North Las Vegas officials present financial update

The state isn't done with cash-strapped North Las Vegas just yet.

City officials on Wednesday appeared for the second time in front of the state's Committee on Local Government Finance to present a financial update. Committee members earlier this year were alarmed at North Las Vegas' financial disintegration and failure to balance its fiscal 2012 budget, leading to worries about potential state takeover of the municipality.

The city finally balanced the budget in August thanks to a combination of cuts, layoffs and union contract concessions that included giving up raises. The 2012 fiscal year began July 1 and ends June 30.

Committee members congratulated the city on its progress Wednesday, but Chairman Marvin Leavitt said he still would like city officials to report back in the spring, when they have a tentative budget plan for 2013.

"We appreciate the fact that you have done what's necessary to bring your situation into balance in this current year," Leavitt said. "But you obviously have some substantial work to do for this next fiscal year."

North Las Vegas could face a budget shortfall of more than $15 million in fiscal 2013 unless employee unions again agree to substantial concessions. Police, firefighters and Teamsters unions all agreed to contract concessions that expire next year.

New City Manager Tim Hacker promised the city would submit a balanced 2013 budget.

"We're going to continue to work toward stabilization," he said.

Committee members again asked about the city's collective bargaining agreements with its employee unions.

It's clear the city's ability "to operate without a deficit situation next year is very largely dependent on your ability to negotiate with the unions," Leavitt said.

"That's the reality that we face," Hacker said.

North Las Vegas was once 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 now employs about 1,300 people.

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

"I think we've made very good progress," Mayor Shari Buck said Wednesday. "I really feel very hopeful that we're moving in the right direction."

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