Lower tax revenues trend blamed for shortfall

Further details regarding the status of the county’s worsening financial position were presented at the Nye County Board of Commissioners meeting on Tuesday.

News of the county’s budget shortfall, a possible additional $1 million to $1.8 million atop a previously announced $800,000 deficit, was first announced by County Manager Pam Webster at the Dec. 2 commission meeting.

While a variety of factors can be attributed to the current approximate $2 million deficient in revenue for Nye County, personal property and consolidated tax projections are likely large factors, according to county officials.

At Nye County’s last meeting for the 2014 calendar year, Comptroller Amy Fanning cited both budget line items as “red flags.”

Webster told county commissioners that she had reviewed the previous three years of consolidated taxes. “And we are right at the same place we would expect to be at this time of the year,” she said.

Fanning said that if the trend continues, based on the first three months of the fiscal year, there will be a $1 million dollar shortfall in the consolidated tax line.

Another trending shortfall comes under the personal property tax line. In 2014, Fanning said $2.7 million was budgeted, but only $1.6 million collected.

Commission Chairman Dan Schinhofen asked administration staff how that figure was derived and why it has come up short.

Webster clarified that the figure is provided by the Nevada State Department of Taxation; and that department is provided with figures by the Nye County Assessor.

Webster said more information will be available when final bill amounts are provided by the assessor. However, she said, December figures will not be available until April.

“We are looking to get a final billed amount to get a more solid feeling of what the number is,” she said.

Webster said three years of consolidated tax revenue have been reviewed and, she said, according to the trend, the county is where it would expect to be at this time of the year.

The county is where it is expected to be at this time of the year based upon the past three fiscal years, according to Webster.

But, she cautioned, “If that’s holding true, we are not going to generate what we thought.”

Webster said administration will take a “strong” look at the issue in January.

Schinhofen said he hoped to get some of the long overdue PILT (payment in lieu of taxes) monies owed Nye County by the federal government, which would help offset the shortfall. The county has yet to receive any of the $2,898,375 budgeted as revenue from the federal government.

Commissioner Lorinda Wichman said that the federal funding has been approved and budgeted, though Nye County District Attorney, Brian Kunzi, said the county should not expect any federal payments this fiscal year.

Optimistically, Wichman asked if there was a possibility that that was an error in the reporting. Webster responded, “We pray that the figures that went to the state are correct and, in fact, that our bills will reflect what we budgeted.”

Webster said that sales tax was also budgeted on previous levels with a projection of continued growth, which has not happened.

Real property tax was another problematic line item. Webster said $5 million in revenue was budgeted under real property tax, however, only $4 million has been billed.

“I don’t know if there is a problem with real property tax. We haven’t been able to nail that down, but we hope to shortly,” she said.

Following the meeting, Commissioner Lorinda Wichman, explained that county finances have spiraled downward following a devaluation of property that began in 2008.

Though property owners saw a benefit in the devaluation from lowered property tax; the county has been forced to operate with less revenue.

The county is encumbered by an annual three-percent property tax cap which has not been able to recapture pre-housing market decline revenue.

Wichman said the county will continue to move toward remedying its finances.