Sliding sales revenues may jeopardize county services

Adrienne Packer

Wednesday, Nov. 28, 2001 | 9:35 a.m.

Plummeting sales tax revenues combined with the threat of a utility rate hike will likely drain millions from Clark County's general fund, threatening services and future projects.

Clark County's portion of consolidated tax revenues dropped $3.2 million during September compared to revenues collected in September 2000, said county Finance Director George Stevens.

In September 2000 the county collected $27 million in consolidated tax revenues; it brought in $24 million during September, when tourism dropped after the terrorist attacks.

The dip in tax revenues -- which are distributed by the state and consist mostly of sales tax collections -- is the most significant hit Stevens has ever seen the county take.

"That's all general fund money, which means it will reduce the money we have available for capital programs," Stevens said. "We have put a number of things on hold."

Stevens said major projects already out for bid, such as the Harmon Avenue extension and Las Vegas Beltway work, will continue. Others in the design stage -- which have yet to be publicized -- will be delayed.

One of the more significant projects is the upgrading of some computer systems in the county, Stevens said.

"It doesn't allow us to spend excess on capital projects like we have in the past," Stevens said. "Our computer equipment ... some of what was going to be replaced was old stuff. You can get by doing that for a while, but you can't get by doing that for very long."

The county's general fund coffers will also suffer if Gov. Kenny Guinn approves Nevada Power's request for a $929 million rate increase. Stevens estimates the county's utility bills would increase by $5 million a year.

Stevens said the county's hiring freeze will continue, and the county will tap into its $26 million surplus from last year to make up for losses.

He said the county may be in a greater economic crisis if the county's investments during the past two years had not been so successful.

The county shifted 20 percent of its portfolio -- about $2.5 million -- from short-term bonds to longterm bonds, Stevens said. As a result, the county earned about $6 million in profits.

"It hasn't saved the county, but we earned a lot more on investing county money than we have in the past," Stevens said.