Mayor & Council
Mayor Andy Hafen presents the State of the City 2012
Mayor Andy Hafen
City of Henderson
2012 State of the City Address
February 9, 2012
Green Valley Ranch Resort
Thank you. It’s a great day to be in Henderson, and it’s great to be at the Green Valley Ranch Resort.
We appreciate Steve Schorr and Duffy Leone with Cox Cable for generously agreeing to broadcast the event today.
A big thank you as well to Scott Muelrath and the Henderson Chamber of Commerce. Scott has great vision and we appreciate the positive relationships he’s forged. That partnership with him, with the Chamber, and with our business community is vital to our success in the future.
I’m also pleased to welcome our newest City Council member, Mr. John Marz. I know he cares deeply about our community and is committed to work hard for the residents of Ward III.
This is Sam Bateman’s first State of the City as well, and we’re glad to have him, too!
We have a wonderful City Council. They are good friends, they are good public servants, and they are good people. And I want to thank them.
A few weeks ago we went through the process to fill our open council seat. I found myself thinking about what it really takes to serve. As I read through the resumes of those who applied, I was very impressed with each and every one. It’s a tough decision to put yourself in the public eye. And while we could only choose one, at the end of the day I left with a renewed feeling that we have some of the best, brightest and most community minded people living here. It made me proud, not only because we’d selected an outstanding person to fill that seat, but proud of the fact that we had so many outstanding people willing to step forward to serve.
There is so much good that goes on here every day, and so many positive things happening, we want people to know about it. Now that doesn’t mean that we don’t have our bumps in the road - - no offense to Public Works - - but when we do encounter those bumps, we work hard to make them right.
As I’ve thought about the many great things that go on in this city, I’ve realized that, unlike other places where what happens there stays there, what happens in Henderson transcends our borders.
Our vision is to be America’s premier community. That is what we work towards every day. We have a vision, we have a plan, and we’re working towards that vision with great results. And while the last four years have certainly been difficult, we’ve weathered them well. We’ve had challenges, but despite those challenges, I can honestly say I’m feeling as positive and upbeat about our future as I’ve ever been.
The Henderson - - [applause] thank you. You bet - - The Henderson you see today is more refined. It is leaner, it is stronger, and it’s strategically prepared to meet the challenges of the future. We’ve faced the fact that we’re going to be serving a growing population with fewer resources. But we’ve also committed to pursue a vision of being a premier community.
In order to do that, we’ve had to be resourceful. We’ve had to be fiscally conservative and we’ve had to be diligent.
Over the last 20 years, we’ve established conservative fiscal practices. We increased the revenues we collected to many of our internal funds. These funds have been viewed as “reserves,” which, frankly, they are not. These accounts are for vehicle replacement, worker’s compensation and our future city obligations. We are drawing down the excess in these accounts to meet the continued deficits we face.
We’ve made major cuts to our budget. We’ve trimmed more than $105 million dollars from our General Fund, and we continue to look at ways to reduce spending and consolidate resources. Cost-of-living allowances have been frozen. Our executive, managerial, and professional-level employees have all taken compensation reductions. We’ve reorganized and consolidated. We’ve reduced our non-public safety staff by 17 percent. In fact, seventy percent of the 244 positions we’ve vacated through our targeted reductions remain vacant to this day. Those we’ve refilled were done at a much lower cost to the city. We’re saving nearly $14.4 million dollars annually because of that strategy.
We made choices early on to reduce our workforce. We chose early to cut operational budgets. We chose to act quickly to reduce expenses and benefits and made other choices that helped us. While these strategies have helped us manage thus far, we are still operating with a structural deficit. There are difficult decisions yet to be made to help Henderson thrive over the coming months and years.
Our quick action has not kept us from making tough choices; it has simply given us more time to make them. Moving forward we have a comprehensive strategy that involves working with all our employee groups to find ways to reduce our dependence on other revenue sources. We meet with them on a monthly basis to discuss our challenges as we work to find solutions together. We appreciate their leadership, because the cooperation of all those groups will be critical to achieve our goal of financial stability and sustainability.
As we move forward with our financial strategies, one area that we really keep an eye on is our property taxes. Again this year we are seeing assessed valuations coming in lower than projected. While we’re still awaiting the final numbers, initial estimates show we’ll see a decrease yet again in those numbers. We’re hopeful, though, that 2012 will be the year that those property valuations begin to stabilize and show signs of recovery.
On a positive note, our Consolidated Tax revenues continue to show signs of improvement. We watch anxiously each month to see if we will continue to have the steady increases we hope to see there. We’ve had several months of gains that lead us to believe we are seeing a gradual economic recovery. Economic indicators lead us to believe that we will start to see some improvements, and we are hopeful that will be the case.
