude and evolving nature of the response to the COVID-19 impacts, the City was still assessing community needs, revenue impacts and necessary cost cutting measures at the time of the tentative filing. The tentative budget reflected our assessment at the time of filing on April 15, but there was knowledge that it would evolve into a much different final budget as all evaluations were completed and revenue losses became clearer. The Federal government enacted the over $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES Act) on March 27, 2020 which provided fast and direct economic assistance for American workers, families and small businesses. Also included in the CARES Act was a provision for a $150 billion direct allocation to state and local governments for dealing with the public health and economic impacts of COVID-19. The State of Nevada was allocated $1.25 billion from the state and local government allocation under the CARES Act. The CARES Act made 45% of the per capita amount available as a direct allocation to cities and local government entities with a population of 500,000 or more. The City of Las Vegas filed a certification requesting direct allocation on April 13 and received an allocation of $118.9 million on April 22. Clark County also received an allocation of $295.0 million which was 45% of the per capita amount based on population of Clark County less the population of the City of Las Vegas. The remaining $836.1 million went to the State government of Nevada. The allocations to state and local governments under the CARES Act are not allowed to be used for revenue replacement. The funds received are to be used for dealing with the public health and economic impacts of COVI D- 19 as defined by the Federal government. The departments in the City provided by May 2 revised budgets including proposed decrements. An evaluation of allowable uses of CARES Act funds awarded to the City was taken into consideration and department budgets were revised to include consideration of reimbursements. On May 9, these revised department budgets were finalized for a May 12 workshop with City Council. The budget workshop was to present the effects and reaction to the COVID-19 pandemic, but also confirm with City Council that their priorities were being met. The City Council met on February 26, 2020 to identify and develop new strategic priorities for the City, revising current priorities to be adopted in its Citywide Comprehensive Strategic Plan. This Plan guides the budget process and prioritizes where City dollars are spent. Council determined that the following themes would comprise the Citywide Comprehensive Strategic Plan over the next three to five years: 1. Public Safety a. Implement crime preventive strategies through the development of public trust and community policing programs. b. Increase level of safety and satisfaction with law enforcement, fire and medical, and judicial services by improving quality of life for our residents, businesses, and visitors through crime reduction. c. Address nuisance impacts to businesses and neighborhoods through increased homelessness mitigation efforts. d. Develop multi-disciplinary human services to support the public safety system. 2. Healthcare a. Expand health care services, mental health, and substance abuse services for at-risk populations, including the homeless. b. Develop a stronger public health system through public/private partnerships that support the health and wellbeing of the community. c. Accelerate development of the Medical District to provide reliable access to medical services consistently throughout the community. d. Support efforts to improve technical and higher education in the healthcare field. e. Foster the environment for employment opportunities for healthcare professionals in the community (UNLV Medical School). 3. Diversify Economy a. lncentivize private investment to increase business development and housing options. b. Support education from Pre-K through workforce development to prepare for the increasing needs in the high-demand labor markets. c. Evaluate zoning and licensing restrictions to allow for new types of business development. d. Continue to push for development of major areas in the undeveloped portion of the City to accommodate large scale business development. Af ter the budget workshop with City Council, the budget was finalized for approval at a final budget hearing held on May 20. The City filed the City Council approved final budget on June 1 with the State of Nevada as required by State law. Final Budget Highlights The city is submitting a $1.5 billion fiscal year 2021 budget across all funds.
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