Budget Overview

In This Section This section includes two topics that help the reader gain an overall understanding of the City of North . First is background information about the city including economic and demographic data. Next is the discussion about the budget process and the financial management policies of the city.

City Facilities Map...... 2

About the City of North Las Vegas ...... 3

Ward Map ...... 4

City Management Structure...... 5

Significant Events of 2006-2007...... 6

Economic and Demographic Information...... 8

About the Budget and the Budget Process ...15

Budget Calendar...... 18

Budget Basis and Financial Structure ...... 19

Financial Management Policies...... 21

Debt Management ...... 25

Debt Capacity & Statutory Debt Limit ...... 28

Summary of Debt Service Requirements...... 31

The North Las Vegas City Hall during "Prevent Child Abuse Awareness" week. CITY OF NORTH LAS VEGAS

City of North Las Vegas Facility and Services Map

19

1 2 26 5b 10

12

1 25 15 20 24 5a 9 13 5 14 32

5 11 6 17 7 21 4 1 29 3 23 30 22

28 18

31 27 16 8

City Facilities and Services City Parks and Pools 21. Municipal Golf Course 22. Petitti Park/Pool 1. City Hall 1. Aliante - Nature Discovery Park 23. Rotary Tot Lot 2. Justice Facility 2. Aviary Park 24. Richard Tam Park 3. Police Stations 3. Boris Terrace Park 25. Sandstone Ridge 4. Library Main Branch 4. Brooks Tot Lot 26. Seastrand Park 5a. Library Northwest Branch 5. Cheyenne Ridge Park 27. Tonopah Park 5b. Aliante Library 6. Cheyenne Sports Complex 28. Valley View Park 6. Detention Center 7. City View Park 29. Windsor Park 7. Business License 8. College Park 30. Walker Pool/Park 8. Fire Stations 9. Craig Ranch Golf Course 31. Tom Williams School Park 9. Neighborhood Recreation Center 10. Deer Springs Park 32. Silver Mesa Aquatic Center 10. Silver Mesa Recreation Center 11. Desert Horizons Park 12. Eldorado Park Other Utilities 13. Flores Park 1. Department of Motor Vehicles 1. Water, City of North Las Vegas 14. Gold Crest Park 15. Goynes Park 2. Post Offices 2. Southwest Gas 3. North Las Vegas Airport 3. Power 16. Hartke Park/Pool/Rec Center 17. Hebert Memorial Park 4. Community College 18. Joe Kneip Park of Southern Nevada 19. McCool Regional Park 5. North Las Vegas 20. Monte Vista Park Chamber of Commerce 6. North Vista Hospital

ADOPTED BUDGET FISCAL YEAR 2007-08 2 CITY OF NORTH LAS VEGAS

ABOUT THE CITY

The City of North Las Vegas stretches across the Council-Manager form of government. The Mayor northern rim of the in Clark is elected on an at-large, non-partisan basis to serve County, Nevada and encompasses approximately a four-year term. Effective January 1, 2000, North 82.2 square miles. It is situated on the northern Las Vegas Council wards were created. The four city limits of the City of Las Vegas, the county seat Councilmembers must live within, and are elected and is the fourth most populated incorporated city by, their ward. Terms of office are staggered so that in Nevada. The City provides its citizens with City-wide elections are held every two years for police and fire protection, wastewater and water two or three of the five offices. systems, parks, a golf course, streets, a municipal court and other general governmental services. The five-member City Council is the policy- The economy of the North Las Vegas area is based making body of the City. By a majority vote, the on commerce, tourism, industry and government. Council may enact and enforce ordinances and orders and pass resolutions necessary for the oper- City Government ation of municipal government and management of The City of North Las Vegas was incorporated on City affairs. Council members also actively serve May 1, 1946. The City operates under the in leadership positions for numerous intergovern- provisions of an act cited as Chapter 573, Statutes mental agencies and associations to further the of Nevada, 1971, as amended. It maintains a interests of the City.

ADOPTED BUDGET FISCAL YEAR 2007-08 3 CITY OF NORTH LAS VEGAS

The current Mayor and members of the City Council and their terms of office are as follows:

Name Ward Represented Term Expires Michael L. Montandon, Mayor At Large June 2009 William E. Robinson, Mayor Pro Tem Ward 2 June 2011 Stephanie S. Smith Ward 3 June 2009 Shari L. Buck Ward 4 June 2011 Robert L. Eliason Ward 1 June 2009

NORTH LAS VEGAS

WardWard 44 WardWard 11 WardWard 33

WardWard 22

LAS VEGAS VALLEY

ADOPTED BUDGET FISCAL YEAR 2007-08 4 CITY OF NORTH LAS VEGAS

City Management The City Manager and City Attorney are appointed by and report to the City Council. The City Manager's administration consists of an Assistant City Manager responsible for administrative operations, an Assistant City Manager responsible for development operations, an Assistant to the City Manager and fifteen departments including: Public Works, Utilities, Parks & Recreation, Economic Development, Fire, Police, Planning & Zoning, Information Technology, Finance, City Clerk, Human Resources, General Services, Municipal Court, City Attorney, Communications, Office of Housing and Neighborhood Services and the Library District. North Las Vegas is the only city in Southern Nevada with a municipally-managed Library District. The 2007-08 budget authorizes 2,156 full-time equivalent employees.

Electorate

North Las Vegas Library Redevelopment Municipal Court Board of Trustees Agency City Council Judge North Las Vegas Municipal Library Court City Attorney City Manager

Director of Assistant to Communications The City Manager City Auditor

Assistant City Manager Assistant City Manager Human Police Fire For Operations City Clerk For Development Resources Finance

Parks & Public Works Recreation

General Services Utilities

Information Planning & Zoning Technology (Future Development Services)

Economic Office of Housing & Development Neighborhood Services

State Legislative Emergency Management Affairs Officer Coordinator

Manager of Labor Relations

ADOPTED BUDGET FISCAL YEAR 2007-08 5 CITY OF NORTH LAS VEGAS

Significant Events of 2006-07 of the magazine’s 2006 report on the Best Places to Live. According to the magazine, North Las Vegas’  The City of North Las Vegas’ Fire, Police and other key rate of job growth during that time was 36.6 percent departments responded to a major incident on the last and more than 5,000 jobs were created. In addition, weekend of July 2006 when an explosion and fire the Census Bureau stated the City of North Las Vegas occurred at a propane facility. The actions of these is once again the 2nd fastest growing large City (those City departments were instrumental in evacuating with over 100,000 people) in the nation. The popula- people safely from the immediate area of the explo- tion grew by 11.4% during the last year. sion, preventing loss of life and minimizing property damage near the site of the explosion.  The City of North Las Vegas was awarded the Certificate of Achievement for Excellence in Financial  The City of North Las Vegas welcomed Montecito Reporting for the 25th consecutive year. This award, Companies’ Cheyenne Pointe retail power center, the presented by the Government Financial Officers first large scale commercial retail project within the Association of the United States and Canada (GFOA), downtown redevelopment in July 2006. The project, is the highest form of recognition in the area of govern- estimated to cost $18 million, will be anchored by three mental accounting and financial reporting. Its attain- main tenants. ment represents a significant accomplishment by a government and its management.  The North Las Vegas City Clerk opened a full service Passport Application Acceptance Office in September  North Las Vegas Fire Department was honored with a 2006. The office will provide information, application Child Passenger Safety Award in January 2007. The forms and passport photos for American citizens who award from Safe Kids Clark County recognized the want to obtain, replace or change a passport. North Las Vegas Fire Department for being the first and only fire department to institute a child passenger  North Las Vegas officials held a groundbreaking cere- safety team. mony for Sandstone Ridge Park in October 2006. The park is expected to be a $5.9 million project. The park  The City of North Las Vegas was one of nine cities and is designed to include lighted baseball and soccer counties this year to receive a Certificate of fields, basketball courts, a skateboard park, restroom, Achievement Award from the International City/County paved parking lot, walkways, shade structures, land- Management Association (ICMA) for its reporting of scaping and other amenities. performance data through budgets, newsletters and information provided to elected officials. This was the  The City of North Las Vegas has launched two new second consecutive year the City received the award. online payment options: one for Utility payments and To receive this award, each community reported data one for the City’s Parks & Recreation class registra- for 15 local government services, from police and fire tion. Long lines and inconvenient waits will be a thing protection services to road maintenance and park of the past. Online payments can be made 24 hours a services. day, seven days a week with a valid MasterCard or Visa. In addition, the Utilities Department also plans to  Fire Station 57 held its grand opening in February roll out an automated, 24 hour phone payment option. 2007, which houses 15 firefighters and one fire engine. The 9,502 square foot facility costs approximately $3.7  Money Magazine ranked North Las Vegas 13th among million and sits on a 1.5-acre parcel. The City now American cities with the highest percentage of job operates seven fire stations with 153 firefighters. growth between 2000 and 2005. The ranking was part

