City staying budget-conscious

Diana Sahagun

Tuesday, Feb. 6, 2001 | 10:37 a.m.

With signs that the economy is slumping and with utility rates soaring, city of Las Vegas officials are considering a hiring freeze and other ways to save money in case of a recession.

The city's fiscal year ends June 30 and usually at this point officials are evaluating how much money can be carried over into the next fiscal year for one-time unfunded projects such as parks and new buildings.

This year, however, officials are thinking about keeping that leftover money in the bank in case of tough times ahead.

Leftover funds are the result of higher revenues or lower expenditures than estimated, City Finance Director Mark Vincent said.

With interest rates being lowered in an attempt to revive the economy, with layoffs and slowdowns making national news and with sales tax revenues increasing more slowly than projected, those leftover funds are being eyed more carefully by the City Council.

On Wednesday the City Council will discuss how to protect itself against budget shortfalls next fiscal year, including holding the leftover funds in a reserve account.

"Building permits are down and sewer connection fees are down. They are both indicators of residential development," Vincent said. "There are no large casinos under construction (in Las Vegas), and we are fearful of a recession because the economy is slowing nationally and locally."

Other cost-saving measures to be discussed are a hiring freeze affecting all "nonessential" positions and conserving energy.

With California facing an energy crisis and electric rates increasing in Las Vegas, the city will have to find revenue to pay higher utility bills.

The city's total utility budget now is $12 million a year but it could jump 30 to 50 percent, Vincent said.

"Clearly, electrical bills are one of our largest bills," Vincent said.

Mayor Oscar Goodman said Monday that the city is in good shape, but must take a proactive approach and not wait until a financial crisis is imminent.

"We have to be lean and mean and have no fat, as far as expenditures and personnel," Goodman said. "We will not cut funding to projects."