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HomeMy WebLinkAboutCity of Henderson - Public Financial Report2021 Popular Annual Financial Report City of Henderson, Nevada | For Fiscal Year Ended June 30, 2021 1City of Henderson, Nevada Popular Annual Financial Report For Fiscal Year Ended June 30, 2021 City Management Dan H. Stewart John F. Marz Councilman Ward IV Councilman Ward III Dan K. Shaw Debra March Michelle Romero Councilman Ward II Mayor Councilwoman Ward I Stephanie Garcia-Vause Assistant City Manager/Chief Strategy Officer Bristol S. EllingtonDeputy City Manager/Chief Operating Officer Richard A. DerrickCity Manager/CEO Robert HerrAssistant City Manager/ Chief Infrastructure Officer 2 City of Henderson, NevadaCity of Henderson, Nevada2 Presented herewith is the Popular Annual Financial Report (PAFR) for Fiscal Year 2021. This document presents a summary of the City’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2021. The ACFR is presented in conformance with Generally Accepted Accounting Principles (GAAP) and was audited by BDO USA, LLP, a firm of licensed certified public accountants. The ACFR contains the City’s financial information in more depth and presents the full disclosure of all financial and non-financial events. The ACFR, as well as other City financial, budget, and strategic plan reports, can be found on the City of Henderson website at https://www.cityofhenderson.com/government/departments/finance. The PAFR is a condensed presentation of the ACFR, and provides high-level financial information and selected statistical information cited in the ACFR. This presentation is intended to provide the citizenry of Henderson, and other interested parties, a better understanding of the financial workings of the City of Henderson. As such, the PAFR is intended to simplify, but not to replace the ACFR. It is important for citizens and taxpayers to know and understand the composition of the revenue received by the City, as well as how the City manages those resources. We take our fiscal responsibility seriously and understand fully that we are accountable to the residents of our great city. We will continue to strive to provide the services our community desires in an efficient manner while maximizing the use of the resources available. Prepared By: Finance Department Budget Division David Weiser, Budget Manager City of Henderson 240 South Water Street Henderson, NV 89015 702-267-1770 cityofhenderson.com Overview Table Of Contents 3City of Henderson, NevadaCity of Henderson, Nevada 3 Table Of Contents Introduction Overview ...............................................................................................................................2 Table of Contents ..................................................................................................................3 Financial Reporting Award ....................................................................................................4 City Organization Chart .......................................................................................................5 Strategic Plan ........................................................................................................................6 Executive Summary ...............................................................................................................7 Statistical Community Profile ..............................................................................................................8 Recreation and Attractions ....................................................................................................9 City of Henderson Demographics .......................................................................................10 Property Tax .......................................................................................................................11 Population and Assessed Valuation ......................................................................................12 Financial Fund Overview ...................................................................................................................13 Governmental Funds ...........................................................................................................14 Proprietary Funds ................................................................................................................15 General Fund - Revenue by Source .....................................................................................16 General Fund - Expenditures ..............................................................................................17 Debt Outstanding ...............................................................................................................18 Statement of Net Position ...................................................................................................19 Glossary Glossary of Terms ................................................................................................................20 4 City of Henderson, NevadaCity of Henderson, Nevada4 Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to City of Henderson Nevada For its Annual Financial Report for the Fiscal Year Ended 2020 Executive Director/CEO Organization ChartFinancial Reporting Award The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Henderson for its Popular Annual Financial Report for the fiscal year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Henderson has received a Popular Award for the last four consecutive years. 