ADOPTED BUDGET FISCAL YEAR 2007-08 6 CITY OF NORTH LAS VEGAS

 The City of North Las Vegas was recognized with the  Majed Al-Ghafry was hired as Public Works Director in Distinguished Budget Presentation Award for fiscal year February 2007. His prior employment was with the city 2006-07 from the Government Finance Officers of Lemon Grove, California where he had been the Association. The award represents the highest form of Public Works Director and City Engineer. recognition in government budgeting. This is the third consecutive year the City has received this designation.  Carie Torrence was promoted to City Attorney in March Guidelines are designed to assess how well an entity’s 2007. She previously held the position of Assistant City budget serves as a policy document, financial plan, Attorney for the City of North Las Vegas. operations guide and communications device. For the second year in a row, the City also received special  With assistance from City officials, 25 teens from recognition for its budget presentation as an outstanding Canyon Springs High School spent their Saturday communications device, and this year for the first time, removing hundreds of feet of graffiti from the North Las the budget document also received special recognition Vegas wash at Civic Center Drive and Cheyenne as an outstanding policy document. Avenue in March 2007. The students came to the City wanting to help tackle graffiti. This is the first of several  Six firefighters and three officers were recognized with beautification projects the City plans to complete with the inaugural Eagle Award for their exemplary efforts on help from area high school students. the job. The Eagle Award recognizes City employees’ outstanding achievement. The council recognized Fire  The City of North Las Vegas celebrated its 60th anniver- Captain Yaphet Miller, Engineer Jeff Hurley and fire- sary. North Las Vegas was incorporated on May 16, fighters Elmore Williams, Ben Erickson, Dennis McLane 1946, when its population was 2,875. Today, North Las and Steven McKlein for their rapid response to a fire Vegas is a full service municipality. Its population today and their efforts, which resulted in the rescue of a baby is estimated at nearly 215,000 and is expected to reach and five other fire victims in November 2006. Police 499,335 by the year 2030. officers Leonard Miller, Teodro Mendez, and Jon Tondry were also recognized for their lifesaving efforts.  Several community events were held as well. Among them were Balloonapalooza, a premier ballooning event,  Joyce Lira was appointed Human Resources Director in the 4th Taste and Tunes Festival, an eclectic lineup of October 2006. Her prior employment was as Human music and ethnic events, and the Fire Department’s Resources Director for the City of Scottsdale, Arizona. 50th Anniversary Safety event.

ADOPTED BUDGET FISCAL YEAR 2007-08 7 CITY OF NORTH LAS VEGAS

Economic and Demographic Information To a considerable degree, the City is an integral part of the Clark County economy. Residents of North Las Vegas are employed, shop and recreate in the City as well as in Las Vegas, Henderson, Boulder City and unincorporated areas of Clark County. Conversely, people who are employed, shop and recreate in North Las Vegas may live in the surrounding areas. According to the U.S. Census Bureau, North Las Vegas is the Second Fastest Growing Large City in America.

America's Top 10 Fastest Growing Large Cities (100,000 population or more)

Population Population % Increase Rank City, State July 1, 2004 July 1, 2005 2004 to 2005 1. Elk Grove, CA 100,686 112,338 11.6% 2. North Las Vegas, NV 158,540 176,635 11.4% 3. Port St. Lucie, FL 118,655 131,692 11.0% 4. Gilbert, AZ 156,816 173,989 11.0% 5. Cape Coral, FL 128,193 140,010 9.2% 6. Moreno Valley, CA 166,261 178,367 7.3% 7. Rancho Cucamonga, CA 159,110 169,353 6.4% 8. Miramar, FL 101,367 106,623 5.2% 9. Chandler, AZ 223,895 234,939 4.9% 10. Irvine, CA 178,085 186,852 4.9%

Source: U.S. Census Bureau, June 21, 2006

Population: Growth Trend Since 2000, the North Las Vegas population has grown by 75.4%, with an average annual growth rate of 12.6%. The City's population for June 30, 2007 is projected at 214,971, a 6.1% increase from 2006.

250,000 Year Population % Increase

200,000 1993 61,015 11.8% 1994 68,474 12.2% 150,000 1995 75,375 10.1%

100,000 1996 80,066 6.2% 1997 88,559 10.6% 50,000 1998 94,480 6.7%

0 1999 101,841 7.8% 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 2000 115,488 13.4% ActualYear Projected 2001 125,196 8.4% Population: Projections 2002 137,691 10.0% The City of North Las Vegas is anticipated to have a build out population 2003 147,877 7.4% of 521,303 by the year 2025. 2004 168,081 13.7% Year 2006 2010 2015 2020 2025 (Build Out*) 2005 190,150 13.1% Population 202,520 263,272 349,282 435,293 521,303 2006 202,520 6.5% Source: City of North Las Vegas Demographer 2007 214,971 6.1% *Build out number includes land not yet released by the Bureau of Land Management Source: U.S. Census Bureau, City of North Las Vegas Demographer

ADOPTED BUDGET FISCAL YEAR 2007-08 8 CITY OF NORTH LAS VEGAS

Master Planned Communities North Las Vegas currently has two major master-planned communities, Eldorado and Aliante. These communi- ties have set the standard for future developments. A new master planned community by Olympia Group called Park Highlands, is being built in the City’s northern edge, shown on the map as future development. Aliante Eldorado Future Development

Master Planned Existing Units Proposed Projected % Total Community Jan. 1, 2007 Units* Population* Complete** Acres Aliante 5,600 6,500 20,000 86% 1,905 El Dorado 4,600 5,500 18,000 84% 1,080 Park Highlands 0 15,750 50,000 0 2,675

* approximates at buildout, **under construction Planned Unit Development* 11.0% Current Land Use Redevelopment 1.2% North Las Vegas is about 47.7% Medium Density Residential 1.8% Commercial built out, with the majority (45.6%) 4.1% Industial 12.7% of land still remaining undeveloped. Public/Semi-Public 1.1% Of the land that is developed, the greatest percent (21.8%) is low Open Land 45.6% density residential. Low Density Resiidential Source: City of North Las Vegas Planning & Zoning Department, 21.8% percentages calculated from the current zoning map. High Density Residential 0.7% Future Land Use This chart shows the land use at Master Planned Community Mixed Use 10.8% buildout (in approximately the year 8.5% Open Space 6.3% 2025) when the greatest percentage Single Family of acreage will be low density resi- Medium Density Public / Semi-Public dential. Industrial will have the 9.6% 13.3% second highest acreage, due in part Downtown 4.6% to the proximity of acreage within Multi-Family the Nellis Air Force Base flight 8.6% patterns. Land in this area is limited Industrial 17.5% to non-residential uses. Single Family Low Density 17.8% Commercial 3.0% Source: City of North Las Vegas Planning & Zoning Department, percentages calculated from the 1999 Land Use

ADOPTED BUDGET FISCAL YEAR 2007-08 9 CITY OF NORTH LAS VEGAS

Economic Indicators Housing Prices The economy in metropolitan Las Vegas Clark County's median housing prices showed a continues to outperform the State and national slight decrease from last year attributable to the economies. Gaming continues to be the largest marked housing slowdown. A housing rebalance component of Southern Nevada's economic base is well underway and may continue into 2007. and a catalyst for construction and growth in The median price of a new home in Las Vegas other economic sectors. The following economic was $343,198, a 2.4% decrease over 2005. indicators for the City of North Las Vegas and the Existing home prices at $280,000 were 1.8% less metropolitan Las Vegas area are based on statis- than the previous year. tics available from the University of Nevada Las Vegas, Center for Business and Economic Research for calendar 2006. Other sources include the City's Planning, Development Services and Business License Divisions.

Employment The unemployment rate is a critical indicator of relative strength in the local economy. The Las Vegas Metropolitan Statistical Area's (MSA) unemployment rate as of December 2006 was 4.2% compared with 3.5% in December 2005. Although the unemployment rate increased in Retail 2006, tied mostly to the housing downturn, the Clark County's taxable sales reached $18.1 billion Las Vegas MSA unemployment rate is still low in the first half of fiscal 2007, an increase of compared with 4.4% for Nevada, 4.8% for 2.6% over the same period last year. Sales taxes California, and 4.3% for the nation. are a component of six revenue sources deposited in the "local government tax distribution fund" and then distributed by the County by statutory formula.

