NLV officials say growth causing financial strain

Lisa Snedeker

Friday, Jan. 29, 1999 | 11:46 a.m.

North Las Vegas ended its last fiscal year in the black, but officials warn that explosive growth is placing a strain on city services as well as its finances.

City Manager Pat Importuna told City Council members Thursday during a mid-year budget review that other than unanticipated events, the city's current budget is on course.

"But unfortunately, the greater-than-anticipated ending fund balance is shrinking," he said.

The current fiscal year began July 1, 1998, and ends June 30. At the end of the 1997-98 fiscal year, the city had a balance of $1.4 million compared to $6.6 million at the end of 1996-1997.

Importuna said the cost of employees and equipment is outpacing the city's revenues.

"We need to be very cautious in expanding the employee base in the future," he said. "I have told the department heads ... that foreseeable in the future there could be an employee hiring freeze."

The most recent state estimates show North Las Vegas with a 14.7 percent growth rate and a population of more than 103,000.

As the city grows, so does its need for increased public safety and recreational opportunities, Importuna said.

"This will be costly," he said.

The council unanimously agreed to follow the staff's recommendations concerning budget changes including the establishment of an employee benefit fund for retirees and others. For example, former City Manager Linda Hinson was given $147,000 in severance pay out of the city's contingency fund after the council voted not to renew her contract in July.

"We could be having groups from the police and fire department leaving (retiring) and that can be costly," Importuna said.

Mayor Michael Montandon and other council members expressed concern that there are no funds earmarked for the depreciation of buildings such as City Hall, the detention center and the police headquarters. Neither are there funds for the depreciation of police cars or fire trucks.

"I think if you actually imposed depreciation on everything, you would have a big shortfall in meeting the service and potentially increasing the service," Importuna said.

Councilman John Rhodes emphasized that the city needs to provide more services to its residents.

The city manager said he would have the staff investigate the depreciation costs, prioritze the needs and report back to the council.

Vytas Vaitkus, city finance director, also previewed the millennium budget.

He told the council the projected revenue over expenditures is $659,000.

"There are $17 million in requests," Vaitkus said. "It will be a difficult task to sort out."

The city is required to file its tentative budget with the state April 15. The council will hold a public hearing and adopt the budget for Fiscal Year 1999-2000 on May 18, Vaitkus said.

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