Council hears update on FY 2026 budget

The months-long process of adopting a city budget for the 2026 fiscal year took another big step forward last week as Budget Director Angela Manninen presented the city council with adjustments that had been made since the preliminary budget was first presented. Fiscal year 2026 begins on July 1.

Manninen reported that city staff had met with residents and members of the utility advisory committee in budget workshops and no recommendations for changes had been made. She also reported that no changes to projected city revenue had been made since the initial special council meeting on the budget on April 15 and that the only current unknown was labor costs as negotiations with several unions representing city employees are still ongoing.

While anticipated increases have been factored into the new budget, any differences between projections and reality could be significant as nearly 65% of Boulder City’s budget is consumed by “personnel services” which includes employee salaries and benefits.

And the city appears to be hedging their bets and being even more conservative than usual when it comes to growth in personnel or “headcount.” After a number of years in which headcount has been on a strong growth upswing, the 2026 budget is only up by four-tenths of an employee.

“Parks and Rec decided to not fill an unfilled part-time PERSable position. That was a headcount of .08 and so by removing that position, our new headcount is 224.4 and that doesn’t change the budget at all by removing .8,” Manninen said.

What?

Some explanation for those who do not live and die by governmental lingo.

PERS is the Nevada Public Employee Retirement System. This is the state system that public employees pay into in lieu of Social Security. In order to qualify, an employee has to work at least 32 hours per week. So, by not filling one 32-hour-per-week position, which would have been PERS qualified (which means the city as well as the employee pay into the system), the city “saves” eight-tenths of one full-time position.

In earlier rounds of budget talks, Parks and Rec had already opted to not fill one other such position. However, the Utility Department had requested a fleet supervisor to oversee maintenance of the department’s vehicles, which was already put into the budget. Manninen also reported that two years ago, an officer position was added to the police department, which was never accounted for in the official headcount.

So, for those doing the math at home, one fleet supervisor and one cop equals an additional two on the headcount. Meanwhile, two part-time Parks and Rec positions going away equals 1.6 on the negative side. Which is how they got to an increase of four-tenths of one employee.

The other news nugget in the presentation was some discussion about utility rates.

The city did a utility study in 2023 that resulted in rates for electricity and water going up in 2024. During the 2026 fiscal year, there will be another utility study which will result in “adjusted” rates for 2027. Keep in mind that, because the city council approved a change to the wording of city code last year, electricity rates can “adjust” up, but they can’t adjust down. So, increased rates in 2027 are probably to be expected.

Manninen insinuated as much under questioning from Councilwoman Cokie Booth, who asked if utility studies are typically done every two years.

“Typically between three and five years depending on how many changes,” she said. “Our last rate study was done a little earlier at three years. This one we’re doing a little earlier too. There’s been so many changes. It’s the CIP (capital improvement) cost and many things changed since our last cycle. So it’s just time to do a new one and make sure that we’re planning correctly.”

In terms of debt, Boulder City is in better shape than most municipalities because the charter forbids taking on debt of more than $1 million without taking it to the voters. The only current debt being paid off is for a raw water line that was put in to, mostly, service Boulder Creek Golf Course.

Manninen explained where the money comes from for the city’s general fund.

“Budgeted revenues is $46.1 million and 35% of that comes from our lease revenues at $16.3 million,” she said. That lease revenue refers to the money the city takes in from the mostly solar energy operations, and one gas-fired generation facility, in the Eldorado Valley.

She continued saying, “And 33% comes from the consolidated tax at $15.3 million.” The consolidated tax or “C tax” is basically sales taxes plus tobacco and gaming taxes and a few other things generated in the state and then doled out to municipalities based on population, not on how much they generate. In other words, even though BC has no gaming, it gets a piece of the pie generated by tourists in places like Las Vegas.

Final budget steps include a public hearing at the council meeting scheduled for Tuesday of next week and then a vote at the same meeting.