douglas county financial state of the county presentation

8/12/2019 Douglas County Financial State of the County presentation

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2ndAnnual Financial

State of the County

March 10, 2014


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AgendaO Who We AreO Where We Have BeenO Where We Are GoingO ProgressO Our Greatest AssetO Challenges AheadO Spotlight Awards

2Financial State of Douglas County, March 2014


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Who We Are

Financial State of Douglas County, March 2014 3


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Douglas CountyVision: A Community to Match the Scenery

Financial Stability

Safe Community

Economic Vitality

Infrastructure

Natural Environment,Resources and CulturalHeritage

Manage Growth andChange

Strategic

Priorities:

Financial State of Douglas County, March 20144


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Douglas County Over 750 square miles

18 % of Lake Tahoe shoreline

47,000 residents

Towns (Gardnerville, Genoa & Minden)

East Fork Fire & Paramedic Districts

$163 million annual operating budget

457 full-time employees



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Douglas County

Services WeProvide:

Planning, Building, Zoning,Code Enforcement,Cooperative Extension,Senior Center, Airport,Library, Parks andRecreation, Courts, DistrictAttorney, Juvenile Care,Public Health, SocialServices, Weed Control,Animal Care, Fire Protection,Paramedic, LawEnforcement, Assessor,Clerk/Treasurer, Recorder,Economic Vitality, GeneralAdministration



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Where We Have Been



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Where We Have Been


$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

General FundExpenses vs. Revenues

as of March 2012

Revenues Expenditures

Projected Ongoing

Structural Budget Deficits

Great Recession Budget Deficits


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Solutions


$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

Douglas County General Fund

Expenses vs. Revenues

as of March 2014

Revenues Expenses

Structurally balanced

annual budgets

projected

2002-2009 Annual Avg. Growth

Revenues 5.7%

Expenses 7.5%

2010-2013 Annual Avg. Growth

Revenues 1.8%

Expenses 0.4%

Projected 2014-2019 Annual Avg. Growth

Revenues 2.3%

Expenses 2.3%


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Solutions

O Reduced personnelexpenses $1 million

O Eliminated 65 FTE

O

Reduced employeesalary and benefit

O Negotiated 3-yearcontracts withemployees tostabilize costs


-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual % Change in

Total Personnel Costs

Douglas County U.S. Private Industry U.S. State & Local Govt.

2002 to 2008 Countycosts increased 40.6

2009 to 2013County costsincreased 1.0


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SolutionsO 1stCounty to implement

Priority Based BudgetingO Engaging Policy Makers,

Employees & CommunityO Investing in Priorities:

O $1 million in existing funding to

roads (270% increase)

O Community and Senior Center

O Department Reorganizations

O Continuous Improvement

O 2014 Good Government Award



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Solutions

O 2013 - Moodys bond rating of Aa2O Third highest rating, very strong

O Achieved structural balance

O Achieved sustainable long-termresults

O 2014 - Standard and Poors upgradedbond rating from A+ to AAO Third highest rating, very strong

O First upgrade in 10 years and highestunderlying rating ever

O

Very strong management conditionsO Very strong financial practices that are

well embedded and likely sustainable

O Stable outlook


AAA Highest Quality

AA +

AA

AA -

A +

A

A -

BBB

B

CCC

C

DDD

D Lowest Quality

Douglas County Bond Rating History

Standard & Poor's

1995

199

8

2002

200

4

201

0

2012

2013

201

4

1995

199

8

2002

200

4

201

0

2012

2013

201

4


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Where We Are Going



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Economic IndicatorsO Real Gross Domestic

Product (GDP) growthwas 2.4% for 4thQuarter 2013

O GDP is the broadestmeasure of economicactivity for every majorsector of the economy

O Personal consumption

O Investment

O Net exports

O Government

The economy is growing at a moderate rate.



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O GDP price index

was 1.6% for the

4th2013

O GDP price index is

a strong indicator

of inflation

Economic Indicators

Inflation remains relatively low and stable.



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Economic Indicators

The unemployment rate is improving nationally and locally

Douglas Countys unemployment rate as of December 2013 was

9.6%, unchanged from October. This is the lowest unemployment

rate for the County since December 2008.


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Unemployment RateMonth Ended December 31

United States State of Nevada Douglas County Carson City


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Economic Indicators

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

# Sales 1321 1504 1306 878 690 569 664 687 791 927 947

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Douglas County

Residential Property Sales and Prices (Combined Lake Tahoe and Valley)

For the Calendar Year Ended December

Median Average

Residential property median sales prices and number of sales

have continued to increase in the past two calendar years.


Highest

since 2008

Highest

since

2005


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Economic Indicators

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

$900,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Douglas County Taxable Sales

Fiscal Years Ended June 30

First six

months

of Fiscal

Year2014

Positive trend in taxable sales.


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Year-to-Date taxable sales in Douglas County increase 0.4Douglas County is a receiving county we receive sales taxes collected inClark County and Washoe County (Consolidated Tax = 26 of General Fund)

Economic Indicators

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Clark Washoe Carson City Douglas

Year-to-Date

Change in Taxable Sales

Selected Nevada Counties

July - December 2013

Clark

73%

Washoe14%

Carson City

2%

Douglas

1%All Other

10%

Year-to-Date

Percentage of Total Nevada

Taxable Sales by County

July - December 2013



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Building permits are a leading indicator and have

been on a positive trend in the last two years.

Economic Indicators

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Commercial 44 42 39 16 19 8 8 8 10 7

Residential 505 537 418 153 58 46 38 35 49 108

0

100

200

300

400

500

600

Permits

Douglas County Building Permits

Calendar Year Ended December 31



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O Assessed values

decreased 29%

from 2009 to 2014

O Assessed values

are estimated to

increase 4% in

2015


Economic Indicators

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

Billions

Douglas County Assessed Value

$2.6

Bill

$3.4 Bill


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ProgressInfrastructure Investment



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ProgressCommunity Revitalization



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Progress

Community Engagement


Infrastructure

25%

Safe Community

20%

Natural Environment,

Resources and

Cultural Heritage

17%

Economic Vitality

16%

Managed

Growth and

Development

9%

Financial Stability

13%

Douglas County

Budget Challenge


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Our Greatest Asset:


High PerformingWorkforce


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Linda Doherty



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Liz Baumgartner



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Recorders Office



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Pat Brooks



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Tanya Scott



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Eric Schmidt



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911 Emergency Services



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Liz Begovich



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Pete Knight



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Debbie Beam

& Tammy Davis



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How We Get Things Done


BoardLeadership

HighPerforming

County

Workforce

Residents&

Businesses

Engaged

Clarity of Vision +Common Purpose =

Transformation


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Challenges Ahead

Invest in infrastructure

Revitalize Main Streets

Invest in a highperforming workforce

Maintain Long Term

Financial Strength



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Spotlight Awards



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Thank You!


douglas county financial state of the county presentation

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