North Las Vegas mayor seeks revision to way cities tap restricted funds

John Lee was serving in the state Senate when he co-sponsored a bill in 2011 that set a 10-year deadline for cities to stop dipping into enterprise funds to cover shortfalls.

Now, as mayor of North Las Vegas, Lee is asking state lawmakers for a slight revision that allows cash-strapped cities to continue the practice past 2021 — but only if they promise to reduce those fund transfers by at least 3.3 percent annually.

Lee will travel Monday to Carson City to testify before the Senate Government Affairs Committee in support of Senate Bill 78, which would create an alternative mode for North Las Vegas and other cash-strapped cities to stop tapping into restricted funds as a way to pay for daily operations.

Shortfalls in a city’s general fund typically affects day-to-day services like police, fire, parks and libraries.

If the measure becomes law, then cities would have to submit a plan to state lawmakers by next year demonstrating how they plan to end the reliance on enterprise funds.

In a statement, Lee said SB78 “adroitly preserves the legislative intent from 2011 while also recognizing today’s challenges.” Lee also said the measure would protect taxpayers and increase the city’s bond rating.

North Las Vegas transferred more than $32 million from the city’s utility fund to the general fund in 2011, but it managed to reduce that amount to $23 million for the current fiscal year.

Contact Art Marroquin at amarroquin@reviewjournal.com or 702-383-0336. Follow @AMarroquin_LV on Twitter.