5City of Henderson, NevadaCity of Henderson, Nevada 5 Organization Chart Economic Development & Tourism Internal Audit Oce of Performance & Innovation Lorem ipsum Citizens of Henderson Mayor & Council City Manager/ Chief Executive Ocer City Attorney Deputy City Manager/Chief Operating Ocer Chief Infrastructure Ocer/ Assistant City Manager Chief Strategy Ocer/ Assistant City Manager Finance Government & Community Relations Community Development & Services City Clerk Municipal Court Redevelopment Agency Public Works Parks and Recreation Information TechnologyFire Human Resources Police Utility Services Emergency Management, Environmental Health & Safety Oce of Public Aairs M Title VI Coordinator Financial Reporting Award 6 City of Henderson, NevadaCity of Henderson, Nevada66City of Henderson, Nevada Strategic Plan Executive Summary The Strategic Plan is available on the City’s website or by contacting the City Manager’s Office. The City’s Fiscal Year 2019-2023 Strategic Plan has identified the following key priorities: • Community Safety • Livable Communities • Economic Vitality • High-Performing Public Service • Quality Education Community Safety The City of Henderson is committed to keeping every member of the community safe, which is why the City is repeatedly listed among the top 10 Safest Cities in the nation by nationally recognized publications including Money Magazine. From police, fire, emergency and environmental services staff to the community and traffic engineers – each plays a role in community safety. Moreover, in order to attain our goal of being a premier community, the City must leverage technology, community, and capital resources to design a resilient strategy capable of preventing, preparing for, mitigating, responding to, and recovering from emergencies and disasters – both natural and human-made. Livable Communities The City of Henderson prides itself on being a welcoming, connected, and vibrant community, intentionally designed to offer a range of housing choices, a clean environment, easy access to transportation, outstanding municipal services, healthcare, and a host of recreational amenities and cultural events. The City is committed to maintaining these community characteristics while extending our reach into areas that require a greater inclusive presence. Economic Vitality The City of Henderson remains a welcoming business environment that is committed to the continued growth of our established businesses and to attracting new opportunities. As economic growth continues, our goals do not solely rely on fiscal sustainability, but also on adaptability in the face of future economic, political, technological or demographic changes. Commitment to the principal goal of economic competitiveness requires an emphasis on economic diversity, foresight, workforce development and recruitment, as well as continuance of expected high levels of service to citizens. High-Performing Public Service The City of Henderson’s vision is “To Be America’s Premier Community.” To realize this vision, the City must be accountable, transparent, efficient and responsive to its residents, while also fully engaging its employees to provide premier services. Although the City is proud of its reputation for outstanding customer service, citizen satisfaction rate, and employee engagement rate, it is dedicated to advancing the processes and technology required to further exceed resident expectations. Quality Education The City of Henderson residents consistently rank education a top community priority and have responded by actively supporting student achievement at our local schools. The City's goal has been for public schools in our community to improve and preserve educational facilities, increase technology resources and pre‐kindergarten skills assessments as well as provide for enhanced curriculum, learning specialist positions and special education assistants. The City also actively partners with community representatives and nonprofit organizations to further educational outcomes and is committed to sustaining involvement in our children’s education. City of Henderson, NevadaCity of Henderson, Nevada Strategic Plan Current State of Affairs The City of Henderson is located in the southeastern part of Clark County, Nevada. With a population of over 300,000, Henderson is the second largest city in the State of Nevada. The City provides a full range of services including police and fire protection; municipal court; detention facilities; water and sewer services; the construction and maintenance of boulevards; streets and other public infrastructure; recreational facilities and activities; cultural events; and a municipal golf course. Located just seven miles from the famous Las Vegas Strip, the City of Henderson is known throughout the nation for its premier master planned residential communities, outstanding parks and recreational facilities, cultural activities, and business community. The City maintains 25 active Governmental Funds, including the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds as well 12 Proprietary Funds, including Enterprise Funds and Internal Service Funds. The total revenue excluding other financing sources (e.g. debt proceeds, land sales, etc.) and transfers-in for Governmental Funds for Fiscal Year 2021 was $418.3 