Costs of labor central to council budget talks

Erin Neff

Thursday, April 27, 2000 | 11:42 a.m.

Budget facts

Highlights of the proposed 2001 fiscal year budget:

The newly enlarged Las Vegas City Council led by first-year Mayor Oscar Goodman faced its first real fiscal task Wednesday, struggling through both its policy decisions on the proposed budget and the future cost of labor.

The budget workshop was designed to allow the council a chance to explore its policy options, such as whether it needs to raise city fees or whether it should create a proposed new enterprise fund to track development costs and revenues.

Instead the lengthy session at the Reed Whipple Cultural Center at times turned into a line-by-line review of new positions and office expenses.

But it wasn't the four council members facing their first budget who raised the most concerns.

Councilman Larry Brown, elected in 1997, grilled staff on adding new positions amid rising labor costs that account for 46 percent of appropriations in the tentative 2001 fiscal year budget, which begins July 1.

In total, city department heads requested 213 new full-time positions, even though finance director Mark Vincent recommended the council approve just 46 of them.

"Positions are a critical policy decision we have to make," Brown said, defending the time and attention he was devoting to the line-by-line review.

Then with the sound of tap shoes clattering in another room at the cultural center, Brown accused department heads of "gamesmanship" and dancing around the tough policy decisions.

Brown alleged the staff purposefully asks for more positions than needed just to play a sort of budget game that results in approval for at least some positions.

During the fiscal year 2000 budget, 171 new positions were requested and 72 of them approved.

The current revenue growth for the city covers contractual salary increases for employees. But an internal audit released last month suggests if labor costs keep rising, the city may not have money in the general fund to cover the expenses.

That audit suggested tying cost of living adjustments to annual increases in a fixed index, like the Consumer Price Index.

Councilwoman Lynette Boggs McDonald suggested the city implement a policy like that to provide leverage when the city enters collective bargaining. All three contracts governing the city's labor force expire in 2002.

"I'd like to know whether this is the time to get tough, or just begin thinking about getting tough," Goodman asked.

City Manager Virginia Valentine said the proposed budget includes many initiatives designed to get fees to cover the services they represent. She also said she is preparing to ask the council to approve tying cost of living adjustments to a fixed index for the city's 250 appointed employees.

Those employees are not covered by collective bargaining, but approving such a policy could provide leverage to attach similar policies to the unionized labor force.

"That sends the message and signals that it's something we want to discuss," Valentine said.

The tentative fiscal year 2001 budget features no property tax increase, and roughly $30 million for park projects.

The council will vote to approve the budget May 16.

City Councilman Michael McDonald did not attend Wednesday's budget workshop.

Erin Neff covers Las Vegas government for the Sun. She can be reached at (702) 259-4062 or by e-mail at erin@lasvegassun.com