However, as we do turn a corner, we are very mindful that the future holds small and steady improvement, instead of the old days of intense, rapid growth. One of the key factors that will determine the degree to which we recover, and the speed with which that happens, is our ability to create a diverse job market in Southern Nevada. Henderson has always been on the leading edge as we’ve reached out to new businesses and helped existing businesses grow.
I am very happy to be able to say that we’ve seen an increase in companies expanding or moving to Henderson over the past year. These businesses will create more than 400 new jobs and add more than $120 million dollars immediately into our economy. With over 150,000 square feet of manufacturing, packaging, and shipping space, TH Foods, an Asian snack food company, is a great example of the type of new businesses we’ve welcomed to our borders. They join a dozen other major companies I’ve had the privilege to welcome recently, in addition to nearly two dozen other small businesses that have opened in our redevelopment areas.
From a redevelopment perspective, business creation in downtown has helped drive the vacancy rates down to less than four percent. Just two years ago we were higher than 12 percent. In addition, in cooperation with the RTC, we’ve worked to bring transit options to our residents along Boulder Highway and in downtown Henderson. This opens up a whole new world of opportunities for the residents in those areas, and infuses new life and new business potential there.
What we’ve done downtown we are expanding to other areas. We’re creating business associations in those locations and meeting with residents to determine what services they need. Economic diversification and development is a priority for us. It’s part of our vision, part of our Strategic Plan. And we’re forging ahead in that area.
In addition to new business, we’re also seeing some great business expansion. With us today is Brian Wehner, Levi’s Senior Director of Logistics and Distribution for the America’s. Levi’s is an international giant in the clothing industry, and we couldn’t be prouder to have them as one of our great Henderson businesses.
A few weeks ago, I spent some time with Brian at Levi’s Henderson plant. During that visit he described what is going to be a major undertaking for that company. I’m happy to announce that construction is underway for a $28-million-dollar expansion to their Henderson operations. This expansion will increase their capacity by 50 percent and add a significant number of new jobs. I know as they looked at this project they could have chosen any location in the region. It means a great deal to me, and to our city, that they chose to do this project here in Henderson.
I am grateful to all the outstanding businesses that make their home with us. We appreciate you, we support you, and we look forward to a long, personal and successful relationship with you.
As we celebrate the successes of 2011 we’re also excited for some great opportunities on the horizon. Many of you know about our Limited Transition Area, or LTA. Adjacent to the Henderson Executive Airport, the LTA consists of about 500 acres of commercial and industrial land. I can tell you that as of today, we’re in exclusive talks to sell approximately 150 acres of that land. Both the City and the developer are doing their due diligence to effect the sale of that land by this summer.
Another project we are working on is Union Village. Announced last spring, Union Village is a proposed $1.6-billion-dollar integrated healthcare and mixed-use development. The project is located adjacent to US-95 and Galleria Road on the land shared with our proposed Henderson Space and Science Center.
The focal point of the development will be a state-of-the-art hospital, with a continuing care hospital, a cancer hospital, a children’s hospital, and a wellness and rehabilitation facility. It will offer independent and assisted living housing as well as mixed-use development with retail and medical office space. We have regular meetings with the Union Village team. We know they are currently proceeding with the financing, engineering, and design work for the project. If all goes as planned, we should see the groundbreaking on the hospital complex by the end of this year.
Just across the street, our Planning Commission recently approved plans for a new, state-of-the-art, 21- acre water park. With 20 water slides it will also include a lazy river, wave pool, cabanas, and food services. It will be a great, family-friendly attraction that will enhance that location, provide dozens of jobs and be a great addition to the city. That project is anticipated to break ground this summer and be operational in 2013.
On the west side of the city, I’m happy to announce today that St. Rose Siena Hospital is about to begin a major $156-million-dollar expansion to their campus. The expansion will include 130 new beds and will double the size of the emergency room with construction to begin in the next few months.
We continue to work with the developers of the proposed Las Vegas National Sports Complex. The LVNSC is a planned $1.5-billion-dollar state of the art stadium, arena, and entertainment complex located south of the M Resort and immediately east of the I-15 corridor. Phase one of the project is scheduled to include a 20,000-seat stadium that would house soccer and other professional events, as well as an arena for basketball, hockey, and other sports and entertainment activities.
Phase two is planned to include a football stadium and a baseball stadium, both large enough to host professional events. The LVNSC group has worked diligently with us over the past six months. They’ve completed efforts to acquire entitlements from the city for land use, zoning, and design guidelines. They’re securing financing for the land to construct the venues and acquire sports franchises. They meet with us regularly, and in fact, I understand that they are poised to make an announcement today that could allow them to break ground on the project by this summer.