Taxable Sales 1/

Fiscal Year Clark County Percent Percent Ended June 30 Total Change State Total Change 2001 22,782,626,462 6.5% 31,715,361,399 5.8% 2002 22,983,726,632 0.9% 31,986,722,618 0.9% 2003 24,650,382,575 7.3% 33,908,130,387 6.0% 2004 28,286,186,597 14.7% 38,505,761,784 13.6% 2005 32,606,312,337 15.3% 44,192,447,817 14.8% 2006 35,604,392,484 9.2% 48,402,487,258 9.5% July to December 2005 17,664,544,875 - 24,292,845,099 - July to December 2006 18,126,850,862 2.6% 25,013,051,574 3.0%

Source: State of Nevada - Department of Taxation 1/ - Subject to revision

ADOPTED BUDGET FISCAL YEAR 2007-08 10 CITY OF NORTH LAS VEGAS

Las Vegas Visitor Volume Tourism (in thousands) The increase in tourists this past year in Clark Calendar Years 1998-2007 County this past year rose slightly from 38.6 million in 2005 to 38.9 million in 2006, a .8 40,000 % increase. Tourism numbers are expected to 35,000 increase 2.3 % in 2007, bringing next year's 30,000 estimate to 39.8 million visitors. 25,000 20,000 Gaming Revenue 15,000 Total Clark County gaming revenue for 2006 10,000 was $10.6 billion, a 9.5% increase over 2005. 5,000 0 The percentage increase in gaming revenue 98 99 00 01 02 03 04 05 06 07 was less than in the past three years. Gaming Year revenue is expected to slow in 2007 to $11.1 Actual Projected billion; only a 4.1% increase from 2006 and in 2008, the estimate is only a 4.3% increase Clark County Gross Gaming Revenues to $11.6 billion. (in millions) Calendar Years 1998-2007

Construction Trends 12,000 Total building permit valuation (residential and non-residential) is an indicator of overall 10,000 construction activity. In 2006, no other 8,000 economic factor experienced the largest 6,000 decline than building permits. This year was 4,000 a tough year, as only 8,329 building permits were issued with a total permit valuation over 2,000 $8.9 million. Comparing these numbers with 0 98 99 00 01 02 03 04 05 06 07 2005, the percentage of building permits this Year year decreased by 26.9% and permit valuation Actual Projected dropped 32.8%.

ADOPTED BUDGET FISCAL YEAR 2007-08 11 CITY OF NORTH LAS VEGAS New residential construction is an indicator of trends in both the construction industry and in the overall local economy. In 2006, North Las Vegas issued over 3,800 single-family permits valued at Number of Building Permits $518 million, a 44.3 % decrease in valuation from Calendar Years 1997-2007 2005. One small bit of good news was that

1,805 new multi-family residential units were 14,000 permitted at a valuation of over $115.9 million, a 7.2% valuation increase over 2005. 12,000 10,000

The total value of permits for commercial 8,000 construction (including retail, office and industrial 6,000 buildings) is a key economic indicator of present and future economic conditions. Although the 4,000 number of commercial and industrial permits 2,000 issued went up in 2006 by 27.1%, total valuation 0 of all permits decreased 8.9 % compared to 2005 97 98 99 00 01 02 03 04 05 06 07 figures to $206.7 million. Commercial/Industrial Year Actual Projected permitting is expected to rebound in 2007.

Building Permits Year Total Building Permits % Difference Commercial / Industrial Permits % Difference 1995 4,095 -6.7% 208 25.3% 1996 4,233 3.4% 277 33.2% 1997 4,122 -2.6% 278 0.4% 1998 4,391 6.5% 322 15.8% 1999 4,175 -4.9% 309 -4.0% 2000 4,626 10.8% 298 -3.6% 2001 5,961 28.9% 319 7.0% 2002 6,489 8.9% 257 -19.4% 2003 9,759 50.4% 381 48.2% 2004 10,185 4.4% 470 23.4% 2005 11,392 11.9% 616 31.1% 2006 8,329 -26.9% 783 27.1% Source: City of North Las Vegas Public Works Department (Building Safety Division) Number of Business Licenses Business Licenses Calendar Years 1997-2007 The number of new business licenses issued 14,000 is an indicator of general business activity. A total of 2,161 new business licenses were 12,000 issued, a 3.2% increase in calendar 2006. 10,000

8,000

6,000

4,000

2,000

0 97 98 99 00 01 02 03 04 05 06 07* Year Existing Licenses New Licenses * Decrease anticipated due to municipal code revisions.

ADOPTED BUDGET FISCAL YEAR 2007-08 12 CITY OF NORTH LAS VEGAS

Zip Code Profiles The City of North Las Vegas currently has thirteen zip codes - 89030, 89031, 89032, 89081, 89084, 89085*, 89086*, 89087*, 89165*, 89101**, 89115**, 89124**, and 89130**.

Category 89030 89031 89032 89081 89084 Citywide+ Occupied Housing Units 14,812 17,910 13,332 3,896 3,950 53,900 Number of Housing Units 15,341 18,356 13,645 4,038 4,234 55,614 Population 56,683 54,586 41,485 11,461 11,567 175,782 Age: 18-24 15% 11% 10% 10% 5% 12% 25-34 19% 19% 20% 36% 26% 21% 35-44 21% 21% 21% 27% 17% 21% 45-54 18% 20% 18% 12% 15% 18% 55-64 14% 15% 15% 10% 21% 15% 65+ 13% 14% 16% 5% 16% 14% Education of Adults: Some high school 28% 9% 10% 4% 5% 15% High school degree 32% 26% 27% 22% 18% 27% Some college 25% 39% 36% 38% 36% 34% College degree 10% 14% 14% 19% 23% 14% Some graduate 2% 3% 5% 5% 6% 3% Graduate degree 3% 9% 8% 12% 12% 7% Children (under 18): Yes 46% 38% 45% 58% 36% 43% No 54% 62% 55% 42% 64% 57% Gender*: Male 51% Female 49% Type of Dwelling: Single-family 53% 95% 75% 90% 93% 76% Apartment 37% 3% 19% 10% 0% 18% Condo/Townhouse 5% 2% 6% 0% 7% 4% Mobile Home 5% 0% 0% 0% 0% 2% Household Income: Under $15,000 22% 2% 5% 2% 0% 9% $15,000-19,999 6% 3% 5% 1% 1% 4% $20,000-24,999 19% 6% 8% 1% 4% 10% $25,000-34,999 19% 13% 14% 15% 4% 15% $35,000-49,999 14% 21% 20% 16% 20% 18% $50,000-74,999 14% 32% 28% 31% 29% 25% $75,000-99,999 2% 16% 15% 20% 22% 12% $100,000+ 4% 7% 5% 14% 20% 7% Median $26,309 $54,257 $48,124 $62,500 $67,819 $45,227 Length of Residence: Less than 1 year 5% 6% 5% 10% 17% 6% 1-5 years 22% 25% 25% 40% 45% 26% 6-10 years 18% 19% 18% 18% 12% 18% 11-20 years 14% 23% 27% 12% 11% 20% More than 20 years 41% 27% 25% 20% 15% 30%

Sources: 2006 Las Vegas Perspective and U.S. Census Bureau, Census 2000 * Profile information not yet available. ** Zip code only partially in North Las Vegas, profile information for this portion of the zip code is not available. + Citywide total includes only the 89030, 89031, 89032, 89081, and 89084 zip codes.

ADOPTED BUDGET FISCAL YEAR 2007-08 13 CITY OF NORTH LAS VEGAS

Major Employers in the City of North Las Vegas (100+ Employees)

Company Description Employees City of North Las Vegas Municipal Government 2,156 * Mission Industries Commercial Laundry 1,450 Marmaxx Distribution Center Distribution Center 1,709 Aggregate Industries Paving and Construction 1,700 Veolia Transportation Public Transportation 1,267 Gambling Hall and Casino 1,162 Pratte Building Systems Contractor 1,100 Las Vegas Paving Company Contractor 1,100 Pete King Nevada Corp. Contractor 1,034 The Cannery Casino- Casino 975 Republic Services Garbage Collection 915 Fiesta Rancho Casino Casino 697 National Security Technologies Nevada Test Site Manager/Operator 650 Nevada Power Company Electric Utility 633 North Vista Hospital Medical Services 612 Walmart Retail Sales 561 Sunterra Corp. Corporate Headquarters 450 U.S. Food Service Distribution 450 Jerry's Nugget Casino 440 Capital Cabinet Corp. Cabinet Manufacturer 400 Deluca Liquor & Wine & Coors of Las Vegas Distributor 386 Community College of Southern Nevada Education 362 CPI Card Group Manufacturer 350 Cashman Equipment Company Heavy Equipment 340 Medic West Ambulance Ambulance Service 325 The Casino 300 CDW Corp. Distribution Center 275 Sysco Corp. Food Distributor 270 Pan Western Corp. Transportation 270 Exel Retail Return Center 239 AC Houston Lumber Manufacturer 230 Majestic Plumbing Contractor 230 Potlatch Corp. Paper Manufacturer 225 Scenic Airlines Air Tour Service 223 Goodwill of Southern Nevada Not-For-Profit Organization 220 Silver State Helicopters Commercial Helicopter Operator 200 Casino 180 Cintas Corp. Commercial Laundry 170 Cheyenne Residential and Nursing Center Nursing Home 154 Meadow Gold Dairy Company 152 Jensen Pre-Cast Concrete 150 Upper Deck Sports and Entertainment 150 Tehama Apparel Clothing Distributor 133 Sharp Plumbing Contractor 127 Cole Industries Manufacturer 124 Bed Bath & Beyond Retail Sales 120 Cheyenne Care Center Nursing Home 110