million. Of this amount, the General Fund represented $297.3 million, or 71% of the total revenue. The City’s Proprietary Funds generated $230.7 million in operating and $8.5 million in non- operating revenue. The General Fund is the largest of the City’s funds and comprises most of the core functions for the City including, General Government, Judicial, Public Safety, Public Works, Culture & Recreation, and Community Support. The General Fund expenses for Fiscal Year 2021 totaled $272.3 million of which were 60% Public Safety, 19% General Government, and 14% Culture & Recreation. As of June 30 2021, the total City assets exceeded its liabilities by $2.71 billion (net position). Looking Ahead to Fiscal Year 2022 The City's General Fund is highly dependent on consolidated tax (primarily consisting of sales taxes) and property taxes. The COVID-19 Pandemic resulted in the imposition of restrictions on mass gatherings, widespread temporary closings of businesses, and has largely halted international travel. The initial economic impacts of these restrictions were devastating to the economy in Southern Nevada, which is largely dependent on tourism. However, with the large-scale vaccination efforts in the United States underway and the reopening of businesses, The City is cautiously optimistic that the worst of the economic impacts of the COVID-19 Pandemic are over. As municipal stewards, it is essential that the financial integrity of the City is maintained regardless of the effects of outside forces and economic conditions. Value driven City initiatives which contributed to the development of the Fiscal Year 2022 budget include: • Commitment to Public Safety, with approximately 58% of General Fund expenditures dedicated to Public Safety. • Maintains financial resiliency in the General Fund with an anticipated ending fund balance of 8.5% of General Fund revenue. • Maintains one of the lowest city property tax rates in the State with $0.7708 of $100 of assessed value. • Provides premier public services while maintaining one of the lowest employee to citizen ratios in the Las Vegas Valley. Executive Summary 7 City of Henderson, Nevada8 Community Profile Recreation and Attractions Incorporated in 1953, the City of Henderson received its charter in 1965 from the Nevada State Legislature. The City charter established a council/manager form of government, in which the Mayor and Council are vested with the legislative power of the City and the City Manager is responsible for executive duties and administration of the City. The Mayor and four City Council members are elected at large on a nonpartisan basis, although no two council members can be from the same ward of the City's four wards. The Council appoints a City Manager, City Attorney, and City Clerk who directly report to the Council. All other City department heads, including the Police Chief and the Fire Chief, are hired by the City Manager. o p California Nevada Nevada Boulder CityMunicipalAirport McCarranInternationalAirport NellisA.F.B. NorthLas VegasAirport ToLaughlin ToPhoenix ToSalt Lake City ApexIndustrial Area ToReno Arizona Boulder City Henderson North Las Vegas LasVegas "The Strip" §¨¦215 §¨¦15 §¨¦15 §¨¦515 §¨¦515 £¤95 £¤93 £¤95 £¤93 §¨¦11 HendersonExecutiveAirport Jean Sloan Primm HooverDam Blue Diamond Lake MeadNationalRecreation Area Map of Henderson and Surrounding Area 8 City of Henderson, Nevada Key Statistics Median Age 42.2 Median Household Income $74,147 Median Home Value $405,000 Sales Tax Rate 8.375% Elevation 1,940 Full-Service & Specialty Hospitals 6 Public Libraries 4 Schools Elementary 27 Middle 7 High 6 Colleges & Universities 10 9City of Henderson, Nevada Community Profile Recreation and Attractions 9City of Henderson, Nevada Recreation Centers: 8 Including the Heritage Park Senior Facility and the largest multigenerational center in the state City Parks: 67Including the Henderson Bird Viewing Preserve, skate park at Anthem Hills Park, and 16 Splash Pads Ball Fields/Multi-Use Fields: 105 Including one of the largest multi-use sports complexes in the state Tennis Courts: 58Many lighted Public Pools: 13In 7 locations,including 3 aquatic complexes Golf Courses: 106 Public | 1 Municipal | 3 Private TrailsMore than 180 linear miles of bicycle and pedestrian trails Hotels & Resorts Offering gaming, shows, concerts, fine dining, spas, and luxury accommodations Water Street DistrictCultural arts, events plaza, art galleries, shopping, and dining Major ShoppingGalleria at SunsetMonteLago Village at Lake Las Vegas Resort The District at Green Valley Ranch City of Henderson, Nevada10 Demographics Property Tax 89002 89011 89012 89014 89015 89044 89052 89074 Population 38,442 30,639 36,822 41,686 43,020 27,803 59,240 53,706 Household Income Less than $15,000 5.0% 8.7% 6.2% 7.3% 11.9% 9.7% 6.1% 5.3% $15,000 ‐$24,999 5.0% 5.0% 6.1% 10.0% 10.8% 8.8% 4.3% 5.3% $25,000 ‐ $34,999 5.4% 7.8% 7.1% 10.2% 7.6% 9.4% 7.5% 6.3% $35,000 ‐ $49,999 10.6% 12.2% 10.4% 12.6% 12.6% 13.7% 10.2% 13.0% $50,000 ‐ $74,999 18.7% 18.9% 15.9% 20.6% 22.0% 18.7% 15.8% 18.1% $75,000 ‐ $99,999 17.2% 12.2% 15.0% 14.6% 13.4% 13.7% 12.9% 17.0% $100,000 ‐ $149,999 22.3% 17.6% 19.1% 13.3% 13.1% 14.9% 19.0% 18.0% $150,000 ‐ $199,999 9.3% 8.2% 8.8% 6.3% 5.4% 5.8% 10.1% 7.9% $200,000 and Over 6.3% 9.2% 11.4% 5.0% 3.1% 5.4% 14.2% 8.9% Average Household $97,492 $101,139 $108,312 $79,692 $70,121 $116,447 $85,021 $99,082 Median Household $82,778 $70,129 $81,992 $61,194 $56,569 $89,012 $120,942 $76,422 Age Under 18 28.2% 18.9% 19.9% 21.2% 22.3% 19.0% 20.6% 19.3% 18‐24 7.2% 8.9% 6.0% 8.5% 7.2% 2.7% 5.4% 6.1% 25‐34 11.2% 14.4% 12.4% 15.7% 13.4% 9.3% 11.0% 15.6% 35‐44 14.0% 15.1% 13.8% 14.2% 11.6% 13.8% 13.2% 13.2% 45‐54 15.4% 13.1% 13.8% 13.8% 13.7% 9.4% 12.5% 14.2% 55‐64 11.1% 14.9% 12.5% 13.3% 14.1% 15.2% 12.5% 13.6% 65+12.8% 14.9% 21.4% 13.9% 17.6% 30.6% 24.9% 18.0% Average Age 38.0 39.0 42.8 39.4 40.2 47.0 44.2 42.4 Median Age 37.3 39.1 44.1 38.1 39.6 51.5 46.4 42.4 Housing Units Total 13,704 12,828 15,159 17,515 16,419 12,620 25,467 21,974 Types of Dwelling Single Family 81.2% 76.2% 67.7% 45.2% 70.9% 88.6% 70.8% 59.8% Condominium 0.0% 8.1% 4.3% 10.5% 2.7% 0.2% 8.3% 8.8% Townhome 8.3% 6.7% 7.1% 8.1% 3.4% 8.0% 3.7% 8.1% Plexes (2‐4)0.0% 0.8% 0.0% 0.0% 2.2% 0.0% 0.4% 1.6% Mobile Home 2.2% 1.1% 0.0% 0.1% 2.9% 0.4% 0.0% 1.7% Apartment 8.2% 6.9% 20.6% 36.4% 17.7% 2.7% 16.6% 20.0% Henderson Zip Codes Note: Henderson also has small portions of 89183 & 89124 and there are small areas outside of Henderson in 89052, 89074, & 89011. Source: United States Census Bureau American Community Survey & Henderson Community and Services Department. 11City of Henderson, Nevada Demographics Property Tax The City receives only 25 percent of your property tax dollars. A home with a taxable value of $400,000 will provide the equivalent of $86.43 per month in property tax support for City of Henderson services, including: • 24-Hour Police Protection • 24-Hour Emergency Medical Service • 24-Hour 9-1-1 Service • Maintained Streets, Lighting and Flood Control • Recreational Programming for All Ages • Parks Operations and Maintenance • Code Enforcement Services • Comprehensive Land-Use Planning FY 2021 State 0.1700$       Clark County Operating 0.6541         School District     Operating 0.7500              Debt 0.5534                Sub‐total School District 1.3034         City of Henderson     Operating 0.6208              Debt 0.1200                Sub‐total City 0.7408         Special Districts     Henderson Library District 0.0608                Sub‐total Special Districts 0.0608         Total Property Tax Rate 2.9291$       Note: Tax rates stated per $100 of assessed valuation. Source: Nevada Department of Taxation Property Tax Rates for Nevada local governments. Overlapping Property Tax Rate Breakdown $0.74  $0.96  $1.06  $1.16  Henderson Reno Las Vegas* North Las Vegas Property Tax Rate Comparison  Fiscal Year 2021 Note: Tax rates per $100 of assessed valuation.*Includes Las Vegas Portion of Las Vegas Metropolitan Police. City of Henderson, Nevada12 Population * Includes Las Vegas portion of the Las Vegas Metropolitan Police and the Las Vegas Valley Water District. Employment reported April 2021. Information for Fiscal Year 2021 and prior provided by the Nevada State Demographer. Information for Fiscal Year 2022 provided by the City of Henderson Community Development Department. Fund Overview 20 9 , 4 8 6   21 7 , 4 4 8   22 9 , 9 8 4   24 1 , 1 3 4   25 1 , 3 2 1   26 0 , 1 6 1   26 9 , 5 3 8   26 7 , 6 8 7   26 7 , 2 7 0   26 4 , 8 3 9   26 6 , 8 4 6   27 4 , 2 7 0   28 0 , 9 2 8   28 7 , 8 2 8   29 4 , 3 5 9   30 0 , 7 0 9   31 0 , 2 4 4   31 7 , 6 6 0   32 2 , 8 0 0   33 2 , 2 5 8   FY  20 0 3 FY  20 0 4 FY  20 0 5 FY  20 0 6 FY  20 0 7 FY  20 0 8 FY  20 0 9 FY  20 1 0 FY  20 1 1 FY  20 1 2 FY  20 1 3 FY  20 1 4 FY  20 1 5 FY  20 1 6 FY  20 1 7 FY  20 1 8 FY  20 1 9 FY  20 2 0 FY  20 2 1 FY  20 2 2 Es t i m a t e Population as of July 1 of each fiscal year 11.0 7.9 6.6 6.3 4.5 City of Boulder City City of Las Vegas* City of Mesquite City of Henderson City of North Las Vegas Number of Full‐Time Employees (per 1,000 residents) 13City of Henderson, Nevada Population Fund Overview Total Expense ‐ All Funds* $676,177,686 Governmental Funds Proprietary Funds** $438,228,681 $237,949,005 General Fund Special Revenue Debt Service Capital Projects Internal Service Enterprise Funds $272,312,679 $94,724,667 $13,325,878 $57,865,457 $68,256,225 $169,692,780 Grant Fund Special Assessment Municipal Facilities Engineering Water $47,174,873 $6,507 $1,604,509 $9,253,809 $90,003,851 Redevelopment  Agency Ad Valorem Special Recreation City Shop Sewer $16,926,572 $13,319,371 $5,527,850 $11,592,193 $51,525,612 Gas Tax Park Development Self Insurance Development Services $7,003,617 $764,314 $4,297,299 $20,825,092 Forfeited Assets Capital Replacement Worker's Compensation Cultural Arts & Tourism $309,443 $12,536,072 $10,416,103 $4,652,693 Muni Court  Admin Fees Special Assessment Health Insurance Municipal Golf Course $367,866 $2,791,447 $19,480,814 $2,685,532 Sales & Use Tax Land Sales Citywide $16,513,196 $4,033,480 $13,216,007 Commissary Bond Proceeds $19,910 $30,607,785 Eldorado Valley $197,002 Crime Prevention Modified Accrual Basis of Accounting $3,764,080 NID Full Accrual Basis of Accounting $16,365 *Includes Redevelopment Agency Rec., Cultural & Tourism **Excludes non‐operating expenses $2,431,743 City of Henderson, Nevada14 Governmental Funds Proprietary Funds FY 2020 FY 2021 Beginning Fund Balance 264,016,915$             339,809,860$              Revenue Property Taxes 99,826,025                 111,720,780                Franchise Fees 33,741,224                 31,865,215                  Licenses and Permits 12,806,382                 14,588,735                  Intergovernmental Resources 163,594,535               219,856,813                