Las Vegas plans to keep same city tax rate

Wednesday, March 23, 2005 | 9:23 a.m.

Mark Vincent, the man in charge of Las Vegas' finances, said Tuesday that there are no plans to increase the city's portion of the property tax rate this year.

But there are no plans to reduce it either, he said, despite the fact that city's fiscal year 2006 revenue is estimated to come in at $472.4 million, a $51.1 million jump compared with the current fiscal year.

Vincent told the Las Vegas City Council during its first budget workshop that, with projects ranging from funding for a safety net for inmates released from prison to Fremont Street landscaping, the council has proposed or requested construction projects that are $20 million more than what is available in the proposed capital budget.

The city council asked for another workshop so members can hear from each department head and then set priorities for funding programs so the council can deliver a balanced budget by June 1. The next workshop will be May 2.

Mayor Oscar Goodman said the council can consider priorities after hearing from staff what programs are useful and which are not.

"It will be time-consuming," he said.

Since the Legislature hasn't passed any bills concerning property taxes, city officials said they expected less revenue and were planning to watch and wait.

"Whatever happens, there will be a negative impact on what's been normal for the past 12 years," Vincent said.

In recent years, revenue from property taxes has typically increased by about 10 percent a year. With the Legislature considering ways to lower property tax bills, Vincent said they are projecting a 7 percent increase to the revenue from property taxes. The tentative 2006 budget includes an estimated $7.4 million in additional revenue from the rising property tax collections, which translates to 14 percent of the new revenue from all sources coming to the city.

Last year the council approved a $1.l billion city budget, city manager Douglas Selby said. This year's total package will stay about the same level with a tentative general fund budget of $472 million.

The council members reviewed a broad-brush picture of where the money could go, including paving, parks and programs.

The most expensive project requests listed were $25 million for the Freedom Park Sports Complex on Mojave Road, followed by $21.3 million for Alexander Hualapai Park fields in the northwest valley.

Councilman Larry Brown said that continued population growth meant a natural increase in city services. However, instead of increasing the size of government annually, officials need to set priorities.

For example, player rates and rounds of golf are not supporting the Durango Hills Golf Course. There's a projected $150,000 shortfall this year at the golf course, including operation and maintenance.

"This is one example of a project in the future that the city should stay away from," Brown said.

Brown called on city staff to make the budget more efficient.

"I, for one, am not going to approve new programs without eliminating other programs," Brown said.

One program in jeopardy under the 2006 budget is the Neighborhood Services Educational and Vocational Opportunities Leading to Valuable Experience program (EVOLVE).

For the past two years EVOLVE has operated on a $1.75 million federal grant secured by Sens. Harry Reid, D-Nev., and John Ensign, R-Nev., with funds from the federal Labor Department with additional money being passed through the state. EVOLVE helps former felons reacclimate to society.

There is a proposal to include chronic inebriates in the program that helps people find an apartment and a job.

The program is given credit for keeping 90 percent of its participants - 241 of 268 - from being rearrested.

But the grant funding the program ends on June 30.

Lisa Morris of the city's Neighborhood Services said that the city has asked the senators for another $500,000 to extend the program, but no funds are available so far.

When a felon leaves prison, he or she gets $21 in cash and a bus token to downtown Las Vegas. Prisoners in jail cost society $73 a day at the state level, or $26,000 a year. EVOLVE can keep a person for $5,000 annually.

"We deal with the brunt of the issues," Councilman Lawrence Weekly said, noting that federal, state and local prisoners join the program operated by the city and they represent all races.

Councilman Gary Reese suggested that the city ask for funding from Clark County and the other cities.

Morris said that County Manager Thom Reilly supports the EVOLVE program, but the county has not offered any funding.

Individual council members also asked to add specific projects during the workshop.

Councilman Michael Mack asked staff to add $1 million for the design of playing fields at a vocational school site in the north west and another $450,000 to Floyd Lamb State Park for redesigning 60 acres.

With $1 million in the artificial turf fund and another $1 million requested in 2006, Weekly asked to add Ed Fountain Park, near Decatur Boulevard and Vegas Drive, to convert grass to artificial turf.

Two other parks, both in Reese's district, also need artificial grass.

Replacing grass with artificial turf could cost from $150,000 to $3 million.

Councilwoman Lois Tarkanian asked for funds to improve fields at Rainbow Family Park and $9.2 million for a new recreation center in her Ward 1 district.

Stupak was on the projects list last year, but did not get priority for funding. The center is a candidate for replacement, Vincent said.

"Could this project be moved up?" Tarkanian asked.

Brown interjected, calling for the mayor to work with the Clark County School District to review and eliminate after-school programs duplicated at schools near community centers.

"There's no benefit to the city," Brown said, adding that he preferred the school district offer such programs.

There's $4.6 million left in a bid reserve fund, created last fall, but low bids on city projects are consistently running 10 percent to 40 percent higher than estimated, Vincent said. By the end of the year, the fund will be empty.

"Without the bid reserve fund, projects will have to be shelved, like last fall," Vincent said.

An idea to turn the downtown post office into a museum will be held until 2007. In the coming year the city estimates a need for $3 million to design and plan for renovating the building at Stewart Avenue and Third Street, Vincent said.

The city is considering inviting a nonprofit organization to run the future museum, since the city doesn't have enough staff to operate it.

Another $3 million is in the budget for landscaping at the Downtown Entertainment District and $1 million goes for urban pathways.

The city has plans to link high-rise buildings, businesses and residences to pocket parks by developing urban trails.

The city is also planning to place utilities underground, first surveying sewer and water pipes and utility boxes for upgrade.

It could cost the city $500 million to put all utilities underground downtown, Vincent said. City planners need to create an annual fund for the underground utilities.