In unanimously adopting a resolution Thursday to augment and amend the city’s current budget (fiscal year 2025) by approximately $210.8 million, the Board of Supervisors prepared the city for uncertain economic times, according to Chief Financial Officer Sheri Russell-Benabou.
Russell-Benabou said after the hearing the city will be able to avoid budget cuts. She addressed the large amount for the augmentation.
“Because we have so many projects that are budgeted for in (fiscal year 2024), we have to roll those forward into ’25,” she said. “Each budget is very separate. When we do the ’25 budget, we don’t take into account all the money that’s already budgeted for in ’24, so we have to take that money that is not spent in ’24 and move it into ’25 so it’s available.”
Russell-Benabou said the majority of the $210.8 million is for multi-year projects. The city’s fiscal year runs July 1 to June 30.
“We’ve bonded and received federal appropriations/grants for several projects, so these funds are waiting there to be spent on the Quill Treatment Plant, on the William Street project. There is still money sitting there as of June 30, 2024, for the new fire station and the EOC (Fire Station 55 and Emergency Operations Center). I mean right now, it’s almost done, but the unspent budget dollars as of June 30, 2024, haven’t been rolled forward,” she said.
Russell-Benabou added: “The roll-forward augmentation that we just did (Thursday) consists of additional revenues, and savings where the department head has not spent all of their budgeted FY 2024 dollars. However, consolidated taxes are coming in 2 percent below budget for FY 2025. Carson City is very conservative when budgeting for this revenue source, as it reacts with the economy and is our most volatile source of revenue.”
The resolution Thursday amended more than 30 city funds including enterprise funds like water and wastewater. The general fund, which pays for public safety and general government services, was augmented by approximately $11.9 million.
Russell-Benabou said that amount includes $1.6 million restricted by state law; $1.2 million for capital needs at the city landfill; $1 million to boost the city’s contingency fund (used for unexpected costs); $2.5 million for employee raises approved last year; and about $5.3 million recommended for the capital projects fund, which can address facility needs (estimated to be a minimum of $25 million) and deferred maintenance (estimated to be $20 million).
With consolidated taxes down the first part of the fiscal year, including sales tax revenues, Russell-Benabou told supervisors she wasn’t sure how much money there would be in the upcoming budget (fiscal year 2026) for capital projects. This led supervisors to support the $5.3 million recommended for the capital projects fund.
“In general, if we look at what is on our horizon, the right answer is to put that to capital,” said Mayor Lori Bagwell, mentioning plans for the juvenile detention facility and the city courthouse. “I think that that’s really not a lot of choice for us if we want to be able to continue on with the projects.”
Bagwell said road funding will continue to be an issue but stressed “immediate needs” of the juvenile detention facility.
“Those can cost you a lot more money in other avenues, so I look at the risk benefit,” she said. “I think it’s right to put it into the capital fund.”
Supervisor Maurice White commented: “Beyond the risk benefit, it’s just simply the right thing to do for those folks that are in that system, and for me, I’m interested in squeezing every penny out of this budget into that juvenile facility. That should be our number one priority right now.”
Supervisor Stacey Giomi commended the city for boosting the contingency fund given uncertainty around the ongoing Nevada Legislature, potential unfunded mandates and other changes.
“Because we’re not going to know some of those things until after this budget is approved. Thank you. I think you put together a wise proposal for us,” he told staff.
Russell-Benabou mentioned Washoe County is facing a deficit, and Bagwell maintained contingency funding prevents budget cuts. Bagwell also addressed changes at the federal level under the Trump administration. Specifically, she was worried about the city’s health department and transportation grants that could be impacted.
“We also have to keep top of mind any changes that are going to come down from the federal government because they’re going through changes that may or may not in the end impact us versus others,” she said.
A Jan. 27 memo from the federal Office of Management and Budget outlined a temporary freeze on federal grants and loans to make sure programs conformed to the administration’s ideological goals. After creating confusion among government officials, legal challenges and outcry from political opponents, the OMB rescinded the memo on Jan. 29.
In other action:
• Supervisors unanimously approved the Airport Authority’s 2025-30 Airport Capital Improvement Plan and grant applications to the Federal Aviation Administration for $605,000 that would require a 5 percent local match of $30,250.
The projects include drainage improvements in the runway safety area, pavement rehabilitation of the airport’s south ramp and a forecasting update in the airport’s master plan to support needed runway extension.
“Currently, aircraft taking off at the airport must often take off with less-than-ideal weight by limiting fuel or cargo on board during high density altitude conditions due to inadequate runway length. High density altitude conditions occur during hot summer days, resulting in degraded aircraft performance, and more runway length is required for safe operation,” reads a staff report.
Airport Manager Corey Jenkins told supervisors since the COVID-19 pandemic, the commercial flight industry has suffered, but private flights have increased as indicated by fuel sales.
“That means we have more business jets. We have more turboprop aircraft. They fly less often, but they do burn more fuel, and those are the aircraft that need the extended runway the most,” he said. “We’re not trying to attract any additional types of aircraft; these are the aircraft that are already using the airport today.”
• Supervisors unanimously approved a $476,096.22 IT contract for Fire Station 55 and Emergency Operations Center being built off Butti Way. The contract will set up the station for secure network connectivity in emergency responses and operations, according to the city.
The contract includes $248,755.60 for Palo Alto firewall equipment and related licenses and support; $187,539.62 for Cisco networking equipment and related licenses and support; and $39,801 for professional services from Trace3, an authorized reseller.
The $18.4 million, 18,000-square-foot facility is on track to be completed by summer, according to city officials.