Charges for Services 27,245,566                 22,794,123                  Fines and Forfeits 4,500,781                   4,354,813                    Impact Fees 1,831,958                   2,204,865                    Investment Income 6,503,137                   205,244                        Room Taxes 2,210,635                   1,799,180                    Developer Contributions 1,560,220                   3,991,395                    Residential Construction Tax 817,894                       1,649,294                    Miscellaneous 4,121,814                   3,294,484                    Total Revenues*358,760,171$             418,324,941$              Other Financing Sources Gain (loss) on Capital Asset Disposition ‐$                             22,231$                        Capital Leases 151,556                       459,153                        Debt Issuance Proceeds 74,512,894                 ‐                                Issuance of Refunding Bonds 68,702,106                 ‐                                Premium on Refunding Bonds Issued 5,675,415                   ‐                                Proceeds from Land Sales 3,367,490                   200,623                        Transfers In 24,292,313                 31,908,793                  Total Other Financing Sources 176,701,774$             32,590,800$                Total Revenue & Other Financing Sources 535,461,945$             450,915,741$              Total Resources 799,478,860$             790,725,601$              Expenditures by Function General Government 72,875,665$               77,137,293$                Judicial 12,011,682                 12,075,700                  Public Safety 192,850,091               195,343,953                Public Works 18,521,280                 25,123,274                  Culture and Recreation 52,945,638                 97,340,948                  Community Support 4,518,814                   17,230,872                  Debt Service 13,323,773                 13,976,641                  Total Expenditures**367,046,943$             438,228,681$              Other Financing Uses Operating Transfers Out 24,281,402$               30,426,576$                Payment to Refunded Bond Escrow Agent 68,340,655                 ‐                                Total Expenditures & Other Financing Uses 459,669,000$             468,655,257$              Ending Fund Balance (EFB)339,809,860$             322,070,344$              Total Commitments and EFB 799,478,860$             790,725,601$              **Total expenditures increased $71.2 million year over year primarily due to large capital projects from bond issuance proceeds  received in Fiscal Year 2020. Additional increases in expenditures related to one‐time grant funding for pandemic relief. *Total revenues increased $59.6 million year over year primarily due to record federal stimulus which drove an increase in  consolidated taxes, sales taxes, and one‐time capital grants and contributions. 15City of Henderson, Nevada Governmental Funds Proprietary Funds FY 2020 FY 2021 FY 2020 FY 2021 Revenues Utilities Fees 124,909,267$       135,073,204$       ‐$                        ‐$                         Connection Fees 1,604,011              2,330,939              ‐                          ‐                           Late Charges 1,211,730              1,066,324              ‐                          ‐                           Charges for Services 14,861,156            15,751,594            61,871,071            69,893,697             Licenses and Permits 6,190,461              5,804,416              ‐                          ‐                           Intergovernmental 527,213                 478,560                 ‐                          ‐                           Miscellaneous 269,679                 284,551                 ‐                          ‐                           Total Operating Revenues 149,573,517$       160,789,588$       61,871,071$         69,893,697$          Operating Expenses Salaries and Wages 32,639,462$         33,734,652$         7,429,076$            7,488,438$             Employee Benefits 17,103,462            15,938,855            3,879,566              3,637,628               Water Purchases 27,725,838            31,847,289            ‐                          ‐                           Services and Supplies 58,412,175            62,514,395            23,529,445            25,100,585             Claims and Judgements ‐                          ‐                          19,492,680            27,070,862             Legal Fees ‐                          ‐                          31,240                   35,312                    Depreciation & Amortization 25,646,260            25,657,589            4,232,535              4,923,400               Total Operating Expenses 161,527,197$       169,692,780$       58,594,542$         68,256,225$          Operating Income (Loss)(11,953,680)$        (8,903,192)$          3,276,529$            1,637,472$             Nonoperating Revenues (Exp.) Investment Income 6,250,221$            202,681$               1,915,353$            68,603$                  Gain (Loss) on Capital Asset (400,834)                (115,296)                343,919                 457,229                  Interest Expense (3,594,524)            (6,399,361)            (13,400)                  (9,455)                     Sales Tax Revenue 