2nd Annual Financial State of the County

March 10, 2014

Agenda
O Who We Are O Where We Have Been O Where We Are Going O Progress O Our Greatest Asset O Challenges Ahead O Spotlight Awards

Financial State of Douglas County, March 2014

Who We Are

Financial State of Douglas County, March 2014

Douglas County
Vision: A Community to Match the Scenery
Financial Stability Safe Community Economic Vitality Infrastructure Natural Environment, Resources and Cultural Heritage Manage Growth and Change

Strategic Priorities:

Financial State of Douglas County, March 2014

Douglas County
Over 750 square miles 18 % of Lake Tahoe shoreline 47,000 residents Towns (Gardnerville, Genoa & Minden) East Fork Fire & Paramedic Districts $163 million annual operating budget 457 full-time employees

Financial State of Douglas County, March 2014

Douglas County
Planning, Building, Zoning, Code Enforcement, Cooperative Extension, Senior Center, Airport, Library, Parks and Recreation, Courts, District Attorney, Juvenile Care, Public Health, Social Services, Weed Control, Animal Care, Fire Protection, Paramedic, Law Enforcement, Assessor, Clerk/Treasurer, Recorder, Economic Vitality, General Administration

Services We Provide:

Financial State of Douglas County, March 2014

Where We Have Been

Financial State of Douglas County, March 2014

Where We Have Been

General Fund Expenses vs. Revenues as of March 2012
$45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000

Great Recession Budget Deficits Projected Ongoing Structural Budget Deficits

Revenues

Expenditures

Financial State of Douglas County, March 2014

Solutions
Douglas County General Fund Expenses vs. Revenues as of March 2014
$45,000,000 $40,000,000

$35,000,000

Structurally balanced annual budgets projected

$30,000,000

$25,000,000

$20,000,000

Revenues

Expenses

2002-2009 Revenues Expenses

Annual Avg. Growth 5.7% 7.5%

2010-2013 Revenues Expenses

Annual Avg. Growth 1.8% 0.4%

Projected 2014-2019 Annual Avg. Growth Revenues 2.3% Expenses 2.3%

Financial State of Douglas County, March 2014

Solutions
O Reduced personnel

expenses $1 million
O Eliminated 65 FTE O Reduced employee

Annual % Change in Total Personnel Costs

12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2002 to 2008 County costs increased 40.6% 2009 to 2013 County costs increased 1.0%

salary and benefit O Negotiated 3-year contracts with employees to stabilize costs

Douglas County

U.S. Private Industry

U.S. State & Local Govt.

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Solutions
O 1st County to implement

Priority Based Budgeting Employees & Community

O Engaging Policy Makers,

O Investing in Priorities: O $1 million in existing funding to roads (270% increase)

O O O

Community and Senior Center Department Reorganizations Continuous Improvement

O 2014 Good Government Award

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Solutions
O 2013 - Moodys bond rating of Aa2 O Third highest rating, very strong O Achieved structural balance O Achieved sustainable long-term results O 2014 - Standard and Poors upgraded
Douglas County Bond Rating History Standard & Poor's
AAA AA + AA AA A+ A ABBB B CCC C DDD D Lowest Quality Highest Quality

bond rating from A+ to AA

O O

Third highest rating, very strong First upgrade in 10 years and highest underlying rating ever O Very strong management conditions O Very strong financial practices that are well embedded and likely sustainable O Stable outlook

19 95

19 98

20 02

20 04

20 10

20 12

20 13

Financial State of Douglas County, March 2014

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Where We Are Going

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Economic Indicators
O

Real Gross Domestic Product (GDP) growth was 2.4% for 4th Quarter 2013 GDP is the broadest measure of economic activity for every major sector of the economy
O O O O

Personal consumption Investment Net exports Government

The economy is growing at a moderate rate.

Financial State of Douglas County, March 2014 14

Economic Indicators
O GDP price index

was 1.6% for the 4th 2013 O GDP price index is a strong indicator of inflation

Inflation remains relatively low and stable.

Financial State of Douglas County, March 2014 15

Economic Indicators
Unemployment Rate Month Ended December 31
16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

United States

State of Nevada

Douglas County

Carson City

The unemployment rate is improving nationally and locally Douglas Countys unemployment rate as of December 2013 was 9.6%, unchanged from October. This is the lowest unemployment rate for the County since December 2008.
Financial State of Douglas County, March 2014 16

Economic Indicators
Douglas County Residential Property Sales and Prices (Combined Lake Tahoe and Valley) For the Calendar Year Ended December
$700,000 $600,000 $500,000

Highest since 2008

$400,000

$300,000

$200,000

$100,000

$0 # Sales Year 1321 2003 1504 2004 1306 2005 878 2006 690 2007 Median 569 2008 Average 664 2009 687 2010 791 2011 927 2012 947 2013

Highest since 2005

Residential property median sales prices and number of sales have continued to increase in the past two calendar years.
Financial State of Douglas County, March 2014 17

Economic Indicators
Douglas County Taxable Sales Fiscal Years Ended June 30
$900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

First six months of Fiscal Year 2014

Positive trend in taxable sales.

Financial State of Douglas County, March 2014

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Economic Indicators
Year-to-Date Change in Taxable Sales Selected Nevada Counties July - December 2013
12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Clark 73% Washoe 14%

Year-to-Date Percentage of Total Nevada Taxable Sales by County July - December 2013
Carson City 2% Douglas 1% All Other 10%

Clark

Washoe

Carson City

Douglas

Year-to-Date taxable sales in Douglas County increase 0.4% Douglas County is a receiving county we receive sales taxes collected in Clark County and Washoe County (Consolidated Tax = 26% of General Fund)

Financial State of Douglas County, March 2014

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Economic Indicators
Douglas County Building Permits Calendar Year Ended December 31
600 500 400
Permits

300 200 100 0 Commercial Residential 2004 44 505 2005 42 537 2006 39 418 2007 16 153 2008 19 58 2009 8 46 2010 8 38 2011 8 35 2012 10 49 2013 7 108

Building permits are a leading indicator and have been on a positive trend in the last two years.
Financial State of Douglas County, March 2014 20

Economic Indicators
Douglas County Assessed Value
O Assessed values
$4.0 $3.5 $3.0
Billions

$3.4 Bill $2.6 Bill

decreased 29% from 2009 to 2014 are estimated to increase 4% in 2015

$2.5 $2.0 $1.5 $1.0 $0.5 $0.0

O Assessed values

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Infrastructure Investment

Progress

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Community Revitalization

Progress

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Community Engagement
Douglas County Budget Challenge
Financial Stability 13% Managed Growth and Development 9% Infrastructure 25%

Progress

Economic Vitality 16%

Safe Community 20%

Natural Environment, Resources and Cultural Heritage 17%

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Our Greatest Asset:

A High Performing Workforce
Financial State of Douglas County, March 2014 25

Linda Doherty

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Liz Baumgartner

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Recorders Office

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Pat Brooks

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Tanya Scott

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Eric Schmidt

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911 Emergency Services

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Liz Begovich

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Pete Knight

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Debbie Beam & Tammy Davis

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How We Get Things Done

Board Leadership

Clarity of Vision + Common Purpose = Transformation

Residents & Businesses Engaged

High Performing County Workforce

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Challenges Ahead
Invest in infrastructure Revitalize Main Streets Invest in a high performing workforce Maintain Long Term Financial Strength

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Spotlight Awards

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Thank You!

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