Las Vegas budget includes new fire stations, more park workers

Las Vegas residents can expect two new fire stations and more weekend park workers in the next year, but that doesn't mean the city's finances have recovered from the beating they've taken in recent years.

That's according to City Manager Betsy Fretwell who on Tuesday presented the City Council with a $468.8 million general fund budget. The council approved the tentative budget, which totals $1.2 billion when other funds are added in, by a 7-0 vote.

The budget, detailed in more than 130 pages posted on the city's website, includes about $13.8 million for two new fire stations and six additional fire­fighters and $2.2 million in debt service for the new City Hall building.

It includes $2.3 million to hire people for 28 jobs, from firefighters to maintenance workers to a deputy city attorney.

"We are able to actually begin to add back in a very small way areas where we cut significantly," Fretwell told the council. "After a couple years of cutback management, it feels good."

It's still a far cry from the $530 million general fund the city wielded in 2010, which by last year had been trimmed to $455 million, a difference of 14 percent.

And the most recent budget also includes $10.4 million in spending from reserves, something the city can't sustain over the long haul if it intends to maintain its high credit rating. One ratings agency has already indicated further reserve spending could damage the city's credit, which would drive up the cost of borrowing.

"They sent us a warning shot," Fretwell said of Fitch Ratings' statement in April that changed the city's outlook from "stable" to "negative," although two other agencies maintained positive views. "A negative outlook is a pre­cursor to a downgrade. I'm not sure that is where we want to be."

Although Fretwell maintained a message of cautious optimism, the leader of the city's biggest labor union questioned her numbers before the council.

Val Sharp, president of the Las Vegas City Employees Association, said he thinks the budget should include funding for the entire classified workforce to return to 40-hour work weeks.

Those employees have been working just 38 hours in recent years as part of the city's cost-cutting measures. Unionized workers also gave up three types of scheduled raises, which are slated to return beginning in January.

More than 100 workers were laid off in recent years, although about half have been hired back.

"We're the guys that do all the work, sweep the streets, fix the traffic lights," Sharp said. "We do everything that makes this city hum."

Sharp wants the workers' two extra hours returned with the raises, something he said has already been negotiated.

Fretwell disagrees and didn't put the extra hours in the budget, something she said would cost about $6.7 million, including benefits.

If the dispute isn't settled amicably, it could end up in front of an arbitrator Sharp said.

"We can't strike, the only thing we can do is hope they live up to an agreement they made," he said.

Although the council voted un­animously to approve the budget, some members expressed frustration with the level of service to residents, particularly when it comes to park and street maintenance.

Councilman Steve Ross said he attended an event Saturday in Centennial Park and was "embarrassed" by overgrown grass and overflowing garbage.

Still, he told Sharp he's not sure the city can afford to add hours Fretwell hasn't already included in the budget.

"I would be the first one to say that when I think it is time, but we're just not there," Ross said.

Councilwoman Lois Tarkanian said she's tired of seeing deterioration at city parks and along city streets.

"Sometimes they are falling apart more quickly because we haven't got the maintenance there," Tarkanian said. "I'm told it is because we don't have enough people to do the work."

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com.