5,666,777              6,154,189              ‐                          ‐                           Intergovernmental 7,709                      664,932                 ‐                          625,351                  Gain on Transfer of Liabilities 488,896                 ‐                          ‐                          ‐                           Bond Issuance Costs (948,079)                ‐                          ‐                          ‐                           Miscellaneous 11,501                   15,589                   338,458                 331,744                  Total Nonoperating Revenues (Exp.)7,481,667$            522,734$               2,584,330$            1,473,472$             Income (Loss)(4,472,013)$          (8,380,458)$          5,860,859$            3,110,944$             Capital Contributions Capital Contributions 26,100,088$         33,957,365$         5,064,929$            4,489,573$             Transfers Operating Transfers In 415,946                 150,000                 7,000,000              150,000                  Operating Transfers Out (6,939,385)            (1,562,217)            (487,472)                (220,000)                 Change in Net Position 15,104,636$         24,164,690$         17,438,316$         7,530,517$             Net Position, Beginning of Year 1,097,619,591$    1,112,724,227$    51,987,102$         69,425,418$          Net Position, End of Year 1,112,724,227$    1,136,888,917$    69,425,418$         76,955,935$          Enterprise Funds Internal Service Funds City of Henderson, Nevada16 General Fund Revenue General Fund Expenditures * Percentage represents proportion to total General Fund revenue. Increase in the proportional share of Intergovernmental Revenues in Fiscal Year 2021 is primarily due to one-time Federal Grant revenue related to COVID-19 Pandemic relief. FY 2020 % of  Total FY 2021 % of  Total Beginning Fund Balance 33,981,675$           27,165,660$            Revenues Property Taxes 73,136,498$           27% 80,992,884$           27% Franchise Fees 33,741,224              12% 31,865,215              11% Licenses and Permits 12,806,382              5% 14,588,735              5% Intergovernmental Resources 117,307,632           43% 140,570,172           47% Charges for Services 26,713,716              10% 22,500,307              8% Fines and Forfeits 3,755,908                1% 3,296,133                1% Impact Fees 1,831,958                <1% 2,204,865                <1% Investment Income 779,015                   <1% 107,444                   <1% Miscellaneous 3,077,593                1% 1,135,452                <1% Total Revenues 273,149,926$         100% 297,261,207$         100% Other Financing Sources Transfers In ‐$                          15,641$                    Gain (loss) on Capital Asset Disposition ‐                            950                            Capital Lease Proceeds 151,556                   459,153                    Total Other Financing Sources 151,556$                 475,744$                  Total Revenue & Other Financing Sources 273,301,482$         297,736,951$          Total Resources 307,283,157$         324,902,611$          25%24%24%24%24%27%27% 42%42%44%43%44%43% 47% 33%33%32%33%32%30% 25%  $‐  $50,000  $100,000  $150,000  $200,000  $250,000  $300,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 General Fund Revenue Primary Sources 7 Year Trend* ($ amounts in thousands) Property Tax Intergovernmental Other 17City of Henderson, Nevada General Fund Revenue General Fund Expenditures *Excluding other financing sources & uses (e.g. operating transfers out). **The excess of revenues over expenditures in Fiscal Year 2021 is a result of the City's outstanding efforts to implement cost saving measures in response to the COVID-19 Pandemic, including a hiring freeze for vacant positions, and not paying cost of living adjustments to employees, along with better than expected revenue results within intergovernmental revenues, which include consolidated tax and Federal Grants. FY 2020 % of  Total FY 2021 % of  Total Expenditures by Function General Government 50,091,068$           19% 51,073,738$           19% Judicial 11,453,584              4% 11,584,210              4% Public Safety 157,358,706           59% 164,163,176           60% Public Works 7,075,026                3% 6,364,044                2% Culture and Recreation 37,878,361              14% 37,550,378              14% Community Support 1,232,442                <1% 1,577,133                <1% Total Expenditures 265,089,187$         100% 272,312,679$         100% Other Financing Uses Operating Transfers Out*15,028,310$           22,374,459$            Total Expenditures & Other Financing Uses 280,117,497$         294,687,138$          Ending Fund Balance (EFB)27,165,660$           30,215,473$            Total Commitments and EFB 307,283,157$         324,902,611$          *General fund operating transfers out for Fiscal Years 2020 and 2021 were primarily made to the City's capital projects funds for the acquisition or  construction of major capital facilities. $231,075 $240,080 $247,628  $266,119  $282,252  $273,150  $297,261  $215,225  $228,372  $235,463  $246,122  $259,437 $265,089 $272,313   $200,000  $220,000  $240,000  $260,000  $280,000  $300,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21** General Fund Revenue and Expenditures 7 Year  Trend* ($ amounts in thousands) Total