Floods could wash out relief fund

Tuesday, Sept. 9, 1997 | 9:34 a.m.

CARSON CITY -- A $4 million disaster relief fund created by the 1997 Nevada Legislature is facing a disaster itself amid increasing demand from cities and counties hit by severe flooding.

Henderson and Boulder City, which the state declared as disaster areas after flash flooding in August, are expected to submit large requests in their efforts to recover from an estimated $6 million worth of damage.

And Northern Nevada counties are asking for $3.6 million from the fund. Their request is on top of $8 million allocated by the Legislature to help with cleanup operations after massive flooding in January. The counties say they need the additional money in order to receive $10 million to $12 million in available federal matching funds.

State Budget Director Perry Comeaux suggested Monday that guidelines be established by the Nevada Board of Examiners, which must review applications for emergency funds before they go to the Legislature's Interim Finance Committee for a final decision.

Comeaux said some counties "may be in fairly decent shape and can do it themselves" -- paying for the repairs without asking for state help.

Gov. Bob Miller, chairman of the examiners board, said there's a partnership between local governments and the state. He said he wants to see "demonstrated need" by local governments before the examiners board allocates any emergency funds.

Secretary of State Dean Heller said without that demonstrated need, the fund could be "wiped out in six months" after only two disasters.

The fund was set up to allocate grants or make loans for repairs on public facilities hit by flooding, fire or other disasters.

The Northern Nevada counties, Comeaux said, "are really pushing" to get their money so the repair work can begin before the winter months. But he suggested they have misread the law, which provides for money to be disbursed half as a grant and half as a loan.

For example, he said, Douglas County feels the state is fully responsible for repairs of damages to the rivers in the area. But Comeaux said that is a shared responsibility with the county.

The examiners board will meet in about two weeks, at which time there may be estimates available from Boulder City and Henderson. And the board will decide if the money should be pro-rated among those governments requesting it or whether to give most of it to Northern Nevada counties.

Comeaux appeared to lean toward sharing so Boulder City and Henderson would receive part of the money and not be shut out by the North.