North Las Vegas facing dire straits again next fiscal year

North Las Vegas could face a budget shortfall of more than $15 million next fiscal year unless employee unions again agree to substantial concessions.

That was the message delivered to City Council members Wednesday during an update on the cash-strapped city's finances.

The city had a difficult time balancing its current budget, leading to worries about potential state takeover of the municipality. Officials finally balanced the 2012 budget in August thanks to a combination of cuts, layoffs and union contract concessions that included giving up raises.

Al Noyola, acting finance director, said the city will face budget troubles again next year unless the unions agree to the same concessions.

Police, firefighters and Teamsters unions all agreed to contract concessions that expire next year.

"If we are able to go back to our bargaining units just to stay where we are … that really would take care of the vast majority of the deficit" in fiscal 2013, Councilwoman Anita Wood said.

Noyola also said that the city is spending nearly the same amount on employee salaries and benefits as it was in 2004. But the city has 300 fewer full-time employees than in 2004.

"It's costing us more monies on average'' per full-time employees, he said.

North Las Vegas was among the country's fastest-growing cities and flush with cash. But plummeting property tax and other revenues during the economic downturn forced officials to trim more than $60 million from the city's general fund and cut or freeze nearly 1,000 positions. The city employs about 1,300 people.

The city's ending general fund balance -- its savings account -- plunged from a healthy 23.1 percent to a shaky 4.4 percent of expenditures. That balance is now about 5.3 percent, Noyola said.

The council Wednesday also approved a resolution that will require the city to maintain an 8 percent ending fund balance.

The council in May approved a 2012 operating budget of $125 million.

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