In 2008 the City of Henderson recognized key financial indicators of the economic downtown. A Five-Year Budget Model was established to help stabilize the city’s finances. The model includes revenue and expenditure projections of all major operating funds and is updated on a continuous basis.
Reduction in Expenditures
Citywide Expenditure Budget and Population
City leaders have implemented measures to protect the fiscal sustainability of the city including:
- A citywide hiring freeze
- Base budget cuts from all departments
- Reduced hours for Parks and Recreation facilities
- Travel and training restrictions
- Reductions in employee pay and benefits
- Overtime restrictions
- Reduction to non-public safety workforce by 17%
To date, Henderson has implemented nearly $120 million in budget reductions.
Reductions in employee pay and benefits*
- Eliminated vehicle allowances
- Eliminated deferred compensation match
- Reduction/elimination of holiday pay
- Reduced the number of annual holidays
- Classification and compensation study for all non-represented employees
Concession in employee compensation
- Reduction of cost of living allowances (COLA) for fire personnel in FY2009
- Elimination of COLA for police, teamsters and non-represented employees in FY2009
- Elimination of COLA for all employees in FY2010-FY2014
- Elimination of tuition reimbursement
- 2% concessions from all employees FY2013-FY2014
*Longevity pay eliminated in 1985
Henderson has one of the lowest employee to citizen ratios in the valley.
Number of Full Time Employees (per 1,000 resident)
*Includes Las Vegas portion of the Las Vegas Metropolitan Police Department and the Las Vegas Valley Water District
Reduction in Workforce
A Voluntary Employee Severance Program (VESP) was introduced in 2009 as a strategy to reduce the city’s workforce and avoid layoffs. The VESP saves the city $15.5 million annually in salaries and benefits.
The city has reduced 225 non-public safety positions or more than 17% of the workforce through the VESP and attrition.
The city’s bond rating reflects the credit industry’s confidence in the City of Henderson’s financial management and its ability to repay outstanding debt. When the city issues bonds to finance construction for new buildings or roads, a high bond rating qualifies the city to pay a lower interest rate. This equates to less financial obligation for our taxpayers.
Reduction in Revenues
Property Tax Revenue in millions
The General Fund comprises most of the core functions of the City of Henderson including General Government, Judicial, Public Safety, Public Works, Culture and Recreation, and Community Support. Henderson has experienced sharp declines in Property Tax and Consolidated Tax revenues which account for nearly 65% of the General Fund revenue. It will take many years for these revenue sources to recover.
Consolidated Tax Revenue in millions