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Councilors press administration on free cash use and risk to property-tax relief
Summary
Councilors asked the administration for a deep review of year-end free cash and proposed using MGM/121A funds for property-tax relief; the administration warned one-time funds are not a sustainable substitute for recurring revenue and cautioned against actions that could lower bond ratings.
Councilors used the budget hearing to press for transparency about sources of free cash and how one-time funds have been used. "It feels like there's some excess in some of the budgets, and then it turns into free cash at the end of the year," one councilor said, urging a "deep dive" into the accounts that produce free cash.
Administration officials said free cash results from year-end surpluses and emphasized the risk of relying on one-time funds to lower recurring property-tax bills. The mayor warned that repeatedly using reserves or one-time revenue to reduce taxes could harm the city's bond rating and create larger fiscal obligations later.
Several councilors suggested dedicating a portion of gaming revenue (referred to in the transcript as MGM/121A funds) to property-tax relief. Administration staff noted that a history of downtown and capital investments has consumed much of those funds and that some gaming-related revenues are already committed to specific projects.
Councilors asked the administration to collaborate on a line-item review and to furnish the council with clearer explanations of free-cash sources and year-end surpluses before final budget votes.
