Council hears five-year forecast showing projected deficits; members weigh reserves, property-tax shifts

Boulder City’s finance director presented a five-year general-fund forecast that projects expenses outpacing revenues in the near term unless the council either increases recurring revenue or trims ongoing expenses.

“Expenses are projecting to be greater than the incoming revenues, and that to continue into the future,” Finance Director Cynthia Snead told the council while walking through revenue and expense assumptions and a set $1.5 million annual transfer to the capital-improvement program (CIP).

Snead said staff used conservative revenue assumptions, a 3% annual labor increase scenario and a 2% annual rise in other operating costs tied to CPI. She noted recent one-time revenue windfalls (federal CARES funds and lease payments) had inflated reserve balances in prior years and cautioned the council the forecast isolates recurring operating activity.

Councilmembers pressed for longer trend lines, with one member asking for 10 years of historical data to better interpret the current surplus and its durability. Several councilmembers noted the city holds substantial restricted and voter-approved balances (risk management, revenue stabilization, vehicle-equipment replacement fund, voter-approved CIP) and debated whether some funds could be used to stabilize services or invest in capital without issuing new debt.

Snead provided a brief primer on property-tax mechanics and explained how shifting the city’s share of the combined tax allocation can increase Boulder City’s portion without changing an individual homeowner’s bill, because state and overlapping taxing-entity formulas control the total assessed dollars. Staff emphasized no property-tax increase was proposed at the meeting.

The exchange underscored two paths to close projected gaps: raise recurring revenues (including exploring local property-tax allocation changes or new land/leasing revenue) or reduce ongoing expenses. Staff said they will return with more detailed analyses and options for council consideration.

Key quantitative points discussed included the city’s current transfer plan of $1.5 million annually to CIP and historical one-time revenues (the transcript cites $1.5 million in CARES funds and other lease payments) that had increased fund balances in recent years.