Las Vegas adopts fiscal 2026 city and redevelopment agency budgets; council authorizes bond authority

The Las Vegas City Council and Redevelopment Agency on May 21 approved final budgets for fiscal year 2026, authorizing the redevelopment agency’s budget and the city’s general fund and five‑year capital improvement plan and granting authority to seek bond proceeds for planned projects.

City Manager Mike Janssen said the city remains "fiscally sound," noting the council has preserved its double‑A bond rating by maintaining a 20% general fund reserve while aiming for a preferred 25% level. "Public safety remains the number 1 priority," Janssen said, and the adopted plan funds two firefighter academies, each with about 45 recruits.

The budgets tighten revenue estimates and prioritize capital work. Chief Financial Officer Susan Helsley said the city revised down a one‑time consolidated tax recognition in FY 2025 and now estimates consolidated tax (C‑tax) receipts for FY 2026 at about $424.3 million. Helsley told the council staff is requesting authority to issue up to $90 million in C‑tax bond capacity (an increase from a previously contemplated $70 million request) "to keep our fund balance at 20%" and preserve the city’s credit position.

Why it matters: the city’s FY 2026 plan balances limited revenue growth, higher retirement (PERS) costs and the ongoing Badlands settlement payments against a large capital program intended to maintain and expand public safety, parks and infrastructure. The combined all‑funds capital program for FY 2026 is about $594 million; total budgeted spending across all funds is approximately $2.3 billion.

Details: City staff said general fund revenues are projected at about $852.8 million with consolidated tax representing nearly half of that total. Helsley said consolidated tax was lower in FY 2025 after recognizing a one‑time suspense account settlement for short‑term rental remittances; that one‑time amount will not recur in FY 2026. The city projects a deficit for the current year (FY 2025) driven largely by settlement payments and a deficit again for FY 2026 before improving in later years under the current forecast. Staff cautioned the forecast remains sensitive to revenue performance and higher PERS contributions.

Capital and redevelopment agency priorities: Deputy City Manager Steve Ford outlined capital criteria emphasizing life‑safety projects, citizen service impacts and cost‑averse investments. Examples cited include a Fire Station 1 rehabilitation, a Summerlin West fire station project and a new fire training center; a municipal pool assessment; a West Las Vegas library remodel to create an art center; water‑saving turf replacement projects; and development of a well at Woodlawn Cemetery using excess water rights (Ford estimated a payback of about eight years).

The Redevelopment Agency (RDA) budget benefits from tax increment growth tied to private investment in downtown and adjacent areas. Mike Janssen and other staff described RDA funding for programs that include a $250,000 safety and security grant program (grants of $5,000 each, roughly 50 awards), assistance for event public‑safety costs, a vacant/boarded building program, and an anticipated use of about $9 million for strategic land acquisitions in redevelopment areas. Staff noted the RDA’s tax increment grew about 23.3% from FY 2024 to the FY 2026 estimate.

Staffing and operations: Helsley said the city added seven FTEs overall for FY 2026, all in special revenue or internal service funds rather than the general fund; public safety FTEs have grown faster than non‑public safety positions since 2021. Code enforcement and animal protection teams are nearing full staffing, and recruitment is underway for court marshals, deputy city marshals and corrections officers.

Public comment and council action: No members of the public spoke during the budget hearing. After the presentation and brief council remarks praising staff work and emphasizing continued focus on public safety, health care and economic development, the council voted to approve both the redevelopment agency budget and the city budget. The council will finalize the budget on June 2 and file the five‑year CIP in August; staff emphasized that only FY 2026 is binding in the published five‑year plan, with later years illustrative.

Votes at a glance — Item 4: Redevelopment Agency FY 2026 tentative and final budget — Motion to approve moved by Mayor Pro Tem; motion recorded as passed (vote recorded as "Aye" in the transcript; tally not specified). Item 5: City of Las Vegas FY 2026 tentative and final budget, including the five‑year CIP — Motion to approve moved by Mayor Pro Tem; motion recorded as passed (vote recorded as "Aye" in the transcript; tally not specified).

Next steps and risks: Staff said bond authority up to $90 million does not obligate the city to issue the full amount; issuance will depend on actual consolidated tax receipts and market conditions. City staff also noted a structural risk if revenues do not keep pace with rising pension and service costs; the budget relies in part on reserves and conservative revenue assumptions to bridge short‑term gaps.

Ending: Councilmembers commended staff for a detailed process that officials said positions Las Vegas to continue capital investments while protecting core services. The council closed the public hearing and adjourned the special joint meeting after the votes.