Flat tax revenue pinches LV

Under an economic cloud caused by flat tax revenue, the Las Vegas City Council unanimously passed a budget on Tuesday with fewer dollars for new workers and capital projects than in the past.

The city's budget for the fiscal year that begins July 1 adds 27 positions, mostly in new city marshals and firefighters/paramedics. It also pays for some large-scale projects, like a fire station in the northwest and a pool cover in Summerlin.

At $1.4 billion, the budget is slightly smaller than the current year's budget, said Mark Vincent, the city's director of finance and business services.

The budget for the general fund, which pays for public safety and much of general government operations, was $558 million.

"What you're doing today sets the tone ... for the rest of the year," City Manager Doug Selby told the City Council.

That tone, though, is dictated by how much money the city expects to receive. And Selby said tax revenue's "slow growth has had a chilling effect on our finances."

In prior years, Southern Nevada governments have seen double-digit increases in consolidated tax revenue, a major tax revenue stream, and budgeted with that expectation in mind. This year, though, that tax growth has been flat, because in large part to stagnant sales tax and a depressed real estate market.

The city of Las Vegas, like a number of other cities in Southern Nevada, has already reduced its earlier projections for the current fiscal year, slowing down hiring and limiting new projects.

So far this year there has been an increase of less than 1 percent over last year's consolidated tax revenue, the funding source that makes up over half of the general fund.

The city did add some positions though, saying that they would be paid for mostly by reducing overtime costs by fire and police departments and eliminating seven vacant city jobs.

The city will add 20 firefighters/paramedics and five marshals.

Two customer service representatives also will be added to staff Floyd Lamb State Park, which the city will take over on July 1 from the state. Those positions will be paid for by an entrance fee to use the park.

The city also reallocated some capital money to pay for large-scale projects. About $7.7 million was earmarked for a fire station in Ward 6, in the northwest section of the city.

Pavilion Pool Center will also get a pool cover at a cost of $6.4 million. Councilman Steve Wolfson had publicly complained that his ward hadn't had any park money allocated to it since he took office in 2004.

The city's general fund operations and capital costs will outpace revenue by about $6.5 million, according to figures provided by the city. The shortfall will be made up by going into the city's reserves.

The $69 million in that fund still will give the city enough money in reserve to be within its internally mandated cushion, Vincent said.

Councilwoman Lois Tarkanian was the only elected representative to make an early public pitch on how any additional money should be spent if the economic fortunes of the city pick up. She said the city needed more code enforcement officers.