Source: City of North Las Vegas Community Development Department * City of North Las Vegas reflects Adopted Budget 2007-08

ADOPTED BUDGET FISCAL YEAR 2007-08 14 CITY OF NORTH LAS VEGAS

ABOUT THE BUDGET AND THE BUDGET PROCESS

The fiscal 2008 Budget is presented as a policy docu- addresses areas that may not be traditional budget ment, an operations guide, a financial plan, and a document topics. These include current and future communications device. This document will be debt management, staffing levels, long-range plan- submitted to the Government Finance Officers ning, capital spending plans, and the tax base and Association (GFOA) for review and consideration of its relationship to the provision of services. the Distinguished Budget Award. GFOA presented the City of North Las Vegas with the Distinguished 3. A Link With the General Public Budget Award for its fiscal 2007 Budget, its third The budget provides a unique opportunity to consecutive award from GFOA. In addition, the City’s allow and encourage public review of City opera- fiscal 2007 Budget also received special recognition tions. The budget describes the activities of the awards from GFOA in two categories: “Outstanding City, the reason or cause for those activities, as a Communications Device” for the second consecu- future implications, and the direct relationship to tive year and “Outstanding as a Policy Document” for the citizenry. the first time. 4. A Legally Required Financial What? Planning Tool The budget includes the financial planning and legal Traditionally a financial planning tool, the budget authority to obligate public funds. Additionally, the is also a State law requirement of all cities as budget provides significant policy direction by the City stated in Nevada Revised Statutes (NRS) 354.598. Council to the staff and the community. As a result, the The budget must be adopted as a balanced budget City Council, staff, and the public are involved in estab- and must be in place prior to the expenditure of lishing the budget for the City of North Las Vegas. any City funds. The budget is the legal authority to expend public monies and controls those The budget provides four functions: expenditures by limiting the amount of the appro- priation at either the fund or department level. 1. A Policy Document The revenues of the City are estimated, along with available cash reserves, to indicate funds avail- The budget functions as a policy document in that able. The staff requests for appropriations the decisions made within the budget will "reflect comprise the disbursement side of the budget. the general principles or plans that guide the actions taken for the future." As a policy docu- ment, the budget makes specific attempts to link desired goals and policy direction to the actual day-to-day activities of the City staff.

2. An Operational Tool The budget of the City reflects its operation. Activities of each City function and organization have been planned, formalized, and described in the following sections. This process will help to maintain an understanding of the various opera- tions of the City and how they relate to each other, and to the attainment of the policy issues and goals of the City Council. In this effort, the budget

ADOPTED BUDGET FISCAL YEAR 2007-08 15 CITY OF NORTH LAS VEGAS

How Does the Budget Compare of the Finance Department. The budget is monitored to the Annual Report? by a reporting system consisting of monthly reports The City prepares an annual financial report in confor- available to the department directors and divisional mance with generally accepted accounting principles managers. Financial reports are prepared by the (GAAP). The budget is prepared using the same basis Finance Department comparing actual expenditures of accounting. The Governmental Fund types are and revenues with the budget. In these reports, finan- budgeted on a modified accrual basis and can be cial data is presented at the same level of detail as the directly compared to the operating statements in the final budget. City annual report. The Proprietary Fund types are budgeted on a full accrual basis and depicted in the Financial reports are submitted to the City Council on annual report using a full accrual basis. a quarterly basis. The budget is formally augmented by Council action at year-end.

Why? Staff Planning and Preparation The budget is a requirement of State law, and as Budget preparation begins in October, with the projec- adopted, constitutes the legal authority for expendi- tion of City reserves, revenues, expenditures, and tures. The City's budget is adopted at the fund level financial capacity. It is with this "groundwork" that so expenditures may not legally exceed appropriations departmental budget requests are made and subse- at that level. The City's budget is generally amended quently reviewed. One of the key foundations to the once a year. All appropriations, except operating City's budget is the City Work Plan. This schedule grants and capital projects, lapse at year-end. appears on the following pages. Unexpended resources must be reappropriated in the subsequent period. Components of the Budget There are three components of the budget: In addition, the budget process affords both an inter- the base budget, capital improvements, and esting and challenging opportunity to reassess plans, supplemental requests. overall goals and the means for accomplishing them. 1. Base Budget Approach It is through this effort that the budget is the single The base budget consists of budget proposals most important policy document produced each year. sufficient to maintain the operation of programs Much effort is expended to ensure the budget plan will that have been authorized in earlier budgets. achieve the goals and objectives of the City Council. Fiscal 2008 budget allocation targets were estab- lished at fiscal 2007 levels. How? The Budget Process Determining Policies and Goals - The Budget process for the City of North Las Vegas is, in some respects, an ongoing, year-round activity. The formal budget planning begins in the fall with discussions between the City Manager, the departments, and the City Council about the status of ongoing programs and new goals, and objectives for the future.

Reporting and Monitoring The budget and its policies are implemented through the individual departments and the accounting controls

ADOPTED BUDGET FISCAL YEAR 2007-08 16 CITY OF NORTH LAS VEGAS

2. Capital Improvements modified by the City Council. The actual appropria- The budget includes capital projects previously tions, implementing, and amending the budget are authorized by City Council as part of the five-year contained in the budget adopted by the City Council. Capital Improvement Plan (CIP). The budget CIP authorizes a series of projects scheduled for Amending the Budget construction in fiscal 2008. The City Manager is authorized to transfer budgeted amounts between departments within any fund. The Council approves specific projects up to the However, any revisions that alter the total of a fund funding approved in the budget. If more funds must be approved by the City Council. become available, or third party funding can be arranged, a budget amendment is considered. The status of the budget is comprehensively reviewed in June to identify any needed adjustments. All The City's capital program is funded primarily by requests for amendments are filed with the Finance interlocal funds of other governmental agencies, Director. the issuance of general obligation bonds, and federal and state loan and grant programs. Budget Basis and Financial Structure City's Organizational Units 3. Supplemental Requests The accounts of the City are organized on the basis of Departments may request funding above the base funds, each of which is considered a separate budget amount in order to maintain current levels accounting entity. The operations of each fund are of service, to provide for the expansion of existing accounted for with a separate set of self-balancing programs, or to enable the implementation of new accounts that comprise its revenues and expenditures, services or programs. These are considered to be or expenses, as appropriate. Government resources supplemental requests. All supplemental funding are allocated to and accounted for in these funds based requests must be adequately described and include upon the purposes for which they are to be spent and a concise justification that reflects consideration of the means by which spending activities are controlled. reasonable alternatives, particularly, if the request involves addition of permanent personnel. Departments are responsible for carrying out a major governmental activity, such as Police or Public Works Tentative Budget services. A department is comprised of one or more In March, the budget is ready for the City Manager's unique divisions to further define a service delivery, review. The tentative budget is prepared and available such as the Highways and Street Division of the for City Council and citizen review by April 15th of Department of Public Works. each year in accordance with NRS 354.596. The Council holds a workshop on the tentative budget to examine the budget in detail. The City Council then conducts a preliminary budget hearing before acting formally on the budget.

A public hearing is scheduled for the City Council meeting on the third Tuesday in May, with the final budget being adopted by June 1st.

Final Budget The final budget is issued as a formal published docu- ment in the same format as the tentative budget, but is

ADOPTED BUDGET FISCAL YEAR 2007-08 17 CITY OF NORTH LAS VEGAS

Budget Calendar method of presenting, in financial terms, the overall FY 2007-08 plan for the 2008 fiscal year. Tentative Work Plan for Fiscal 2008 Budget preparation allows the city the opportunity to The following goals guided the development of the reassess goals, as well as, objectives and the means for budget and set the direction of activity for the various accomplishing them. The budget document is the departments during the upcoming year.

