NLV tackles budget crisis, averts layoffs — for now

North Las Vegas city workers exhaled a collective sigh of relief tonight when they heard that no one would be laid off, at least for now.

Roughly 250 people packed the City Council meeting to learn whether layoffs would occur in response to union workers rejecting a proposal last week to forgo 4 percent pay raises for a year.

Layoffs remained a possibility, however, as council members directed staff to keep negotiating with Teamsters Local 14, which represents 780 city employees, while looking at which jobs could be cut.

City Manager Gregory Rose said the union must work with the city if all employees are to keep their jobs.

“I believe there has to be concessions ... in order to avoid layoffs,” Rose said. “We must be prepared for the worst-case scenario.”

The city also will whittle a key reserve fund to 10 percent. That’s the bare minimum needed to keep the city’s current bond rating and not jeopardize the city’s financial stability, Rose said.

City officials estimated that if employees had agreed to forgo the 4 percent cost-of-living raises for a year, it would’ve saved the city $4.4 million.

Gary Mauger, local Teamster leader, blamed the proposal’s failure on union workers feeling rushed to vote. The city gave the union about less than two weeks to present the deferred pay raises to members, he said.

Rose and a few council members argued that pay raises cannot come at the expense of essential services.

Councilwoman Stephanie Smith said she wouldn’t approve layoffs now, but the city’s dire financial situation might compel her to do so later.

“People need to understand if they’re not willing to come to the table, that’s the future,” Smith said.

“This is serious,” Mayor Michael Montandon said. “These are the hard decisions. There’s no way around it.”

Jason Burns, a city employee and union steward, said it wasn’t made clear to workers exactly what they were voting on.

“I view this as a failure by both parties,” Burns said. “Most of my co-workers are willing to make concessions.”

Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.