Revenue Total Expenditures City of Henderson, Nevada18 Outstanding Debt Statement of Net Position FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 General Obligation Bonds 169,285,000$    161,135,000$    ‐$                     ‐$                     169,285,000$    161,135,000$     Tax Allocation Bonds (RDA)8,420,000           8,155,000           ‐                       ‐                       8,420,000           8,155,000            Water and Sewer Bonds ‐                       ‐                       205,296,772      200,396,462      205,296,772      200,396,462       Other 435,429              1,273,822           322,874              ‐                       758,303              1,273,822            Total 178,140,429$    170,563,822$    205,619,646$    200,396,462$    383,760,075$    370,960,284$     Governmental Activities Business‐type Activities Total Summary Principal Interest Principal Interest For the Year Ending June 30,  2022 5,078,311$         6,887,053$         8,200,000$         4,659,501$          2023 5,296,792           6,666,624           8,455,000           4,407,716            2024 5,142,337           6,438,443           8,740,000           4,119,362            2025 5,377,337           6,208,853           8,975,000           3,887,268            2026 5,427,337           6,117,918           9,405,000           3,707,619            2027‐2031 29,264,348         28,704,718         47,975,000         15,351,539          2032‐2036 31,540,000         24,538,695         41,730,000         9,452,922            2037‐2041 33,985,000         19,336,200         27,655,000         2,888,050            2042‐2046 40,575,000         12,738,400         ‐                       ‐                        2047‐2051 38,710,000         3,947,000           ‐                       ‐                        Total 200,396,462$     121,583,904$     161,135,000$     48,473,977$        Principal Interest Principal Interest For the Year Ending June 30,  2022 275,000$             341,925$             148,311$             ‐$                      2023 290,000               327,800               ‐                       ‐                        2024 305,000               312,925               ‐                       ‐                        2025 320,000               297,300               ‐                       ‐                        2026 335,000               280,925               ‐                       ‐                        2027‐2031 1,955,000           1,131,100           ‐                       ‐                        2032‐2036 2,395,000           694,301               ‐                       ‐                        2037‐2041 2,280,000           187,000               ‐                       ‐                        Total 8,155,000$         3,573,276$         148,311$             ‐$                      *Other Long‐Term Obligations exclude capital lease payments of $1,125,511. Future Debt Service Requirements Revenue Bonds General Obligation Bonds Tax Allocation Bonds Other Long‐Term Debt Obligations* 19City of Henderson, Nevada Outstanding Debt Statement of Net Position  $‐  $500  $1,000  $1,500  $2,000  $2,500  $3,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Historical Net Position ($ amounts in millions) Governmental activities Business‐type activities FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 Assets Current, Restricted and     Other 515,015,842$       554,002,942$       349,457,046$       343,400,351$       864,472,888$       897,403,293$        Capital Assets 1,698,920,811      1,795,881,309      1,021,642,619      1,044,548,829      2,720,563,430      2,840,430,138       Total Assets 2,213,936,653$    2,349,884,251$    1,371,099,665$    1,387,949,180$    3,585,036,318$    3,737,833,431$     Deferred Outflows Deferred Outflows     of Resources 87,294,564$          76,388,636$          15,858,880$          13,976,375$          103,153,444$       90,365,011$           2,301,231,217$    2,426,272,887$    1,386,958,545$    1,401,925,555$    3,688,189,762$    3,828,198,442$     Liabilities Current 27,136,313$          27,064,532$          14,060,879$          10,913,555$          41,197,192$          37,978,087$           Other 700,926,204          743,366,018          306,587,153          303,543,333          1,007,513,357      1,046,909,351       Total Liabilities 728,062,517$       770,430,550$       320,648,032$       314,456,888$       1,048,710,549$    1,084,887,438$     Deferred Inflows Deferred Inflows     of Resources 37,330,358$          28,153,160$          5,093,303$            3,640,839$            42,423,661$          31,793,999$           765,392,875$       798,583,710$       325,741,335$       318,097,727$       1,091,134,210$    1,116,681,437$     Net Position Net Investment in     Capital Assets 1,599,479,735$    1,682,426,162$    937,997,632$       949,960,187$       2,537,477,367$    2,632,386,349$     Restricted 235,164,250          211,507,733          10,330,257            5,697,756              245,494,507          217,205,489           Unrestricted (deficit)(298,805,643)        (266,244,718)        112,889,321          128,169,885          (185,916,322)        (138,074,833)         Total Net Position 1,535,838,342$    1,627,689,177$    1,061,217,210$    1,083,827,828$    2,597,055,552$    2,711,517,005$     Governmental Activities Business‐type Activities Total Total Assets & Deferred     Outflows of Resources Total Liabilities & Deferred     Inflows of Resources The City's net position increased by $114.4 million in Fiscal Year 2021. Net Position from Governmental activities increased largely due to higher than anticipated levels of consolidated taxes and sales taxes, along with increased property taxes, and capital grants and contributions, in addition to cost mitigation efforts to curb expenses during the COVID-19 Pandemic. Net Position from Business-type activities increased as a result of increased charges for services. 