2006 October 3 to November 6 Prepare fiscal 2007-08 Budget Manual October 23 to November 2 Capital Improvement Plan (CIP) reviews with City Manager, Assistant City Manager and Department Directors November 6 Load Brass with final audited fiscal 2006 actual numbers and fiscal 2007 year-to-date actuals through October November 7 Brass training sessions as needed November 9 Budget kick off / distribution of Budget Manual December 4 Deadline for departments in Group A to submit proposed budgets to Finance December 5 Council CIP Workshop December 18 Deadline for departments in Group B to submit proposed budgets to Finance December 20 Council's adoption of fiscal 2007 - 2012 CIP December 18 to January 25 Finance department reviews budget submittals, reconciles to CIP

2007 January 29 - February 1 Group A departments meet with City Manager and Finance to review proposed budgets February 5 - 8 Group B departments meet with City Manager and Finance to review proposed budgets February 15 Receive preliminary revenue projections from Nevada Department of Taxation March 15 Receive final revenue projections from Nevada Department of Taxation March 15 to April 14 Prepare Tentative Budget in State-required format March 16 - 24 Revise budgeted revenues as necessary based on final projections March 20 Brief City Council on Tentative Budget April 15 Submit Tentative Budget to Nevada Department of Taxation April 15 to May 30 Prepare adopted budget in State-required and Government Finance Officers Association (GFOA) format May 15 Public hearing on proposed budget and formal adoption of fiscal 2007-08 budget June 1 Submit Adopted Budget to Nevada Department of Taxation June 20 City Council augment/amend fiscal year ending June 30, 2007 budget August 15 Deadline to submit budget document to GFOA

ADOPTED BUDGET FISCAL YEAR 2007-08 18 CITY OF NORTH LAS VEGAS

Budgeting by Function Debt Service Funds - Debt service funds are used to Presentation of the operating budget is also structured by account for the accumulation of resources for, and the functions, which delineate budget expenditures in terms payment of general long-term debt principal, interest, of broad goals and objectives. and related costs. The City's budget includes two debt service funds. Major functions include: (1) General Government Capital Projects Funds - Capital projects funds are (2) Judicial used to account for financial resources used for the (3) Public Safety acquisition or construction of major capital facilities. (4) Public Works The City has a number of capital projects, which are (5) Culture & Recreation summarized and reported by function. (6) Community Support (7) Debt Service Proprietary Fund Types

Functions are prescribed by the Governmental Enterprise Funds - Enterprise funds are used to Accounting Standards Board (GASB). Functions may account for operations that are financed and operated in transcend specific fund or departmental boundaries in a manner similar to private business enterprises. The that a function encompasses all associated activities, intent of the governing body is that the costs (expenses, regardless of fund or department, directed toward the including depreciation) of providing goods or services attainment of a general goal or objective. to the general public on a continuing basis be financed or recovered primarily through user charges. The City's Financial Structure enterprise funds consist of the Water Fund, Wastewater For accounting purposes a local government is not Fund and the Golf Course Fund. treated as a single, integral entity. Rather, a government is viewed as a smaller collection of separate entities Internal Service Funds - Internal service funds are for known as “funds”. All funds used by the City of North the financing of goods or services provided by one Las Vegas are classified into one of seven fund types. department or agency to other departments or agencies The City appropriates to all funds represented in this of the city, or to other governmental units, on a cost budget book. The following are the seven fund types reimbursement basis. There are two internal service used. funds, the Motor Equipment Fund and the Self Insurance Reserve Fund. Governmental Fund Types Fiduciary Fund Types General Fund - The general fund is the general oper- ating fund of the City. All general tax revenues and Trust Funds - Trust funds are used to account for assets other receipts that are not required either legally or by held by the City in a trustee capacity or as an agent for generally accepted accounting principles (GAAP) to be individuals, private organizations, other governments, accounted for in other funds are accounted for in the and/or other funds. general fund. Measurement Focus Special Revenue Funds - Special revenue funds are Governmental fund types are accounted for on a used to account for the proceeds of specific revenue "spending" or "financial flow" measurement focus. This sources (other than major capital projects) that are means that only current assets and current liabilities are legally restricted to expenditures for specified purposes. generally included on the balance sheets. Accordingly, The City has many special revenue funds though the the reported undesignated fund balances (net current largest are the Public Safety Tax Fund and the Street assets) are considered a measure of available, spendable, Maintenance, Parks and Fire Station Fund. or appropriable resources. Governmental fund type

ADOPTED BUDGET FISCAL YEAR 2007-08 19 CITY OF NORTH LAS VEGAS operating statements present increases (revenues and recorded as expenditures until paid; and (3) certain other financing sources) and decreases (expenditures inventories of supplies which are considered and other financing uses) in net current assets. expenditures when purchased. All Proprietary Funds use the accrual basis of Proprietary and fiduciary fund types are accounted for accounting. Revenues are recognized when earned on an "income determination" measurement focus. and expenses are recognized when incurred. Accordingly, all assets and liabilities are included on their balance sheets and the reported fund equity (total Fiduciary Funds are accounted for on the modified reported assets less total reported liabilities) provides accrual basis. an indication of the economic net worth of the fund. Operating statements for proprietary fund types (on an Relationship between income determination measurement focus) report Budget and Accounting During the year, the accounting system is main- increases (revenues) and decreases (expenses) in total tained on the same basis as the adopted budget. economic net worth. This enables departmental budgets to be easily monitored monthly via accounting system reports. Basis of Accounting and Accounting adjustments are made at fiscal year end Measurement Focus to conform to GAAP. The major differences The City of North Las Vegas develops the revenue between this adopted budget and GAAP for and expenditure/expense estimates contained in the governmental fund types are: (a) encumbrances annual budget in accordance with GAAP. are recorded as the equivalent of expenditures Enterprise fund budgets are prepared in confor- (budget) as opposed to a reservation of fund mance with GAAP, except that capital outlay balance (GAAP); (b) certain revenues and expendi- expenses are budgeted for interim management tures, (e.g. compensated absences) not recognized purposes and subsequently recorded as fixed assets for budgetary purposes are accrued (GAAP). at year-end. Depreciation expense is budgeted. Because the revenue and expenditure/ expense esti- Enterprise Fund differences include: mates are based on GAAP, it is important for the (a) encumbrances are recorded as the equivalent of reader to have an understanding of accounting prin- expenditures (budget) as opposed to a reservation ciples as they relate to these estimates. The of fund balance (GAAP); (b) certain items, e.g., following is a brief overview of the measurement principal expense and capital outlay are recorded as focus and basis of accounting. expenditures for budgetary purposes as opposed to adjustments of the appropriate balance sheet All governmental fund types are accounted for accounts (GAAP); (c) depreciation is recorded as using the modified accrual basis of accounting. an expense (GAAP) at year-end. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets.

Primary revenues, including property taxes, special assessments, intergovernmental revenues and charges for services, are treated as susceptible to accrual under the modified accrual basis. Other revenue sources are not considered measurable and available, and are not treated as susceptible to accrual. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) prin- cipal and interest on general long-term debt which is recognized when due; (2) accumulated sick pay and accumulated vacation pay, which are not

ADOPTED BUDGET FISCAL YEAR 2007-08 20 CITY OF NORTH LAS VEGAS

FINANCIAL POLICIES

The Finance Department developed the following well managed financially and maintained in sound financial policies to help City Council and fiscal condition. management view their approach to financial management from an overall, long-range vantage • To adhere to the highest accounting and manage- point. ment policies as set by the Government Finance Officers' Association, the Governmental Accounting Unlike private entities, there are no "bottom line" Standards Board, and other professional standards profit figures that assess the financial performance of for financial reporting and budgeting. the City, nor are there any authoritative standards by which City officials can judge themselves. Instead, Operating Management Policies City Council and management work together to set Long-Term Financial Health - All departments will goals and objectives that measure the performance and participate in the responsibility of meeting policy effectiveness of municipal programs and services. goals and ensuring long-term financial health. Future service plans and program initiatives will be devel- Financial policies can be used to establish similar oped to reflect current policy directives, projected goals and targets for the City's financial operations, so resources, and future service requirements. that the City Council and City officials can monitor how well the City is performing. Formal financial Forecasts - Balanced revenue and expenditure fore- policies provide for a consistent approach to fiscal casts will be prepared to examine the City's ability to strategies and set forth guidelines to measure financial absorb operating costs due to changes in the economy, performance and future budgetary programs. service demands, and capital improvements. The fore- cast will be updated quarterly, focus on a three-year The following pages contain policy frameworks in the horizon, but include a five-year outlook. following areas: Alternatives to Current Service Delivery - (1) General Financial Goals Alternative means of service delivery will be evalu- (2) Operating Management ated to ensure that quality services are provided to our (3) Revenues citizens at the most competitive and economical cost. (4) Budget and Expenditures (5) Capital Management Departments, in cooperation with the City Manager, (6) Debt Management will identify all activities that could be provided by (7) Reserves another source and review options/alternatives to (8) Financial Reporting current service delivery. The review of service delivery alternatives and the need for the service will General Financial Goals be performed annually or on an "opportunity" basis. • To ensure delivery of an adequate level of municipal services by assuring reliance on ongoing resources Cash and Investments - Cash and Investment and by maintaining an adequate financial base. programs will be maintained in accordance with the • To ensure that the City is in a position to respond to City Charter and the adopted investment policy will changes in the economy or new service require- ensure that proper controls and safeguards are ments without an undue amount of financial stress. maintained. City funds will be managed in a prudent and diligent manner with an emphasis on • To maintain a good credit rating in the financial safety of principal, liquidity, and financial return on community and assure taxpayers that the City is principal in that order.

