Contract negotiations part of budgeting process

Recruiting people has been a challenge at every level in Douglas County, and a limited housing inventory and sky-high gas prices aren’t helping matters.

There have been issues with finding qualified employees across the county from Gardnerville’s search for trash collectors to finding contract attorneys.

Contract negotiations are underway with the Douglas County Sheriff’s Protective Association and the Sergeant’s Bargaining Unit, who represent all of the county’s rank and file law enforcement officers.

The two groups had a five-year contract that expires on June 30. The contract for the Douglas County Public Employees Association doesn’t come up for another two years.

Negotiations will affect the county’s budget discussions.

County commissioners are scheduled to conduct four days of budget hearings March 29-31. Under Nevada law, local governments required to submit a balanced tentative budget to the state in mid-April and a final budget in mid-May. The government’s fiscal year begins July 1.

With roughly 600 employees a general fund of around $50 million, employees make up half of the total expenditures with services and supplies another 30.5 percent.

Douglas County and the school district are among the largest employers in the county.

The school district has around 900 employees many of whom are represented by associations.

“Approximately 85 percent of our budget is in salaries and benefits, and like almost everyone else, we have had challenges in hiring vacant positions,” Superintendent Keith Lewis said. “This creates an underspend that will allow us to be in a better position heading into our next fiscal year.”

Unlike the county, the school district is entirely at the financial mercy of the state, where the Legislature determines funding for two years based on a 75-cent per $100 assessed value property tax rate.

“We believe we will be in an OK budget position heading into the 2022-23 school year,” Lewis said. “We obviously continue to be concerned long-term if no adjustments are made to the Pupil Centered Funding Plan, especially given there is no cost of living or inflationary increases built into the formula. The cost of doing business is accelerating quickly, and if our funding level remains unchanged, this is going to create a very difficult budget situation long-term.”

The school district considers its tentative budget for next year on April 12, where trustees will schedule a public hearing for May 17.

County finance officers have been working on finding sources of revenue since the beginning of the year.

Today, county commissioners will discuss refinancing $7 million in bonds used to build the Douglas County Community and Senior Center

The refinancing marks the halfway point in paying off the $14 million project.

Refinancing will save the county $289,000 over the remaining decade of the bonds.

The county is racing the Federal Reserve, which is expected to increase interest rates this spring, said County Chief Financial Officer Terri Willoughby.

Refinancing requires the approval of an ordinance by commissioners, which will undergo a second reading this week.

The 2012 bond to build the Gardnerville center is at 3 percent.

Willougby told county commissioners earlier this month that selling a 10-year loan directly to a bank or financial institution by competitive bid would allow the county to lock in an interest rate.

The county won’t know precisely how much money will be saved until after the loan goes out to bid.