No aid for Henderson, Boulder City damage

Thursday, Nov. 6, 1997 | 10:06 a.m.

CARSON CITY -- Boulder City and Henderson may not get any state disaster relief funds because they've been careful in managing their own money.

The state Board of Examiners, headed by Gov. Bob Miller, recommended denial Wednesday of requests from Boulder City for $1.6 million and from Henderson for $510,000 to help with repairs on the damage caused by flash floods in August.

The board based its recommendation on the suggestion of state Budget Director Perry Comeaux, who estimated that Boulder City has an extra $2.8 million in its bank account and Henderson has $3.1 million in reserve that could be used for repairs.

Secretary of State Dean Heller, a board member, told Boulder City Councilman Robert Kenneston and City Manager John Sullard, "You're being punished because you've been fiscally prudent."

Kenneston replied, "We're not the fat cats that some people may argue."

The recommendation now goes to the state Legislature's Interim Finance Committee and there's expected to be pressure from Southern Nevada lawmakers to approve the requests from the two cities -- either in full or in part.

The 1997 Legislature created a $4 million fund to help local governments out in emergencies. But it never included guidelines on how the money should be distributed.

Between the flooding in January in Northern Nevada and the flash floods in the two cities in Southern Nevada, there were requests for $10.9 million from the fund that held only $4 million. The requests were then whittled or withdrawn, leaving only Boulder City, Henderson, Douglas County and Lyon County.

The board voted to approve the full request of $1 million for Lyon County, which has been facing financial problems. It also approved $469,327 for Douglas County, down from the $571,795 requested.

Kenneston and Sullard tried to convince the board that Boulder City has been building up its reserve to meet an expected downturn in revenues in the future. Sullard said a new law changes the distribution of taxes to cities and Boulder is expected to suffer under the new allocations.

"If the Southern part of the state is cut out, this is not fair," Sullard said. He argued that Boulder City is "falling through the cracks" under the criteria established by the state budget office.

But the governor said since there is a limited amount of money, it should be distributed based on need, not want. If the state allocated the money on "want," Miller said it would be all gone on a first-come, first-served basis and there would not be any left for local governments that suffer disasters in later months.

Boulder and Henderson did not qualify for federal disaster funds. But the Clark County Regional Flood Control District gave $1.2 million to Boulder City and $775,000 to Henderson. Boulder City proposed putting up $540,509 to match the state grant and Henderson was going to spend $765,139.

The governor told the Boulder City officials they could carry their fight to the Interim Finance Committee. But Kenneston made a pitch, asking the examiners board to give them some money, rather than shutting them out. "I'd like to carry a better record to the IFC," he said.

Kenneston said of the city's ending-fund balance estimated by the state budget office, only $719,000 is uncommitted.

Comeaux said there was no argument about the damage done. But there was nothing in the law to guide the examiners board on how it should make its allocation. He said he used a formula looking at the ending-fund and beginning-fund balances of the local governments requesting the money to see if they could cover the costs.

Attorney General Frankie Sue Del Papa, the third member of the examiners board, left the meeting before the flood relief discussion, but said she agreed with Comeaux.