ADOPTED BUDGET FISCAL YEAR 2007-08 21 CITY OF NORTH LAS VEGAS

Revenue Policies Operating Budget and Expenditure Policies Dedication of Revenues - Revenues will not be dedi- Balanced Budget - The operating budget must be cated for specific purposes unless required by law or balanced with current revenues, which may include generally accepted accounting practices (GAAP). All beginning balances less required reserves as established non-restricted revenues will be deposited in the General by City Council. ( See current funding basis below) Fund and appropriated by the budget process. Budget Augmentations - The budget process is Financial Stability - Current revenues will fund current intended to weigh all competing requests for City expenditures and a diversified and stable revenue resources, within expected fiscal constraints. Requests system will be developed to protect programs from for new, ongoing programs made outside the budget short-term fluctuations in any single revenue source. process will be discouraged.

Utility and Golf User Fees - Enterprise (Water, Appropriations requested after the original budget is Wastewater, and Golf Course) user fees and charges adopted will be approved only after consideration of the will be examined on a cyclical basis to ensure that they elasticity of revenues. Such appropriations will be recover all direct and indirect costs of service and be approved by the City Manager. approved by the City Council. Any unfavorable balances in cost recovery will be highlighted in budget Budget Development - Budget development will use documents. Rate adjustments for enterprise operations strategic multi-year fiscal planning, conservative will be based on two to three-year fund plans. revenue forecasts, and modified zero-base expenditure analysis that requires every program to be justified Non-Enterprise Charges for Services - All non-enter- annually in terms of meeting intended objectives. The prise user fees and charges will be examined on a process will include a diligent review of programs by cyclical basis to determine the direct and indirect cost of staff, management and City Council. service recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be Addition of personnel will only be requested to meet approved by the City Council. program initiatives and policy directives. After service needs have been thoroughly examined and it is deter- Grants - Grant funding will be considered to leverage mined that additional staffing will result in increased City funds. Inconsistent and/or fluctuating grants should revenue or enhanced operating efficiencies or service not be used to fund ongoing programs. Programs levels to the extent feasible, personnel cost reductions financed with grant monies will be budgeted in separate will be achieved through attrition. cost centers and the service program will be adjusted to reflect the level of available funding. In the event of Current Funding Basis - Current operating expendi- reduced grant funding, City resources will be substituted tures will be paid from current revenues and fund only after all program priorities and alternatives are balance carried forward from the prior year, after considered during the budget process. reserve requirements are met. The City will avoid budgetary and accounting practices that balance the Credit and Collections - The City will follow current budget at the expense of future budgets. an aggressive and consistent policy of collecting revenues to the limit of our ability. The collection Maintenance and Replacement Funding - A multi- policy goal will be for all adjusted uncollectible year maintenance and replacement schedule will be accounts to be no more than .5 of 1% of the total City developed and updated based on the City's projections revenue being adjusted for bad debts annually. of its future replacement and maintenance needs. The operating budget will provide for adequate maintenance and future replacement of the City's capital, plant and equipment.

ADOPTED BUDGET FISCAL YEAR 2007-08 22 CITY OF NORTH LAS VEGAS

Capital Management Policies Debt Capacity - An analysis showing how the new Capital Improvement Plan Development - A five- issue combined with current debt impacts the City's year Capital Improvement Plan (CIP) will be devel- debt capacity and conformance with City debt policies oped and updated annually, including anticipated will accompany every future bond issue proposal. funding sources. Capital improvement projects are defined as infrastructure or equipment purchases or General Obligation Debt - General Obligation Debt, construction that results in a capitalized asset costing which is supported by property tax revenues and more than $25,000 and having a useful (depreciable grows in proportion to the City's assessed valuation life) of two years or more. and/or property tax rate increases, will be utilized as authorized by voters. Other types of debt may also be The CIP will include, in addition to current operating utilized when they are supported by dedicated revenue maintenance expenditures, adequate funding to sources (e.g., fees and user charges). support repair and replacement of deteriorating infra- structure and avoidance of a significant unfunded General Obligation Debt issuances will be managed liability. on an annual basis to match funds to Capital Improvement Plan cash flow requirements while being Proposed capital projects will be reviewed and priori- sensitive to the property tax burden on citizens. tized by a cross-departmental team regarding accurate cost (design, capital, and operating) and overall Local Improvement District (LID) Bonds - It is consistency with the City's goals and objectives. intended that LID bonds will be primarily issued for Financing sources will then be identified for the neighborhoods desiring improvements to their prop- highest-ranking projects. erty such as roads, water lines, sewer lines, street- lights, and drainage. LID bonds will be utilized only Future operating, maintenance, and replacement costs when it is expected that they will be issued for their associated with new capital improvements will be full term. forecasted, matched to available revenue sources, and included in the Operating Budget. Capital project Interest on Bond Proceeds - Bond interest earnings contract awards will include a fiscal impact statement will be limited to funding changes to the bond disclosing the expected operating impact of the project financed Capital Improvement Plan, as approved by and when such cost is expected to occur. City Council, or be applied to debt service payment on the bonds issued for construction. Pay-as-you-go Capital Improvement Plan financing should account for a minimum of 25% of all capital Debt Coverage Ratios - Utility rates will be set, as a improvement projects for each five-year planning minimum, to ensure the ratio of revenue to debt period. Pay-as-you-go financing is defined as all service meets bond ordinance requirements. The City sources of revenue other than City debt issuance, i.e., goal will be to maintain a minimum ratio of utility fund balance contributions, developer contributions, revenue to debt service of 2.0 or greater, to ensure grants, endowments, etc. debt coverage in times of revenue fluctuations attribut- able to weather or other causes, and to ensure a Debt Management Policies balanced pay-as-you-go Capital Improvement Plan. Improved Bond Ratings - The City will seek to maintain and, if possible, improve our current bond rating in order to minimize borrowing costs and preserve access to credit.

ADOPTED BUDGET FISCAL YEAR 2007-08 23 CITY OF NORTH LAS VEGAS

Reserve Policies Financial Reporting Policies Undesignated and Designated Fund Balance - All Accounting and Reporting Methods - The City's fund designations and reserves will be evaluated annu- accounting and financial reporting systems will be ally for long-term adequacy and use requirements in maintained in conformance with all state and federal conjunction with development of the City's five-year laws, generally accepted accounting principles forecast. (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the General Fund Undesignated Fund Balance - Government Finance Officers Association (GFOA). General Fund Reserves of 18.0% of annual General Fund operating expenditures will be maintained for Comprehensive Annual Financial Report (CAFR) - unforeseen emergencies or catastrophic impacts to the The City's CAFR will be submitted to the GFOA City. Reserve funds in excess of 18.0 % may be used Certification of Achievement for Excellence in for non-recurring emergency capital expenditures or Financial Reporting Program. The financial report dedicated to the Capital Improvement Plan. The should be in conformity with GAAP, demonstrate following criteria must be met to qualify any portion compliance with finance related legal and contractual of the General Fund surplus for these purposes: provisions, disclose thoroughness and detail suffi- ciency, and minimize ambiguities and potentials for • There are surplus balances remaining after all misleading inference. The audit opinion will be reserves and fund allocations are made. included with the City's CAFR.

• An analysis has occurred assuring that the City has Distinguished Budget Awards Program - The City's an adequate level of short and long-term resources Budget will be submitted to the GFOA Distinguished to support the proposed use of surplus balances. Budget Presentation Program for Fiscal 2008. The City was honored in receiving the GFOA • The funds are specifically appropriated by the Distinguished Budget Award for the third consecutive City Council. year for its Fiscal Year 2007 submission, and receiving two special recognition awards: Outstanding as a Utility Reserves - Water and Wastewater Communications Device (second consecutive award) Replacement Reserve will be maintained to ensure and Outstanding as a Policy Document. The budget adequate funding for infrastructure deterioration should satisfy criteria as a financial and programmatic repair. A minimum requirement of 2% of all tangible policy document, a comprehensive financial plan, an assets of the system will be maintained per bond ordi- operations guide for all organizational units and a nance requirements. communications device for all significant budgetary issues, trends, and resource choices. Water and Wastewater Unrestricted Fund Balance goal will be 25% of annual expenditure requirements for Internal Controls - Financial systems will maintain unforeseen emergencies or catastrophic impacts to the internal controls to monitor revenues, expenditures, City's water and wastewater enterprise operations. and program performance on an ongoing basis.

