Elko's sales taxes fall 12% from same time last year

ELKO — Elko’s sales tax revenue fell 12% from the same time last year, affecting preparation of the budget for the 2025-2026 fiscal year. But the Nevada Department of Taxation could be to partially to blame because of system changeover. City Manager Jan Baum said sales taxes are probably down $2 million and Financial Services Director Julie Davis told the council the 12% drop came after the city received the latest sales tax payment from the state.

The Nevada Department of Taxation wrote on March 25 it was working with the vendor for the new system to recover revenue lost “due to a shortened closing period.” The letter refers to a problem in November but also lists additional difficulties, such as taxpayer errors. Councilwoman Marissa Lostra said this week, “everybody across the state is having the same issue.



” The taxation department also reported, however, preliminary figures statewide show sales tax revenue looks flat for January 2025, compared with January 2024 statewide and that is aside from any system changeover. Davis told the Elko City Council this week “there is almost two months to fine tune the budget” before the final budget must be filed with the state, so the figures she presented can change. The tentative general fund budget for the fiscal year beginning July 1 calls for $25.

23 million in revenue and $30.32 million in expenditures for a $5.09 million deficit, but a beginning fund balance of $14.

63 million will help make up the difference. Financial Services Director Julie Davis speaks with City Council members this week. The ending fund balance is budgeted at over $8.

66 million, which surpasses the nearly $2.52 million fund balance city code requires. According to the current fiscal year budget that is still estimated since the year doesn’t end until June 30, revenue totals nearly $26.

41 million and expenditures are at $27.88 million, or $1.47 million in the red, but with a beginning fund balance of $17.

25 million, the ending fund balance is $14.63 million. Davis also called the council’s attention to the huge increase in the city’s share of payments to the Public Employees Retirement System, especially PERS for police officers and firefighters.

According to the budget packet, pension contributions to be paid by the city are increasing to 58.75% of wages for police and fire personnel from 50% in the current fiscal year and to 36.75% for other city employees, up from 33.

5% for the 2024-2025 fiscal year. Mayor Reece Keener said he was “a little bit surprised” by the PERS increase for police and firefighters that means the “pie got a lot smaller for other departments that depend on the general fund.” The budget presentation shows salaries and benefits for city employees make up 74% of the general fund budget.

An earlier presentation from Davis stated the city has 187 full-time and 38 part-time employees. Davis also said some water and sewer projects have been deferred to 2027 because of the financial pinch and she said there likely will be a need for more reductions. Lostra said she knew each department had already “significantly dropped” proposed budgets, and she wondered if there would need to be more cuts.

Elko has spent all the $27.48 million in American Rescue Plan Act funds received because of the COVID-19 pandemic, so there aren’t any ARPA dollars in the latest budget. The tentative budget also shows the city has $108,500 in community service donation requests for the upcoming fiscal year, compared with $118,500 for the current fiscal year.

The change is $10,000 for Elko Arts & Culture this year. The largest contributions are $40,000 for Friends In Service Helping and $20,000 to the Elko Area Transit Authority, followed by $10,000 each for the Committee Against Domestic Violence, the Elko Senior Citizens Center and Nevada Rural Co. RSVP.

The Vitality Center is budgeted for $7,500 and the California Trail Heritage Alliance and Nevada Outdoor Schools, $5,000 each. The Elko High School Homecoming Committee gets $1,000. Stay up-to-date on the latest in local and national government and political topics with our newsletter.

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