White Pine County’s financial condition worsens

Monday, Sept. 26, 2005 | 10:07 a.m.

CARSON CITY -- White Pine County may have to close its senior citizens center and sell its golf course because of its deteriorating financial condition.

The county ended last year $1.3 million in the red and is headed for another $1 million deficit this fiscal year unless there is a major turnaround, officials said.

Marvin Leavitt, chairman of the Local Government Finance Committee, said White Pine County has a "huge problem" that can be solved only by "severe measures" -- cutting services and raising taxes.

But, he added, the county's citizens don't appear willing to do either. State tax department employees Michael Griffin, supervisor of local government finance, and Terry Rubald, chief of the division of assessment standards, outlined the financial problems facing the eastern Nevada county at Friday's meeting of the Finance Committee.

The state Tax Department took over operation of county government earlier this year in an effort to put it in the black.

Griffin and Rubald were to be in Ely today to talk to seniors about shutting down the center. But Griffin told the Finance Committee that keeping the meals on wheels program was essential for the senior citizens.

Griffin and Rubald are to return to Ely on Oct. 24 to present the state's plan for pulling the county out of the red. There are indications that if things don't change, the county may not be able to make its payroll later this fiscal year.

The general fund budget of the county is $12 million this fiscal year, Griffin said.

He said options being considered include instituting franchise fees, business taxes and building taxes, as well as increasing the charges for ambulance services.

The county golf course, meanwhile, is losing $12,000 to $15,000 a month, officials said. Mary Walker, a member of the Finance Committee, suggested getting the course appraised as a first step toward a possible lease or sale.

Rubald said there could be a hitch in selling the course because the National Park Service invested money in it.

White Pine County Commission Chairman John Chachas said he put the issue on the agenda of a commission meeting. He said another suggestion to cut costs was that county employees contribute 10 percent more towards their health insurance.

That suggestion sparked a recall effort against three of the five county commissioners.

Chachas also complained that when he asked for accountability of one employee who was absent from the office often, that resulted in Chachas "being sued for harassment."

But, Chachas said, "we will swallow the bitter pill" of tax increases and spending cuts.

County Commissioner Gary Perea told the Finance Committee that while it is true that the County Commission has spent more money than was being collected in taxes, the expenditures were necessary.

Perea complained that the county's economy has been on the decline for 25 years.

Any expenditure by the county of more than $250 must now be approved by the state officials overseeing the operation, and the state has collected the "credit cards" of county officials.

The County Commission made some personnel cuts prior to the state moving in, Griffin said.

State officials suggested the county refinance some of its bonded indebtedness. That would have saved $20,000 in cash flow in 2006 and $75,000 in 2007. But the county didn't want to pay the $47,000 refinancing cost.