Las Vegas City Commission Minutes, February 17, 1937 to August 4, 1942, lvc000004-285

solute control of the expenditures. This control is the means whereby the City has been able to meet the needs of a rapidly growing community so well in spite of limits and restricted revenue, without becoming involved in any financial distress. The strictest economy has been necessary to do this; the absolute control has made possible the enforcement of strict economy. But economy is not the only problem in the financial management of the City affairs. The method of collecting taxes (namely, quarterly installments beginning in December each year) causes the tax revenue to lag behind the expenditures almost twelve months. The law provides that certain items such as bond interest and redemption, must be paid by tax levies. This, together with the necessity of redeeming large blocks of bonds and interest coupons at stated times, has made a problem of having adequate cash balances in the right funds at stated times. This makes necessary long range calculation to meet these needs; calculations difficult for the average citizen to understand. Careful study is necessary to meet this problem and careful and con­tinuous supervision in necessary to make the plans work. A cursory examination will not suffice to decide what to do. Each month, at regular meeting, each Commissioner has statements laid before him that show the financial matters right up to date, and they each watch these matters very closely. The law provides certain restrictions for keeping certain revenues in special funds also, which funds may be used for specific purposes only. There might be plenty of money in certain of these funds and an inadequate amount in other funds, so that bills could not be paid. This further complicates City financial management. The reader is referred to Schedule C. An examination of this Schedule will show how, in the face of steadily increasing assessed valuation, the City's tax rate has been steadily decrea­sed so that the dollars of tax revenue have been actually decreased. It will show also, how the final results of each year's balance of revenue and expenditures, both deficit and surpluses, are, over a period of years, balanced out, Obviously, the City's expenditures are not increa­sing in proportion to the growth of the community. This cannot help but result in inferior pu­blic service, by the City administration. One third (1/3) of the entire County's assessed valuation is in the City, yet the amount of tax money available for City purposes has been steadily decreased, as can be seen from Schedule C, until now the City gets but $1.05 out of each $5.00 of tax collected on real estate within the City and personal property within the City. The reader is now referred to Schedule D which shows the comparison between total cash on hand of the City as shown by the City books and as shown by the Bank. This schedule is included because the Mayor has laid great stress on the amount of cash in the City account accor­ding to the Bank records, and has questioned the necessity of making an emergency loan, with so much money in the bank. Schedule D shows, in the column headed "Per City Books" the true balance of cash in the City account if all checks had been presented and cashed. The difference between these figures and the balance shown by the Bank is due to checks issued and outstanding that have not been presented for payment. The Bank's figure cannot be a true balance until all these checks issued have been presented and cashed. In any business of the size of the City, such a condition rarely holds. As a matter of fact, the amount of cash on hand has little significance alone, until it has been related to the needs and requirements for cash that are immediately ahead or even that may come up some months in the future. A considerable amount of this cash may be in funds not available for ordinary expenditures but to be used only for specific purposes, such as bond redemption and interest. Furthermore, a certain balance of cash on hand is necessary in the nature of a revolving fund for the payment of payroll and other monthly expenditures against the time of revenues coming into the City control. With these facts presented, the Commission is of the mind that there is conclusive evidence that an emergency does exist and that it is necessary that the City have permission to make the Emergency Loan applied for. Respectfully submitted, ____Al Corradetti______________ Al Corradetti Finance Commissioner. Vote on the incorporation of said report in the minutes was as follows: Commissioners Gil­bert, Ronnow, Krause and Corradetti and His Honor the Mayor voting aye. Noes, none. On motion of Commissioner Ronnow seconded by Commissioner Gilbert it was moved and carried that the report in its entirety be printed in the Las Vegas Review Journal. Vote Commissioners Ronnow Gilbert, Krause and Corradetti and His Honor the Mayor voting aye. Noes, none. The business of allowing the Las Vegas Concert Association to use the War Memorial Building the nights of October 5th, 1940 February 17th and March 24 1941 was considered and on motion of Commissioner Gilbert seconded by Commissioner Krause it was moved and carried that Commissioner Ronnow contact the directors of the association and report back to the Board before granting use of the War Memorial Building the above mentioned nights. Vote Commissioners Ronnow, Gilbert, Krause and Corradetti and His Honor the Mayor voting aye. Noes, none. This being the time set for giving a definite answer to E.A. Clark as to the sale of City owned property it was on motion of Commissioner Gilbert seconded by Commissioner Corradetti moved and carried that the City at this time do not consider selling approximately 440 acres of ground east of the City. Vote Commissioners Ronnow, Gilbert Krause and Corradetti and His Honor the Mayor voting aye. Noes, none.