Challenging (budget) forecast ahead

Have you ever called for emergency services in Boulder City? Did you know that on medical calls, the fire department typically sends two or more first responders? The American Heart Association recommends one responder manages the patient’s airway; another monitors cardiac activity; another is responsible for administering medication; and two provide cardiopulmonary resuscitation (CPR) or lift assists as needed. On a heart attack or stroke, up to six responders may be needed.

Our firefighters and paramedics are available 24 hours a day, seven days a week, and respond to a wide variety of emergencies over 212-square miles of land within the city’s boundaries. In addition, the city’s population is getting older; approximately 47% of Boulder City’s residents are 55 years of age and older; 30% of residents are over 65, which is significantly higher than the national average.

The fire department has a minimum staffing of seven responders on duty with two emergency rescue teams available. Many patients need specialized care from hospitals in Henderson or Las Vegas, and responders are required by law to take them to the hospital they request. According to Fire Chief Kenneth Morgan, at least five times a week, both duty crews are tied up on calls, requiring mutual aid from Community Ambulance.

In light of these needs, the fire department has recommended adding a second fire station to meet standard response times in all areas of the city. In order to build a second station, the city needs to hire staff to operate it. Preliminary cost estimates for the building, vehicles, equipment, salaries and benefits are estimated in the range of $10 million. Despite challenging fiscal times, we must begin laying the groundwork now to ensure that we have the resources to meet current and future needs.

Boulder City residents receive a wide range of high-quality municipal services, from public safety and utilities to public works and parks and recreation. Our residents also enjoy the lowest property taxes in the state. Our expected revenue for fiscal year 2027 (July 1, 2026-June 30, 2027) is $45.7 million, which is $4.2 million less than we will spend. Those funds will mostly come from these sources:

■ Property tax - $2 million

■ Licensing and Permits - $3.4 million

■ Fees for Services -$5.6 million

■ Consolidated Tax (C-Tax) – $15.4 million

■ Rents and Royalties (primarily land leases) - $17.2 million

The amount of Consolidated Tax (“C-Tax”) we receive is based on a formula for statewide distribution of sales tax, liquor tax, cigarette tax government services tax (motor vehicle registrations) and other taxes. When consumer spending is down, the amount of C-Tax we receive is negatively impacted. Revenues from permitting and city services also fluctuates. Notably, more than a third of the city’s revenue comes from land leases for solar and other uses on city-owned desert land south of I-11.

This year, consistent with the city’s Strategic Plan, staff has worked diligently to deliver a balanced budget.

Retaining qualified, highly trained staff is important to any business organization, and this is especially true for a service-delivery organization like municipal government. Of course, this comes at a cost. Overall, wages and benefits will comprise 70% of citywide expenses in FY2027. Public Safety comes in even higher at 90% of expenses in wages and benefits. There has been significant belt-tightening in the budget: labor negotiations are ongoing, no new positions will be created next year, and deliberate collaboration between departments to reduce proposed spending reduced annual expenses by more than $600,000. In the end, we are still left an initial $4.2 million gap, and we have adopted a multi-prong strategy to address this shortfall. Fortunately, the city has a modest general fund balance and other one-time resources that we can use to cover one-time (non-recurring) expenses in the upcoming fiscal year. While these funds are available in the general fund today, continued fiscal restraint will ensure that we don’t deplete these resources.

Over the next three years, the best-case scenario forecasts that current revenues will remain stagnant. Vacant land available for solar leases is limited by several factors, including infrastructure and the City Charter. Between today and the end of FY2029, our expenses will likely have outpaced revenue by $14.9 million.

Ten years ago, City Hall was embroiled in tough times, with complaints of slow response and poor customer service. Today, Boulder City has an extremely high customer service rating. Most property owners are happy with the current property tax rate. The questions remain: What can we do now? What can we do three years from now?

In the face of these challenges, staff remains optimistic about the reality of how we can streamline city operations and adapt the ways we deliver services to ensure the stability of our community and continue to enjoy a high quality of life. We now know the fiscal reality, so let’s work together and solve the problems. We are Boulder City, we know we can work together.