City Council to consider increase in property tax

Dan Kulin

Wednesday, Jan. 22, 2003 | 9:18 a.m.

In the next six months the North Las Vegas City Council will decide whether to raise the city's property tax rate as well as water and sewer rates, city officials said Tuesday.

Mayor Michael Montandon said water and sewer rates will probably go up in North Las Vegas and throughout the Las Vegas Valley. But Montandon said he didn't know if the city property tax will be increased.

The potential tax and rate increases were discussed Tuesday during the council's mid-year budget review meeting. The meeting focused on the city's finances for the current fiscal year, which ends June 30.

City Finance Director Phil Stoeckinger said an independent firm is currently studying North Las Vegas' water and sewer rates. The council will receive a report on the study within six months, he said.

Stoeckinger and Montandon would not speculate on how much the rates might rise. "But I think we'll be consistent with the rest of the valley," Montandon said.

North Las Vegas officials do know how much a property tax rate increase might be, if one is needed. Earlier this month Stoeckinger presented the council with budget projections that included a 2-cent property tax increase. He reminded the council of that scenario again Tuesday, but there was no discussion of whether that possible increase could become part of next year's budget.

City taxpayers currently pay $3.38 per $100 of assessed value, which Stoeckinger has said costs a taxpayer with a $150,000 home about $1,770 a year. A 2-cent increase to the tax rate would add about $10 a year to that taxpayer's annual tax bill, he said.

Montandon said if the council did increase the property tax rate by 2 cents, that increase would be insignificant compared with the 15-cent increase Gov. Kenny Guinn proposed to take effect in 2005.

"The state's budget crisis makes this look awfully rosy," Montandon said, referring to the situation that has Guinn asking legislators to approve about $1 billion in new taxes.

Montandon also said that while North Las Vegas' property tax rate is higher than it is in other valley municipalities, the city's tax rate is less than 2 cents higher than it was five years ago.

Meanwhile this year's budget is expected to meet budget projections, despite a couple of surprises.

Stoeckinger and City Manager Kurt Fritsch told the council the city will see $600,000 less than expected from consolidated tax revenues and legal fees will cost $700,000 more than projected.

The legal fees were budgeted to cost $500,000 this year, but are instead expected to cost $1.2 million, Fritsch said.

Stoeckinger said the added costs mostly came from having to hire outside legal counsel to represent the city in several protracted legal battles with former employees.

But thanks to some cost savings and some proposed license and permit fee increases expected to be approved, overall the $97.8 million general fund is expected to meet projections.

"We think we're in a very sound financial position but it will be a very tight year," Fritsch said.

City projections show expenses exceeding revenues by $2.8 million this fiscal year. To cover the difference, the city will dip into the general fund's $10.9 million balance, money left over from previous years' budgets.