Wednesday, May 14, 2003 | 11:56 a.m.
A newsletter mailed by Boulder City to residents addressing the main issues in the coming mayoral race has challenger Bill Smith considering filing a formal complaint with the state over what he said is an obvious attempt to help incumbent Mayor Bob Ferraro.
The newsletter also came under attack from Boulder City Councilman Bryan Nix, who said the newsletter was "probably one of the dumbest things the city's done in a while."
The city spent $2,300 to mail the city newsletter to all residents, about 8,500 homes and post office boxes. The finances, water line and golf course were the only matters addressed in the newsletter.
Smith's campaign is largely based on his claim that, contrary to what city officials say, the new water line and golf course were bad and unnecessary investments, and the debt payments on them will eventually push the city into a financial crisis.
"My issues right from the start are the issues addressed in that mailer," Smith said. "It was to be a political promotion for Ferraro without mentioning his name."
State law prohibits governments from supporting candidates, and Las Vegas and Clark County suspend publications and TV shows during campaigns to avoid running afoul of the law.
Nix, who is up for re-election, said the newsletter creates the appearance that the city is getting involved in the mayoral campaign.
With the general election on June 3 and early voting starting Saturday, it was "bad timing" for the city to send out the newsletter last week, Nix said at Tuesday night's City Council meeting.
But Ferraro, the other council members and other top city officials defended the newsletter.
Boulder City Attorney Dave Olsen said he "dares" Smith or anyone else to charge the newsletter is intended to affect the election.
Olsen said the newsletter does not promote any candidate.
Ferraro, who said he was not involved in creating the newsletter, says the newsletter is not electioneering, but rather the city's attempt to respond to false information Smith is spreading.
The mayor said he has spoken to residents who told him they were thankful for the newsletter because it gave them the "correct information" on the contentious issues in the mayoral race.
Councilman Mike Pacini, who has endorsed Ferraro, said the newsletter "did a great job" providing residents with the facts behind these issues.
Smith said if the city was just trying to get information to the public, officials should have waited until after the June 3 election to mail the newsletter.
This is second time this month Smith and city officials have clashed over a mailed newsletter. Last week Olsen and other city officials held a news conference to denounce a letter sent to registered voters that likened a messy and rowdy group of residents to "micro-terrorists" and said the incumbent elected officials needed to be replaced.
Smith claimed Olsen implied that Smith or his supporters were behind the letter, which police said was authored by another man who used an alias to conceal his identity.
With his message of looming financial hardship, Smith took the top spot in the April primary election, with 1,784 votes, to Ferraro's 1,650 and 1,148 for Pacini.
Ferraro hopes Pacini's endorsement will swing enough votes his direction.
Other area governments are more cautious about publications and government-access television during campaign seasons.
For example, the Clark County government suspended publication of its quarterly newsletter for the fall 2002 election season to avoid being accused of trying to help any incumbents.
"We wouldn't want to be criticized for using taxpayer funds to help an incumbent," county spokesman Erik Pappa said. "We just (came down) on the side of caution."
Las Vegas suspended broadcasts of Mayor Oscar Goodman's press conferences during the primary, which he won.
Nix said during future campaign seasons Boulder City should either suspend publication of the newsletter or find more acceptable topics to include in such a newsletter.
"I don't think we could have been dumber. It addresses issues so integral to the campaign," Nix said. "This newsletter crossed the line."
But the other Boulder City officials say the newsletter addressed timely issues and was not influenced by the coming election.
City Manager John Sullard said the city puts out a newsletter two to four times a year, and has issued a newsletter in March, April or May for at least the past six years regardless of whether it was an election year.
The first newsletter of the year typically discusses the budget and any recent major projects, and that's all this latest edition of the newsletter does, Sullard said.
"We're not in the business of taking an election into consideration," he said. "We inform the public of the truth and the facts of the situation. ... The facts speak for themselves. If they don't support his position that's not my fault."
The newsletter says the city is on "sound financial ground," as Ferraro has said throughout the campaign.
Like Ferraro, the newsletter points to the city's $5 million fund reserve, called a rainy day fund by some, and notes that potential new sources of revenue, such as new land leases, are not included in current budget projections.
City officials are in the process of negotiating a lease with Solargenix, formerly known as Duke Solar, for land for a solar power plant that could bring in more than $1 million a year, Sullard said.
In its section on the new $34 million water line, the newsletter states: "Had it not been for the raw water line being put into service during the summer of 2002, the city would not have been able to provide all the water for the uses at that time."
Ferraro also says the new water line was needed to serve the increased demand. Also, having a second water line provides insurance in case something happens to the first water line, Ferraro says.
Ferraro has also pointed to city projections, which were also included in the newsletter, that show the debt on the water line being repaid for the most part with money from a quarter-cent Clark County sales tax and revenue from the new Boulder Creek Golf Course.
But Smith claims the new water line was not needed, and some of the money that will be used to pay off the water line would have come to the city with or without the new water line.
Smith also says the city never should have built the new $22.3 million Boulder Creek Golf Club, which opened in January.
The golf course, the second city-owned course, is projected to turn a profit after five years, but Smith predicts it won't meet that goal.
Ferraro disagrees. The course will make money and bring more tourists to Boulder City, which will help other businesses, he said.
City officials also say there is land set aside around the golf course for residences, which will provide a financial safety net for the course because those lots could be sold to help pay off the golf course debt. Any land sale would have to be approved by the voters.
A financial report on the first three months of golf course operations was scheduled to be presented to the council Tuesday night, but it was delayed for at least two weeks after the accountant producing the report said he needed more time.
But Smith said no matter what the report says it won't reflect the long-term health of the project.
If elected, Smith said he would try to get the city out of the golf course business by working to lease the course to a private company.
The mayor has also attacked Smith's message.
Ferraro reached out to voters with a television spot being aired on Boulder City's public access channel, in which Ferraro explains the city's reserve funds, and talks about the new water line and golf course.
Smith also had two spots on BCTV, and in one Smith attacks the city's finances, water line and new golf course.
Smith has also been working to attract new voters to his camp. In recent weeks he has delivered about 40 absentee ballot applications to voters who missed the primary.
Ferraro said win or lose this will be his last run for elected office -- the second time he has made that vow.
Four year ago the mayor said the same thing but changed his mind after a group of residents asked him to run again, he said.
"But this is unquestionably the last," Ferraro said. "My wife would kill me."
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