20 City of Henderson, Nevada Glossary of Terms Accounts Payable - Items the City owes to individuals and companies who supply a service or good, and the expected payment is within twelve months. Assessed Valuation - A valuation set upon real estate or other property by a government as a basis for levying taxes - 35% of market value. Bond - A written promise to pay a specified sum of money at a fixed time in the future, and carrying interest at a fixed rate, usually payable periodically. Capital Assets - Assets including land, improvement to land, easements, building, vehicles, infrastructure, and all other tangible or intangible assets that are used in operations and have initial useful lives that extend beyond a single reporting period. Capital Projects Funds - Capital Projects Funds are governmental funds used to account for financial resources to be used for the acquisition or construction of major capital facilities. Consolidated Tax - Compilation of sales, cigarette, liquor, personal property transfer, basic city county relief tax, supplemental city county relief tax, government services tax and motor vehicle privilege tax revenues that are distributed by the state. Deferred Inflow of Resources - An acquisition of net position by the government that is applicable to a future reporting period. Deferred Outflow of Resources - A consumption of net position by the government that is applicable to a future reporting period. Enterprise Funds - Enterprise Funds are proprietary funds used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed and recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expense incurred, and/ or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Fiscal Year - A 12-month period designated as the operating year for accounting and budgeting purposes in an organization; the City has a fiscal year from July 1 – June 30. Fund Balance - The excess of the assets of a fund over its liabilities, reserves and carryover. General Fund - A fund established to account for resources and costs of operations associated with the City which are not required to be accounted for in other funds. General Obligation Bond - Bonds that finance a variety of public projects such as streets, buildings and improvements; the repayment of these bonds is usually made from the debt portion of property taxes, and these bonds are backed by the full faith and credit of the issuing government. Governmental Funds - Funds generally used to account for tax- supported activities. These include the general fund, special revenue funds, debt service funds and capital projects funds. Governmental Activities - Combination of Governmental Funds and Internal Service funds for presentation in the government-wide financial statements and are reported using the economic resources measurement focus and the accrual basis of accounting. Internal Service Funds - Internal Service Funds are proprietary funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Intergovernmental Resources - Funds received from federal, state and other local government sources in the form of grants, shared revenues and payments in lieu of taxes. Operating Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services of the recipient fund. Other Assets - Include categories such as accounts receivable, inventories, prepaid items, land held for resale, and amounts owed from other governments. Other Liabilities - Include amounts due to other entities, unearned revenues, deposits, interest, contract retention, and tax increments payable to developers. Pooled Cash and Investments - The amount of physical cash held by the City in checking accounts and on hand for purposes of paying expenses. Investments are made up of funds not needed to pay current expenses and allows the City to earn interest on its cash. Resources - Total amounts available for appropriation including projected revenues, fund transfers, bond proceeds and beginning fund balances. Restricted - The amount of assets or resources limited for a specific purposes. Revenue-Supported Bonds - Bonds usually sold for constructing a project that will produce revenue for the government; that revenue is pledged to pay the principal and interest of the bond. Special Revenue Funds - Special Revenue Funds are governmental funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Unrestricted - The difference between assets and liabilities that are not already limited for a specific purpose, i.e. restricted. Debra March Mayor John F. Marz Councilman Michelle Romero Councilwoman Dan K. Shaw Councilman Dan H. Stewart Councilman Richard A. Derrick City Manager/CEO Bristol S. Ellington Deputy City Manager/ Chief Operating Officer Stephanie Garcia-Vause Assistant City Manager/ Chief Strategy Officer Robert Herr Assistant City Manager/ Chief Infrastructure Officer Jim McIntosh Chief Financial Officer CITY OF HENDERSON 240 S. Water St. | Henderson, NV 89015 cityofhenderson.com