Las Vegas firefighter contract OK’d

Las Vegas firefighters got a new, two-year contract Wednesday.

It was the last piece of an effort by city officials to slow the growth of personnel costs as they face millions of dollars in projected budget shortfalls over the next five years.

It does not stop the growth of those costs. The agreements with the city's four unions leave in place step raises -- 5 percent, usually -- for eligible employees.

The firefighters gave up a cost-of-living increase in the current budget year, but other city unions only agreed to a reduction in that increase. The COLA savings is about $1.5 million.

The new firefighters contract also obligates the city to pay more toward employees' retirement contributions and health care costs, which leads to an increase of $1.75 million.

In the 2009 budget, firefighter personnel costs were $102.7 million. In 2010, those costs will be $107.2 million, according to a city presentation, an increase of 4.4 percent.

Without the changes in the new contract, those costs would be about 5.3 percent higher, or $108.1 million, according to the presentation.

Firefighters in Clark County and local cities receive a series of step increases after being hired. Besides so-called cost-of-living raises, which are negotiated items and aren't tied to inflation, some of them also get longevity pay and bonuses for getting specialized training.

The county's basic pay scale for firefighters is $48,000 to $74,000. In Las Vegas, it's $50,000 to $77,600. Henderson pays $55,300 to $81,500, and North Las Vegas, $54,600 to $77,000.

"We're working with less and we're doing more, and I appreciate your support," said Dean Fletcher, head of International Association of Firefighters Local 1285, after City Council members unanimously approved the contract.

City officials said the immediate goal of their overall bargaining effort was to slow the growth rate of personnel costs by 1 percentage point a year, and they said that goal had been met.

However, they have also acknowledged that the city's financial picture has darkened since that goal was set, and City Manager Betsy Fretwell said the city needs to cut $25 million in programs or compensation in the 2011 budget year to meet expected shortfalls.

Mayor Oscar Goodman said council members and staff discussed several options to deal with the city's budget woes, including instituting cuts across the board or eliminating all salary increases and bonuses.

That would be difficult to do without getting into protracted fights with the unions that represent about 90 percent of city employees, and council members said they were glad to have avoided arbitration, where the city has usually not fared well against the unions.

That could change once Senate Bill 427 goes into effect Jan. 1, improving the city's bargaining position when it comes time to renegotiate contracts, Fretwell said.

The new rules require arbitrators to look at government employee compensation both in and out of state. They must also consider the government entity's ability to pay over the entire term of the contract, not just the first year.

"It shows the complete impact, the whole picture," Fretwell said. "That was not in the law. That's a change in the landscape for future negotiations."

Fletcher didn't think the new law will make much of a difference.

"I don't think that it does," he said. "An arbitrator always takes into account what's going on, and whether they have the ability to pay or not."

He said employees also accept that the city is going to look for more cuts.

"Unfortunately, our economy is not getting any better," he said. "Until that turns around, they're going to have to look at it. I feel good that (the city) has been pretty conservative in their spending and where they're headed."

According to figures provided by the city, personnel costs for all unionized employees will be $295.5 million in the 2010 fiscal year, an increase of $13.5 million, or 4.8 percent, over the previous year. The tentative 2010 budget presented in May forecast personnel cost increases of $18 million.

Las Vegas expects a $30 million operating shortfall in the 2010 budget year and a cumulative $224 million deficit through 2015. There are reserve funds to cover some of the shortfall, but officials said additional cuts are needed.

Review-Journal writer Scott Wyland contributed to this report. Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.