Voters to decide on children’s hospital

Adrienne Packer

Friday, Feb. 2, 2001 | 11:23 a.m.

Clark County's Debt Management Commission voted unanimously Thursday to place an $80 million bond question on June's municipal ballot for the construction of a free-standing children's hospital.

Board members had no choice but to approve the question, and some warned that the issuance of the bonds could put some government entities at risk financially.

"There are some people here who have some serious fiscal questions about it, but we'll leave it in the good hands of the voters," said Clark County Commissioner Myrna Williams, who is chairwoman of the debt panel.

Attorneys for the debt board, which is made up mostly of representatives from the valley's cities and the county, said the board was bound because of a petition circulated by proponents of the project last summer.

A collection of pediatric physicians, calling themselves the "Caring for Children Committee" had to collect some 39,000 signatures to push the bond question to a vote; it captured more than 62,000.

The children's hospital, which would be operated by the county-run University Medical Center, would be funded by tax-neutral bonds over a 20-year period.

Because of their tax-neutral status the bonds would not require a property tax increase. However, residents would not receive tax cuts they would otherwise see as a result of other capital bonds expiring.

Although the hospital bond issue doesn't affect the government entities' tax rate, there are still some concerns, Williams said.

Entities' tax rates are not supposed to exceed 90 percent of the tax cap. Laughlin, North Las Vegas and Mt. Charleston's fire district are already over the 90 percentile and Las Vegas is teetering on the edge.

Williams said the Las Vegas Valley faces potential emergencies like deregulation of the electric power industry and is continuing to deal with a population boom.

She said the money from retiring bonds that would be used for the children's hospital might be needed to help tackle emergencies.

"We have an energy crisis right now, the economy isn't looking all that great and we have all this incredible growth going on," Williams said. "These are things in the past I have called survival issues."

County Finance Director George Stevens said keeping within the 90 percent of the tax cap is important because it keeps funding available so the government can quickly address public safety issues as the valley grows.

Anytime a government exceeds 90 percent, it must weigh the project and determine what's good for the county.

"The Debt Management Commission is not supposed to make a determination based on public need for a project until there are entities over 90 percent," Stevens said. "Once they're over, they are supposed to look at the greater good of the county."

Las Vegas City Councilwoman Lynette Boggs McDonald said it's difficult to balance her duties as a councilwoman and as a debt management board member. While her constituents might prefer the potential tax cuts from retired bonds, she had no choice but to vote for the hospital.

She also shares Williams' concerns. Boggs McDonald said sales taxes have been at a record low, and if they don't improve, the city could potentially be looking at a hiring freezes.

"We have so many public needs when you have a growing community such as ours," she said. "The 90s was such a bullish market. There was a lot of prosperity and a lot of almost discretionary dollars available to all entities."

Boggs McDonald said sales tax revenues have been at a record low and if they don't improve, the city could potentially take measures as serious as hiring freezes.

The proposed 152-bed children's hospital has been controversial since it was first introduced last spring.

Commissioner Erin Kenny had conducted surveys and worked closely with UMC physicians before bringing the proposal before her colleagues. Board members who believed they were ambushed by Kenny and her support group of physicians were labeled "anti-children" after they voted to delay the project in favor of feasibility studies.

After the vote, the physicians circulated the petition which ultimately forced the bond question to be placed on the ballot.