Laughlin pitching incorporation plan to County Commission

Some Laughlin residents are tired of losing business and growth because of Clark County, one of the biggest bureaucracies in the state.

So they want to create their own city.

If they get their way today before a legislative panel, or Tuesday before the County Commission, they could vote as early as June 12 to incorporate.

Commissioners will receive a report from the Committee on Local Government Finance at their next meeting on the fiscal feasibility of incorporating the town about 100 miles south of Las Vegas. County staffers are recommending an election date be set that coincides with the primary election. Commissioners also could set a special election.

The state Legislative Commission is expected to discuss the report today and could determine whether the item goes to a vote. If that happens, the County Commission would only be required to set the election date by March 31.

Larry Lomax, Clark County registrar of voters, said residents within the boundaries of the proposed city -- which would not include the casino strip -- would be eligible to vote when an election date is set. Candidates for the proposed city's first mayor and four City Council members would have to circulate petitions to get their names on the ballot.

Commissioner Steve Sisolak, whose district includes Laughlin, said he supports incorporation but is concerned about whether the proposed city could survive financially right now, because "the county cannot bail them out if it's not successful." The county is facing a $42 million budget gap for fiscal year 2012.

'WE CAN MANAGE IT BETTER'

David Floodman is president of the Laughlin Economic Development Corporation, which commissioned its own study. According to that study, the proposed city would need an annual budget of $9.7 million, with $5.7 million of that transferred from the county's consolidated tax funds. The city would have a balanced budget and would assume all administrative responsibilities, which could save the county $4.8 million annually. Floodman said the area is limited by county bureaucracy.

"We think we can manage it better," Floodman said. "We think we can take our tax dollars here and put them to work in a way that's efficient. To make any decision about what's going to be built in this community or how projects are going to be run, all of that is done 100 miles away. It's killed millions of dollars in projects and scared vendors away."

The proposed city's safety net includes a $12 million fund that already pays for most of the town's capital equipment uses.

According to the Nevada Department of Taxation, the proposed Laughlin city would need an annual budget of $11 million. About $3.5 million to $3.9 million of that would be consolidated tax funds transferred from the county.

Under the state Taxation Department scenario, the new city would start with "an immediate budget deficit, with all revenues and beginning fund balance consumed in less than one year, and a significant negative fund balance at the end of the first year of operation." The county could continue its existing level of fire service and payments to the Metropolitan Police Department. Overall, a slight cost increase would be felt by all entities involved because of administrative and judicial costs.

More than 7,300 people call Laughlin home. The town rests on the banks of the Colorado River across from Bullhead City, Ariz., an area with more shops, services and about 40,000 people. Laughlin has one hometown grocery store, no supermarket chains and few fast-food chains. Over the past decade, Laughlin's population has grown at a snail's pace. According to the latest census figures, 247 people moved to Laughlin in the past 10 years.

"If we're under Clark County, we'll never be able to grow," Floodman said. "We've had to compete with Bullhead City, and it's a different world on both sides of the river."

THE CITY OF LAUGHLIN

Senate Bill 262, proposed by state Sen. Joe Hardy, R-Boulder City, required the study by the Nevada Committee on Local Government Finance. If approved by voters, the new city could incorporate by July 1, 2013. The last city in Clark County to incorporate was Mesquite in 1984.

The legislation required the state Department of Taxation to conclude in its report whether incorporation would be financially viable, which it did not do, Sisolak said.

"I'm disappointed they didn't do it, and I don't think we have the technical expertise to do that," Sisolak said. "I'm concerned voters won't have enough information."

Terry Rubald, who runs the Taxation Department's assessment standards division, said the department "did everything that was required of us."

The proposed city would be modeled after Las Vegas with a county island casino corridor separate from the city boundaries. Fire and police services could be outsourced, or city departments could be created. However, the county would still be responsible for providing services to the business corridor.

City revenue would come from property tax rates similar to Boulder City and Mesquite, consolidated taxes and other municipal fees. Proposed city boundaries include the ENN Mojave Energy Corp. solar energy project, which is expected to create 2,000 permanent manufacturing jobs and another 4,000 construction jobs on a 9,000-acre swath of land in the county's southern tip.

That project hinges on the Chinese-based energy company's success in reaching a purchase power agreement between an energy seller and buyer, which hasn't happened yet. The energy company has 15 months left to reach one, according to its agreement with the county.

Nevada's consolidated tax distribution formula is the equation used to give portions of state tax revenue back to communities statewide. The pool is formed by six taxes including cigarette tax, liquor tax and a government services tax from vehicle registration.

Most of the consolidated taxes in the area come from Laughlin's casino corridor, which would not be included in the proposed city revenue. The Nevada Resort Association has said that a failed incorporation would damage resorts along Casino Drive.

THE RIGHT TO VOTE

Floodman likened the town's partnership with the county to a crumbling marriage, one that isn't working anymore. And it's time to move on.

Hardy, who sponsored the legislation for the feasibility study, said incorporation comes down to Laughlin residents' right to vote.

"That's what this is all about," Hardy said. "This vote allows the people of Laughlin to see if they want to go through this, if they want to vote for incorporation, and they would have an opportunity to make those decisions based on facts."

Connie Davis, executive director of the Laughlin Chamber of Commerce, said the issue isn't about voting rights.

"This is about the feasibility study," Davis said. "If it plays out that it's not fiscally feasible, then it shouldn't happen."

Sisolak, who said voters have the right to decide, agrees.

Contact reporter Kristi Jourdan at kjourdan@reviewjournal.com or 702-455-4519.