Despite urging from elected officials against lowering Clark County’s property tax revenue, the county council voted Tuesday to reduce its tax levy by 2 percent.
Republican Councilors David Madore and Tom Mielke voted to approve the $1.2 million reduction. Republican Councilor Jeanne Stewart voted no.
The council also approved an additional $3.57 million in general fund projects for fiscal year 2015-16, bringing Clark County’s expenditures from the general fund for the two-year budget to $301.28 million. Madore and Mielke voted to approve that additional spending; Stewart voted against it.
The additional expenditures, along with Clark County’s tax revenue cut, will force the county to dip into its general fund surplus. With current spending levels, that will bring next year’s fund balance to $21.2 million. Clark County’s policy is to keep $23 million in its general fund at all times in case of an emergency, as well as to make sure it can pay its expenses before revenue rolls in.
County Budget Director Adriana Prata said it’s too early to say what the decisions mean for the budget and what cuts may have to be made. The county finance team will meet in January to begin developing the April supplemental budget.
“We’ll have to strategize,” Prata said.
The decision comes despite warnings from Clark County elected and financial officials, who have urged the council not to pursue the tax reduction. Perhaps most memorable were Democratic Treasurer Doug Lasher’s comments that the average homeowner whose house is valued at $280,000 would save about $7.33 — or the price of two lattes.
Lasher spoke again at Tuesday’s hearing, and discouraged the council from reducing the levy.
“The suggested 2 percent reduction in the county levy is a giant step in the wrong direction,” he said.
Republican Auditor Greg Kimsey also encouraged the council to explore other options to save taxpayers money, such as reducing sales tax or following a suggestion Stewart had made to take $1.2 million from the budget to pay down debt.
“There are a number of large expenses confronting the general fund,” Kimsey said.
The Clark County board has a long history of trying to keep property taxes low. It has voted every year since 2011 not to raise property taxes at all.
Next year’s Clark County council also is slated to review a possible charter amendment, proposed by Madore, which would prevent the county from raising its tax levy by more than 1 percent in any given year without a public vote.
