Council to consider surplus $3 million

Mathis Winkler

Friday, Feb. 8, 2002 | 9:45 a.m.

While other cities and governmental agencies are worried about their economic future, North Las Vegas City Council members will have the luxury Tuesday of deciding how to spend some leftover money.

About $3.4 million still remain in city coffers from the 2000-2001 fiscal year, which ended in June.

Council members traditionally have spent such extra funds on new employees, but City Manager Kurt Fritsch said he's proposing to use the money for one-time capital improvements, such as city buildings, that don't require more money in future years.

He didn't say specifically what projects he will recommend to council members next week.

North Las Vegas stands on sound financial ground, Fritsch said. But he will recommend council members hold back $2 million as a cushion until city officials have a better idea of how the Sept. 11 attacks will affect Southern Nevada's economy in the long run.

If building growth keeps up as expected and sales tax revenues don't plummet in months to come, "it's $2 million more that we have going into next year's budget," he said.

Councilwoman Shari Buck said Fritsch's plan is a good one.

"I do think it's wise to hold some money back to be prepared for a downturn in the economy," she said.

City officials are still working on budget estimates for the 2002-2003 fiscal year, which starts in July.

"I don't forsee any type of cuts," Fritsch said, adding that more parks and a focus on improving the police department would remain priorities.

Still, "we're taking a fiscally conservative approach," he said. "We can't add the number of people that we've added in the last two years," when the city hired an additional 144 employees, bringing its entire workforce to about 1,300.

Henderson's budget manager, Richard Derrick, said his city didn't follow North Las Vegas' practice of spending leftover money in the middle of a fiscal year.

But he added that many cities followed the practice.