Thursday, June 5, 2003 | 9:21 a.m.
Defeated Boulder City mayoral candidate Bill Smith plans to send a formal complaint to the secretary of state's office today, claiming the city's May newsletter violated state laws banning governments from supporting candidates.
The newsletter, which went to about 8,500 residents May 9, addressed the city's finances, the new water line, and the new city-owned Boulder Creek Golf Club -- the top three issues Smith raised in his campaign against incumbent Mayor Bob Ferraro. Ferraro won the election Tuesday, beating Smith by 18 votes.
During the campaign, Smith had said the water line and golf course were bad investments for the city, and the roughly $56 million loan that paid for the projects would come back to financially cripple the city.
But Ferraro and other city officials said the projects would generate enough money to pay for themselves. The newsletter backed those claims, although top city administrators said it was just to inform the public and did not endorse anyone.
Smith said the newsletter was a blatant attempt by the city's administrators to sway the election in Ferraro's favor.
Last week Ferraro attacked the newsletter's information on the golf course, saying it was misleading. It said the course, which opened Jan. 4, would make a $60,000 profit by the end of June. That seems nearly impossible now, as the course showed a roughly $480,000 operating shortfall through its first four months.
Ferraro called for the resignation of City Manager John Sullard over the discrepancy.
Smith said he plans to cite in his complaint to the secretary of state the new golf course financial figures as evidence that city officials knew the information in the newsletter was inaccurate.
Smith said that while he's sure the newsletter tipped the election in Ferraro's favor, he does not plan to challenge the result of the election.
"I want the city to be put on notice that they can't do this again," Smith said.
Sullard said Wednesday that he was still confident the newsletter was legal.
"Our city attorney reviewed it and he decided it would pass muster," Sullard said.
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