Self-Insurance Reserves - Self-Insurance Reserves Fiscal Monitoring - Monthly financial reports will will be maintained at a level, which, together with present actual expenditures vs. budget on a monthly purchased insurance policies, will adequately indem- and cumulative basis. Major revenue sources will be nify the City's property, liability, workers compensa- monitored on a monthly basis, noting the status of tion risk, and compensated absences liability. A quali- each revenue source as compared to budget. fied actuarial firm shall be retained on an annual basis in order to recommend appropriate funding levels, A quarterly report will be presented to city manage- which will be approved by Council. ment - indicating the status of actual revenues and expenditures as compared to the budget on a quarterly and cumulative basis, and will note any actions neces- sary to maintain the City's financial position.

ADOPTED BUDGET FISCAL YEAR 2007-08 24 CITY OF NORTH LAS VEGAS

DEBT MANAGEMENT Long Term Debt Obligations revenue bonds is to be repaid by the earnings from As the demand for public sector investment in the operations of a revenue-producing enterprise or infrastructure continues to grow, the issuance of from special taxes. debt will become an increasingly important component of the city's capital programs. While General Obligation Bonds - Medium Term the issuance of debt is frequently an appropriate Financing and Long Term Debt method of financing capital projects, it entails The maximum term of a medium-term bond is ten careful monitoring of such issuances to ensure that years, whereas the minimum term of a long-term an erosion of the city's credit quality does not bond is more than ten years. The City utilizes both result. In June 2005, Standard & Poor’s Rating medium- and long-term lengths of financing for its Service and Moody’s Investors Service upgraded capital projects. As indicated above, general obli- the City’s general obligation bond rating from “A” gation bonds constitute direct and general obliga- to “A+” and from “A2” to “A1” respectively. tions of the city and the full faith and credit of the Additionally, in May 2006, the City received a city is pledged for the repayment of principal and bond rating increase of “AA” from Fitch Ratings. interest payments, subject to Nevada constitutional and statutory limitations regarding the city's oper- Various types of securities are used to issue debt. ating ad valorem levy. The ad valorem tax levy Features of a security include its purpose, length of available to repay these bonds is limited to the financing, and the source of funds for repayment. city's maximum operating levy of $0.1901. The ad Two general types of security are pledged to repay valorem tax rate available to pay the bonds is local government debt and these categories define further limited by the limitation on the combined the types of bonds that are issued. (i.e., general overlapping tax rate of $3.64 per $100 of assessed obligation or revenue). The city utilizes both types valuation. of securities to generate capital for financing construction and/or improvement of major fixed The repayment of principal and interest payments on assets, such as the improvement of streets and the city's medium-term bonds and long-term bonds roads and/or key city facilities. is payable from the General Fund operating revenues, or any other legally available funds. General obligation bonds are supported by the full There is no direct impact on the ad valorem tax rate. faith and credit of the issuing jurisdiction. A local government, for example, pledges unconditionally Bonds Secured by Pledged Revenues to pay the interest and principal on the debt as it Nevada State statutes allows for up to 15% of the comes due. This implies that all unrestricted public Consolidated Tax Distribution (CTX) revenue to be revenues will be used to meet the debt service, pledged as security for the payment of principal including whatever level of property tax within the and interest on bonds. As such, the city has three jurisdiction is necessary to retire the debt. outstanding general obligation bond issues that are additionally secured with revenues derived from Revenue bonds are debt instruments that are retired the city's portion of the Consolidated Tax Revenue. by specified dedicated revenues often generated by an activity or a project funded out of the debt proceeds. Revenue bonds are designed to be self- supporting through user fees or other special earmarked receipts; the general taxing powers of the jurisdiction are not pledged for retirement of the debt. The debt created through the issuance of

ADOPTED BUDGET FISCAL YEAR 2007-08 25 CITY OF NORTH LAS VEGAS

General Obligation/Revenue the City's maximum operating levy of $1.1637. Bonds Secured by Consolidated The maximum term of a medium term bond is ten Tax Revenue (CTX) years. State statutes allow for up to 15% of the CTX to be pledged as security for debt. The Consolidated The ad valorem tax rate available to pay the bonds Tax Bonds are general obligation bonds addition- is further limited by the limitation on the combined ally secured with revenues derived from the City's overlapping tax rate of $3.64 per $100 of assessed portion of the Consolidated Tax Revenue. valuation. The bonds are a debt of the City and the City shall pledge all legally available funds of General Obligation Bond Indebtedness- the City for their payment. Medium Term Bonds Medium term bonds constitute direct and general The principal and interest on medium term bonds obligations of the City, and the full faith and credit is payable from the general fund operating of the City is pledged for the payment of principal revenues or any legally available funds. There is and interest, subject to Nevada constitutional and no direct impact on the ad valorem tax rate. The statutory limitations regarding the City's operating following table sets forth the City's outstanding ad valorem levy. The ad valorem tax levy avail- medium term bonded indebtedness as of able to pay the medium term bonds is limited to June 30, 2008.

ADOPTED BUDGET FISCAL YEAR 2007-08 26 CITY OF NORTH LAS VEGAS

General Obligation Medium Term Debt Supported by Various Funding Sources As of June 30, 2008 Original Amount Retirement Issue Issue Date Amount Outstanding Date Funding Source(s)

Recreation Center Bonds 04/01/00$ 5,000,000 $ 1,220,000 03/01/10 Street, Fire and Parks Tax Override Fund Library District Bonds 06/01/04 5,000,000 3,530,000 06/01/14 Library District Revenues

Street, Fire & Parks and Public Safety Tax Building Projects Bonds 03/23/06 55,000,000 45,560,000 03/01/16 Override Funds; Special AV Transportation Total$ 65,000,000 $ 50,310,000

General Obligation Indebtedness Secured by Consolidated Tax Revenue (CTX) As of June 30, 2008 Original Amount Retirement Issue Issue Date Amount Outstanding Date Funding Source Judicial/Public Safety Design Bonds 05/01/02$ 2,500,000 $ 2,000,000 05/01/22 General Fund Consolidated Tax Revenue Judicial/Public Safety Facilities Bonds 03/01/03 32,500,000 27,565,000 03/01/23 General Fund Consolidated Tax Revenue City Hall Facility Bonds 05/17/06 105,000,000 105,000,000 05/01/36 General Fund Consolidated Tax Revenue Total$ 140,000,000 $ 134,565,000

General Obligation/Revenue Bonds Secured by Water and Wastewater Revenue The water and wastewater bonds are general obligation bonds additionally secured with pledged revenue from the City's Water and Wastewater Utility Funds. Pledged revenue consists of revenue received by the City from the sale and distribution of water, the collection, transmission and treatment of wastewater, connection charges, or otherwise derived from the works or property of the City after payment of reasonable and necessary costs of the operation and maintenance expenses of the City's water and wastewater systems. The following table sets forth the City's outstanding water and wastewater revenue supported bonded indebtedness as of June 30, 2008.

General Obligation Debt Supported by Water and Wastewater Revenue Projected As of June 30, 2008 Amount Retirement Issue Issue Date Original Amount Outstanding Date Water & Wastewater Bonds 07/01/99 $15,000,000 $1,345,000 08/01/09 Water & Wastewater Refunding Bonds 09/08/03 704,000 572,000 10/01/12 Water Refunding Bonds 11/25/03 8,685,000 4,455,000 11/01/15 Water & Wastewater Refunding Bonds 5/17/2005A 14,365,000 14,365,000 12/01/17 Water & Wastewater Refunding Bonds 7/1/2005B 10,030,000 10,030,000 08/01/19 Wastewater Reclamation System Bonds 12/31/06 140,000,000 140,000,000 12/31/36 Water & Wastewater Refunding Bonds 03/02/07 5,713,000 5,672,000 09/01/14 Total $194,497,000 $176,439,000

ADOPTED BUDGET FISCAL YEAR 2007-08 27 CITY OF NORTH LAS VEGAS

General Obligation Bond The City does not currently have authorization Indebtedness - Ad Valorem Bonds from its electorate to issue general obligation Ad valorem bonds constitute direct and general bonds. However, the City reserves the privilege obligations of the City, and the full faith and of issuing bonds or other securities at any time credit of the City is pledged for the payment of legal requirements are satisfied. The following principal and interest, subject to Nevada constitu- table sets forth the City's outstanding general tional and statutory limitations on the aggregate obligation bonded indebtedness supported by ad amount of ad valorem taxes. valorem taxes as of June 30, 2008.

