The budgets for Clark County’s government operations in 2023 have been approved, with an “unprecedented” level of revenues through COVID-19 pandemic funds and sales tax softening the blow to the county’s coffers next year.
During its Dec. 6 meeting, the Clark County Council voted 3-2 to approve the 2023 budget alongside a number of tax increases. Across all funds, the budget was $753.5 million, about 4% more than the 2022 budget approved last December.
The approved budget includes both the statutory 1% increase and banked capacity from past deferred increases for the county general fund, the metropolitan parks district fund and the county road fund tax levies as recommended by County Manager Kathleen Otto.
Based on a median household price of $525,000, the levy increase will cost taxpayers an additional $7.19 per year for the general fund, 90 cents per year for the parks fund, and $26.55 per year for the road fund. Those increases account for about $3.8 million more in revenue.
About 40% of general fund revenue or about $76 million is property tax, Otto said, with sales tax accounting for about $60 million. At the meeting, Otto noted that American Rescue Plan Act (ARPA) funding and an unprecedented increase in sales tax revenues allowed the county to focus on balancing the budget, while not requiring an effort to specifically reduce costs.
The 2023 budget is expected to dip into the county’s general fund balance by about $7.9 million, though the balance will remain at roughly $41.6 million when required reserves are factored in, according to information presented to the council.
“There were no budget interventions this year, because we were for the first time not putting together reduction scenarios with the concern that we were not going to be balanced,” Otto said.
Otto noted the rosier picture for next year is not something that should be anticipated in subsequent years.
“We may not see that same level of sales tax coming in future years,” Otto said.
That uncertainty required a “strategic” look at ongoing expenses.
Otto said the county had a record 236 requests from different departments for budget changes. Of those, 159 were new requests. There were 171 requests which were recommended to be approved.
The 2023 budget included 7.5 more full-time equivalent permanent staff jobs.
“As our community keeps growing, our staff has not kept growing,” Otto said.
She gave an example of the county treasurer’s office, which still does not have the staffing levels it did 12 years ago.
During the meeting, councilor Gary Medvigy, who alongside council chair Karen Bowerman voted against the tax increases, acknowledged this year wasn’t as much of a strain in regard to figuring out the county finances for the next year.
“I have never seen a more solid budget,” Medvigy said.
He felt the county could avoid increasing taxes while maintaining the necessary service levels. He said deferring tax increases was as much about the message it would send to county residents as it was a fiscal calculation.
“I would say it would be irresponsible, almost mean-spirited, to raise taxes in light of the fact that we have these ARPA funds,” Medvigy said.
Councilor Julie Olson noted that cost savings have been a perennial discussion whenever budget season comes around.
“This is the first year we are not having that conversation,” Olson said.
She said sales tax was volatile and the ARPA funds would not happen again. Nearly three quarters of the expenses in the budget were for employees, which she said was an important consideration in approving the tax increases.
“Yes, we care about our constituents. We also care about our employees and we care about the facilities that are under our jurisdiction,” Olson said.
Councilor Temple Lentz voted for the tax increases alongside Olson and newly-elected councilor Sue Marshall.
“The amount of service that constituents receive for the tax dollars that they pay to Clark County is incredible, especially when you take into consideration the fact that we do have staff who are underpaid, who are overworked,” Lentz said.