We’ve been very clear on our direction that no current revenues will be diverted, or new ones levied to put taxpayers at risk for these projects.
But as a City Council, we want to ensure that developments like these have every opportunity to succeed. And we’ll continue to do all we can to facilitate them. When you consider the potential rewards to our city, our valley, and our state, it would simply be irresponsible to do otherwise. There is a lot of work left to do on both these developments, but we’ve seen real, tangible progress and believe they are good projects with a great chance of being game changers in the Southern Nevada economy.
We see similar potential in our efforts with renewable energy and sustainability. Under the direction of our economic development office, we recently hosted our first Global Solar Summit. We were successful in bringing the largest solar panel manufacturers and developers from around the world to Henderson to discuss their plans for solar development. The summit was a resounding success and helped introduce Henderson to a global marketplace.
We have a desire to grow internationally, and have regular contact with countries like China, Japan, and Korea. But our Global Solar Summit expanded our reach, as twelve different nations came to Henderson to discuss their future plans and trends in solar energy.
In fact, the summit was so successful that I’m happy to announce that we are already planning our 2012 Global Solar Summit and are expecting even more international participation.
As companies look to start up, relocate, and expand, just what is it that makes Henderson so attractive? We know for a fact that the things they look at are the areas where we excel. Earlier this year, Henderson was selected by Business Week as one of America’s 50 Best Cities. This is the third time in the last decade that Henderson has been nationally recognized as one of America’s all-around best cities.
We’re proud of those designations. We’re proud that we’re seeing the results of hard work to achieve our vision, our mission, and our goals. We know that when selecting a city for these kinds of honors, evaluators look at a wide range of factors. Factors that for many years we’ve made a priority. Our commitment to parks, open space, trails, and providing cultural arts and amenities has brought us national attention.
We have International Ironman competitions, Shakespeare in the Park, the Super Run car show and art festivals. We host parades, WinterFest, concerts, and other cultural arts and entertainment offerings.
These events bring value to our city. They bring tourists and competitors to our races and shows. They fill hotel rooms, provide entertainment for our families, and provide hundreds of millions of dollars of economic impact to the city. Our parks and recreational offerings are world class and offer something for everyone, regardless of age or ability.
From our APPLE partnership where our SafeKey kids learn to read, to our therapeutic recreation; from our sports programs and senior centers to our trails, skate and dog parks, Henderson offers some of the finest and most diverse programs and facilities in the country.
I was excited to join my fellow Council members recently as we opened Hidden Falls Park and Reunion Trails Park, two beautiful new additions to our parks system. I want to thank our Parks and Recreation and our Public Works staff for all their hard work to get those parks designed, built, and open for our residents. This past year they’ve been working hard as well with important improvements at Morrell Park, Silver Springs Park, and Wells Park, in addition to opening new trails and trailheads throughout the city.
As we construct new parks and other city facilities, we’re always mindful of our strategic goal to promote sustainable practices and development. So we were especially pleased this year to be the recipients of the Earth Award from the Building Owners and Managers Association. This award was presented for the sustainable design and features of the LEED Gold certified Heritage Park Senior Facility and Aquatic Complex.
We were also honored by the American Public Works Association with the Project of the Year Award. This award recognized efforts we began in 2009 to cut costs and reduce energy use throughout our city facilities, an effort that is saving millions of dollars annually.
We were recognized as having one of the Top 100 fleets in the country for our efforts to reduce our vehicle inventory, create motor pooling resources, and use alternative fuels.
As we talk about all these factors that make Henderson such an attractive community, I’d be remiss if I didn’t mention one of the key components of our success. One of our five key goals for the city is simply to have a safe community. And I’m proud to say that we are succeeding on every level.
Henderson leads the nation in cardiac survivability rates, with levels more than double the national average. That didn’t happen by accident. It is because of the training and policies and commitment to best practices by the men and women of our fire department. We see them constantly in the community working to promote awareness on issues like drowning prevention and fire safety. These are some of the best trained fire professionals anywhere, and we couldn’t be prouder of the work they do.
One of our most recent accolades came in December when we found out that Forbes named the City of Henderson as the second safest city in America. Those rankings were based on violent crime rates, traffic fatalities, and other categories where we’ve continued to see declines, in large part, through the hard work of our police department. We know that much of what police do is reactive. But our police are constantly out in the community trying to be proactive. You’ll find them in schools, teaching kids about the dangers of drugs and alcohol, and how to make correct choices through the DREAMS and Every 15 minutes programs. We have a nationally recognized internet crimes unit that patrols cyberspace to protect young people from predators. Others are working undercover fighting drugs and preventing theft. They are patrolling our neighborhoods and keeping traffic flowing safely. Whatever division they work in, the men and women of our police department work tirelessly to help keep Henderson safe. They do a great job and deserve our thanks.