General Obligation Debt Supported by Ad Valorem Taxes As of June 30, 2008 Original Amount Retirement Issue Issue Date Amount Outstanding Date Street Improvement Bonds 12/01/95 $3,000,000 $1,465,000 06/01/15 Street Improvement Refunding Bonds 05/01/02 4,915,000 2,970,000 05/01/14 Jail Refunding Bonds 01/01/04 7,465,000 3,360,000 04/01/11 Total $15,380,000 $7,795,000

Debt Capacity 2008 estimated assessed valuation, the City is Section 7.010 of the City Charter limits the aggre- limited to general obligation indebtedness in the gate principal amount of the city's general obliga- aggregate amount of $1,792,205,817. The tion debt to 20% of the City's total reported following table illustrates the city's general obli- assessed valuation. Based upon the fiscal year gation statutory debt limitation.

Statutory Debt Limitation As of June 30, 2008

Assessed Valuation as of March 15, 2007 1/ $8,961,029,085 City Charter Limit 20% Statutory Debt Limitation $1,792,205,817

Outstanding General Obligation Indebtedness Supported by Ad Valorem Taxes $7,795,000 Supported by Consolidated Tax Revenue 134,565,000 Supported by Water & Wastewater Revenues 176,439,000 Supported by General Fund and Other Legally Available Revenues 2/ 52,777,900 Total Outstanding Indebtedness $371,576,900

Permitted Additional Statutory Debt Limitation $1,420,628,917

1/ Includes the city's RedevelopmentAgency 2/ Excludes the Library DistrictBonds

ADOPTED BUDGET FISCAL YEAR 2007-08 28 CITY OF NORTH LAS VEGAS

Historical Statutory Debt Limitation As of June 30, 2008

Fiscal Year Ended Outstanding General Additional Statutory June 30 Assessed Valuation1/ Debt Limitation Obligation Debt2/ Debt Capacity 2002 2,094,280,786 418,856,157 85,405,000 333,451,157 2003 2,430,813,229 486,162,646 111,995,000 374,167,646 2004 2,786,327,439 557,265,488 105,854,000 451,411,488 2005 3,369,487,416 673,897,483 102,494,000 571,403,483 2006 4,863,589,059 972,717,812 128,375,000 844,342,812 2007 7,021,149,876 1,404,229,975 377,966,000 1,026,263,975 2008 8,961,029,085 1,792,205,817 371,576,900 1,420,628,917

1/ Includes the assessed value of the North Las Vegas Redevelopment Agency. This value is included for purposes of calculating the debt limit but is not subject to State or local taxation for retirement of general obligation bond debt. 2/ Excludes Library District

Debt Service Requirements Fiscal 2008

Principal Interest Total Debt Secured by Ad Valorem Taxes$ 1,695,000 $ 358,820 $ 2,053,820 Debt Secured by Consolidated Tax Revenue 1,390,000 6,621,352 8,011,352 Debt Supported by General Fund and Other Legally Available Revenues 6,255,000 2,221,440 8,476,440 Subtotal 9,340,000 9,201,612 18,541,612 Debt Support by the Library District 505,000 181,575 686,575 Debt Supported by Special Assessment Installments (GF) 755,300 242,842 998,142 Debt Supported by Water Utility Revenues 2,910,800 1,785,526 4,696,326 Debt Supported by Wastewater Utility Revenues 284,200 6,634,007 6,918,207

Total 13,795,300 18,045,562 31,840,862

ADOPTED BUDGET FISCAL YEAR 2007-08 29 CITY OF NORTH LAS VEGAS

Outstanding Indebtedness Projected as of June 30, 2008

Category of Bonds 2004 2005 2006 2007 2008

General Obligation Water and Wastewater Revenue Bonds$ 49,514,000 $ 45,529,000 $ 42,510,000 $ 179,634,000 $ 176,439,000 General Obligation Consolidated Tax Revenue Bonds 34,900,000 33,620,000 137,305,000 135,955,000 134,565,000 General Obligation Ad Valorem Bonds 16,075,000 12,730,000 11,135,000 9,490,000 7,795,000 General Obligation Medium-Term Bonds 5,095,000 5,570,000 63,822,011 57,070,000 50,310,000 Special Improvement Assessment District Bonds 3,290,800 2,956,100 2,612,000 6,753,200 5,997,900

Total$ 108,874,800 $ 100,405,100 $ 257,384,011 $ 388,902,200 $ 375,106,900

Debt Ratio Comparisons as of June 30, 2006 General General Obligation Total General 2006 Official Fiscal Year 2007 Obligation Debt as a % Obligation Population Assessed Debt Per of Assessed Municipality Debt1/ Estimates2/ Valuation3/ Capita Valuation Henderson$ 413,155,053 251,321$ 15,947,429,061 $ 1,643.93 2.59% Las Vegas 321,429,558 579,840 24,596,473,788 554.34 1.31% North Las Vegas 252,747,000 198,516 8,961,029,085 1,273.18 2.82% Reno 141,996,464 214,371 6,437,304,944 662.39 0.49% Sparks 45,081,069 87,846 2,359,316,697 513.18 1.91%

1/ State of Nevada Annual Local Government Indebtedness as of June 30, 2006 2/ State of Nevada Demographer's Office 2006 Certification Estimates 3/ State of Nevada Department of Taxation FY 2006-2007

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The following table summarizes the City’s existing and proposed debt service expenses over the next five years.

Summary of Debt Service Requirements Fiscal 2007 to Fiscal 2011

Issue 2008 2009 2010 2011 Date Issue 2007 Budget Projected Projected Projected Projected

General Obligation Bonds 1995 Street Bonds$ 250,700 $ 253,100 $ 249,900 $ 251,300 $ 252,100 2002 Street Refunding Bonds 603,200 602,600 600,600 607,100 606,600 2004 Jail Refunding Bonds 1,199,200 1,198,200 1,196,600 1,193,850 1,190,250 Subtotal $2,053,100 $2,053,900 $2,047,100 $2,052,250 $2,048,950

General Obligation Revenue Bonds 1997 Water & Wastewater Improvement & Refunding Bonds 1,163,100 870,350 1998 Water & Wastewater Improvement Bonds 733,100 736,750 1999 Water & Wastewater Bonds 705,500 706,000 704,800 706,900 2003A Water & Wastewater Refunding Bonds 28,000 27,800 27,700 28,500 198,700 2003B Water Refunding Bonds 1,205,550 1,202,700 1,212,200 604,200 604,450 2005A Water & Wastewater Refunding Bonds 718,250 718,250 1,883,400 1,882,150 1,887,650 2005B Water & Wastewater Refunding Bonds 377,600 377,600 377,600 377,600 1,204,000 2002 Judicial/Public Safety Facility Design Bonds 201,700 197,400 198,700 199,600 200,100 2003 Judicial/Public Safety Facilities Bonds 2,577,300 2,586,100 2,582,350 2,594,300 2,580,300 2006 City Hall Facility Bonds 4,705,100 5,228,000 5,783,000 6,025,200 6,299,000 2006 Wastewater Reclamation System Bonds 3,230,000 6,569,500 6,569,500 9,055,700 9,030,600 2007 Water & Sewer Refunding 261,500 666,500 1,273,500 1,107,500 Subtotal $15,645,200 $19,481,950 $20,005,750 $22,747,650 $23,112,300

General Obligation Medium-Term Bonds 1998 Street Bonds 501,200 501,200 1998 Housing Relocation Bonds 495,000 495,450 2000 Recreation Center Bonds 652,600 650,850 657,900 657,500 2006 Building Projects Bonds 6,882,000 6,829,050 6,810,750 6,808,350 6,808,150 Subtotal $8,530,800 $8,476,550 $7,468,650 $7,465,850 $6,808,150

Special Improvement Assessment District Bonds 2002 Assessment District No. 58 (Craig Road I) 301,950 297,550 302,450 301,500 304,500 2003 Assessment District No. 59 (Craig Road II) 158,300 158,300 158,300 158,250 158,350 2007 Assessment District No. 61 (Ann Road) 390,500 392,200 392,200 392,100 2007 Assessment District No. 62 (Clayton Street) 151,900 152,550 152,550 152,500 Subtotal $460,250 $998,250 $1,005,500 $1,004,500 $1,007,450 Total Debt Service - City $26,689,350 $31,010,650 $30,527,000 $33,270,250 $32,976,850

Library District General Oblgation Medium-Term Bonds 2004 Library District Bonds $687,500 $686,600 $683,850 $685,250 $685,500

Total Library District Debt Service Requirements $687,500 $686,600 $683,850 $685,250 $685,500

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