North Las Vegas adopts trimmed down budget

The financially strapped city of North Las Vegas adopted a reduced $816.9 million budget for 2010 on Tuesday, following a grim public hearing during which the city manager predicted even tougher economic times ahead.

The City Council, minus an absent Mayor Mike Montandon, unanimously approved the tentative financial plan that is $24.5 million less than 2009's adopted budget.

Declining revenues caused by the recession forced the city to trim about $31 million from its originally planned general fund budget for fiscal year 2010. The $202 million budget also is about $21 million less than 2009's adopted general fund budget. Sixty percent of 2010's general fund is slated for public safety.

City Manager Gregory Rose said he doesn't expect next year's budget to be any rosier.

"We are projecting revenues will continue to decline," he said. "We're preparing for the worst case scenario."

Spending on capital projects comprises 27 percent of the tentative budget. The city plans to postpone several projects to save money, including a new park at Tropical Parkway and Bruce Street.

The city also will eliminate 67 vacant positions and suspend the popular Tastes & Tunes and BalloonaPalooza festivals.

The budget is contingent upon the city coming to an agreement with its largest employee union over cost-cutting concessions and approval of a voluntary severance program for city employees.

The city's firefighters and police unions already have agreed to contract concessions including cost-of-living raise deferrals, which will save the city nearly $6 million. The city is still negotiating with Teamsters Local 14.

Rose said the city probably will ask its employee unions for further concessions next year in order to avoid layoffs.

The 2010 budget also requires using $108 million in reserve funds and shrinking the city's general fund balance from 18 percent to 12.3 percent.

Contact reporter Lynnette Curtis at lcurtis @reviewjournal.com or 702-383-0285.