For all that our police and fire do, I think these men and women would be the first to tell you that we have not achieved this success alone.
When you think about what makes a city, most municipalities share a lot in common. We all have roads, streetlights, and utilities. We have parks and trails, police and fire departments. So what is it? What is the mystery ingredient that makes Henderson different? I would venture to say that the most unique thing about Henderson, the thing that makes us so special, is our people. [applause]
I guarantee you that if you ask Chief Chambers or Chief Goble, they would be the first to tell you that achieving the designation as the second safest city in America wasn’t just a police or fire department effort. We achieved that because we are a community. We are a group of people committed to working together to make Henderson the best city in America. It’s because we have residents who care. We have mothers and fathers, business owners and seniors, who care about our community and actively participate in what happens in their neighborhoods.
For all the good work we do, there are things government just can’t provide. How grateful I am for the myriad organizations and individuals who step up every day and fill in those gaps. Organizations like the Henderson Community Foundation or HopeLink. Organizations like the Boys and Girls Clubs, Boy Scouts and Girl Scouts, religious organizations, food banks that feed our needy, or foundations that support education.
Community groups like LV Sews, a group of Sun City Anthem ladies who sew specialty clothing for soldiers who’ve lost limbs; or the Blue Star Mothers who make and stuff holiday stockings for our troops. Individuals who coach our youth sports teams, organize neighborhood watches, or who read to our children in schools. People who look for the needs in the community and then go out and try to meet those needs.
People like Suzanne Lea who created the 12 Days of Christmas. In 2008, Suzanne’s husband died suddenly of a heart attack. When the holidays came, she and her two young boys found their grief almost too much to bear. One day as she was singing the song, “The 12 Days of Christmas” to her boys, her doorbell rang. On their front porch they found an anonymous gift, and for the next 11 days additional gifts were left anonymously at their door.
Since that time, Suzanne has turned that experience into an opportunity to serve others to bring them the joy and happiness she and her family were given during their time of need. I had the honor of participating with Suzanne over the holidays, and I was truly touched by the selfless acts of caring that I saw. Suzanne is with us today and I’d like to personally thank her for her example. Suzanne, will you please stand?
We have hundreds of people who volunteer with the city who donate tens of thousands of hours. I am honored to have representatives from these groups with us today, and I want to thank them for all they do. But before I ask them to stand, I’d like to try a little experiment. If you have volunteered, donated time or money, or given back to our community in some way this past year, will you please stand so we can thank you? Stand up. You bet. Henderson is full of people like you, and that is what really makes us great. It is the reason we do what we do.
Last year at City Hall alone, our employees saved 350 lives through blood drives. They donated nearly 16,000 servings of food to help the homeless at Thanksgiving. Our court marshals raise money for the Special Olympics; our Fire department works every year to “fill the boot” for Muscular Dystrophy. Employees raised more than $97,000 for various charitable organizations through what we call “jeans Thursdays” at City Hall. They have to pay $5 to wear jeans on Thursdays.
We recently conducted a survey of city employees and found that in addition to all they give at the office, more than 86 percent of them volunteer and give back in other areas outside of City Hall as well. They care about our city. They are invested in it, and they help make a difference here every day. They’re the driving force behind our efforts to achieve organizational excellence, and I want to thank each and every member of our great city staff for all their hard work.
I know we have a number of city employees with us today and watching on the Internet. Will all of you please stand? Please stand. All city employees in the audience today, and watching on the Internet, as far as that goes.
Robert Kennedy once said that "few will have the greatness to bend history itself, but each one of us can work to change a small portion of events, and in the total of all those acts will be written the history of this generation."
Our vision is to be America’s premier city. It drives everything we do. But that doesn’t happen in one big, grand moment. It is, rather, through the accumulation of millions of other, smaller, moments of service, hard work and sacrifice, that combined, make us what we are. We each, individually, and all together, work to make this city a better, safer, happier place to live and work and raise our families.
Henderson is defined every day by the thousands of acts of kindness and caring that lift and build us. Each of us is a partner in that effort. How you live your lives every day makes up the thread that weaves us together as a community. You are the reason we do what we do, and the reason we are who we are. The awards and the accolades are simply a reflection of the lives you live and the community you’ve helped create.
Working together we will continue to become more economically diverse. Working together we will remain a safe, vibrant, and sustainable community. Working together we will be America’s premier community.
Thank you. God bless America and God bless our community.
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