Wednesday, April 18, 2001 | 11:27 a.m.
After criticizing a proposed change in the state's tax redistribution formula, Clark County commissioners Tuesday suggested they meet with the bill's proponents -- the city of Henderson -- to work toward a compromise.
A technical committee, even if a deal is struck, will review the existing formula to determine if it should be modified. The committee, which created the current formula, is an advisory board that makes recommendations to legislators.
County commissioners praised the decision to stick together as Southern Nevada governments to hammer out a solution, though Henderson leaders were less than enthusiastic by the options offered.
Henderson claims it has lost $24 million since the consolidated tax formula was changed in 1997. Gibson said that for four years Henderson has begged the county and technical committee members to re-adjust the tax shift, saying the new formula is draining city coffers.
"This has fallen on deaf ears for a long time," Gibson said Tuesday.
Henderson officials said the new tax formula short-changed them of tax revenues -- taken from sources including county relief taxes, cigarette and liquor taxes, motor vehicle privilege taxes and real property transfer tax -- and they are seeking $4 million more a year.
The county and city of Las Vegas would each pitch in $2 million annually.
Gibson and Henderson city officials see little hope commissioners' words Tuesday will be effective in regard to resolving their financial troubles.
Officials from Las Vegas and Clark County have privately questioned Henderson's need for the money, pointing to a new $60 million City Hall that soon will be built adjacent to the existing city center.
The city is using about $4 million a year from its consolidated tax revenues to pay the debt service on the bonds.
Not only have Henderson leaders heard criticism from other jurisdictions, but they are well aware of who the chairman and co-chairman of technical committee are -- Guy Hobbs, a finance consultant for Clark County and Marvin Leavitt, Las Vegas' chief lobbyist. Henderson finance director Steve Hanson is also a member of the committee.
Henderson has in years past tried to get the Legislature to change the formula, only to have lawmakers ask them to work with other governments and the technical committee. Each effort failed.
"We in good faith were at the table but we were not put on the agenda for consideration," Vicki Taylor, Henderson's assistant to the city manager said of the technical committee. "There is no further appeal process for us; we have no place left to go except to the state Legislature."
Hobbs, who has also served as the county's finance director, said he and Leavitt represent several government agencies and make their decisions based on good policy, not favoritism.
"Our clients run both sides of whatever lines you would want to draw," said Hobbs, who also refuted Henderson's claims that the tax formula wasn't placed on a technical committee agenda.
County Commissioner Yvonne Atkinson Gates called the proposal "bad public policy" because it changes a state formula to help one government entity.
The shift would cost the county townships of Paradise and Winchester about $2 million and $2.5 million, respectively, over the three years the revamped formula would be in place. It would cost the city of Las Vegas about $16 million.
Commissioners agreed that some tinkering could be done to Henderson's proposal, but said they don't want to see one government agency with a windfall of funds while others suffer.
"One of the most important things to do is not pit ourselves against one another," Commissioner Erin Kenny said. "To have a great winner and a great loser is not the way to resolve this thing."
Gibson, who said the city was told it would lose $1 million after the tax shift in 1997 and in reality lost $6 million, is aware of how formulas can benefit some governments while damaging others.
"When they say there shouldn't be any great winners or losers, they're ignoring what happened in 1997," he said.
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