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Detention Officer Tyrone Bentley unlocks food flaps in cell doors during lunchtime at the North Las Vegas Detention Center.
Friday, July 6, 2012 | 2 a.m.
North Las Vegas to transfer inmates
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KSNV reports that the cities of North Las Vegas and Las Vegas have come to an agreement that would have the Las Vegas Detention Center accept North Las Vegas Detention Center inmates to help North Las Vegas close a $30 million budget gap, June 20.
Sun coverage
Horse trading has long been a part of politics. But trading inmates for broader agreements on taxes might be something new, even for Nevada.
When the city of Las Vegas agreed to house North Las Vegas inmates, saving its cash-strapped northern neighbor as much as $16 million a year, Las Vegas included a caveat: It could terminate the agreement if North Las Vegas went rogue in the fight over how tax dollars are distributed between cities and counties.
It’s an unusual clause in the written agreement, according to local government officials, that would seem to give Las Vegas an advantage in any political fight that breaks out over how the state divides money.
A state committee is studying how to change the formula used to divvy up tax dollars between cities, counties and townships throughout the state.
In the eyes of some local officials, the consolidated tax, or “c-tax,” — a combination of sales, motor vehicle, cigarette, liquor and property taxes — is grossly unfair. The formula is based on the assessed property values from 1981.
North Las Vegas, the symbol of municipal woe in the Great Recession, has been one of the most vocal critics of the funding formula.
“We believe our base is $8 million to $15 million low,” said Tim Hacker, North Las Vegas city manager.
Boulder City, for example, got $557 per resident through the c-tax formula in 2011. Las Vegas got $388. North Las Vegas got $171.
Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, is heading the interim committee to rejigger the formula. Kirkpatrick insists the formula will be based on fair policy, not politics. No one, she has made clear, is going to get a big check. To her home city, she has said that the resulting legislation won’t be a salve to the city’s financial woes.
But the fight over c-tax is sure to be a heated one during the 2013 Legislature. The formula has turned political in the past, and it is a zero-sum game — no one can win unless someone else loses. For every additional dollar North Las Vegas gets, for example, that’s a dollar less for everyone else.
But North Las Vegas also needs to save money now.
To that end, it reached an agreement with Las Vegas to house its inmates at the Las Vegas Detention Center. By closing its own jail, North Las Vegas will save $11.5 million the first year and grow to $16 million annually after that, according to city officials.
So the two issues — the jail and the bargaining position on the c-tax — got combined.
According to the agreement — the hammer that could be held over North Las Vegas’ head — Las Vegas could pull out of the agreement within 120 days if “Las Vegas has reasonably determined that North Las Vegas has not collaboratively worked and cooperated in good faith with Las Vegas to have the Nevada Legislature create a fair formula or methodology for the distribution of consolidated tax distribution.”
Hacker said the agreement doesn’t cede the city’s authority.
“We’re definitely not going to turn over our negotiating status. It’s not going to push us away from table,” he said.
Mark Vincent, Las Vegas finance director, said the jail agreement benefited both parties — Las Vegas had some empty space in its detention facility and will get about $6.8 million a year in rent.
But he acknowledged the clause about the c-tax was Las Vegas’ idea.
“This agreement was driven more by the need for North Las Vegas to reduce its cost,” Vincent said. “On a separate plane, when we’re working with the interim committee on the c-tax, we wanted to make sure we’re working collaboratively through that process.”
Hacker stressed that no one is looking to hurt anyone else.
“From a good public policy perspective, the interim committee is evaluating the formula. It’s not the intent to dramatically help or hurt anyone,” he said. “We want to create a more equitable situation.”
Despite the policy focus, politics often wins the days.
Indeed, the lessons from 2001 — the last time the state changed the formula — are still fresh.
Back then, Assembly Speaker Richard Perkins adjusted the c-tax formula to benefit Henderson. Perkins, of course, not only represented Henderson but was its police chief.
Kirkpatrick, who has sometimes sparred with elected officials of her city, insists that politics won’t come into play.
“At the end of the day, it comes down to the policy,” she said.
"This agreement was driven more by the need for North Las Vegas to reduce its cost,"
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There it is..
Sure, lay off a couple of firefighters and declare and financial emergency. Why doesn't the city just declare bankruptcy, then consolidate services, fire, police, etc. I know in doing that they could lose their jobs, but didn't you get into politics to make the place better than how you found it.
The city put that clause in because NLV cannot be trusted to honor any agreement, verbal or written. And Markey, just an FYI, NLV isn't really saving that much money...it's still going to cost NLV 15 million a year. I wonder how much NLV is going to lose when those former employees no longer shop in NLV, pay property taxes in NLV, etc and take their money (what's left) to Las Vegas, Clark County , evenout of state. Mr. Hacker...ever hear of karma?
The states is as bad as the feds. Taxes are not distributed fairly, how does Boulder City get more C tax than Las Vegas, that is ridiculous. Las Vegas should be getting much more than Boulder City when it comes to tax collection. Why would someone living in Las Vegas want more money going to other cities, counties and township throughout the state when it pays the most in taxes. I hope the state legislators look at it and make a change.
And what did Henderson Do with the extra money. They did not use it on any type of comprehensive planning. Where every time you go out it takes an hour in traffic to get a loaf of bread. Even with Miles and Miles of Ugly Strip Centers continually repeating themselves. Summerlin stands Head and Shoulders above any other region in the valley with their Comprehensively Planned Community developments.
A Fair Funding Formula for all of Southern Nevada is more important than different localities playing against each other. With the Valley continually being played for suckers by the North, it's no surprise we do not have a Medical School and other necessary infrastructure to be a Real City. Look I see another empty corner, so lets build a Bar or Service Station - there's a shortage you know.
"Summerlin stands Head and Shoulders above any other region in the valley with their Comprehensively Planned Community developments"
There is no rival. Best place to live..bar none.
Please Ms. Kirkpatrick balance the C-tax back equally to ALL the State cities equally per capita with no other weird political adjustments. You are in leadership now, take no bull, write the bill, allow no amendments! Call me if you need help kicking butts! God bless.
Saving Money is great
No new tax's please
When you have left your own butt hangin out over a fire like the MisManagers for NLV, ya get what ya get. They are saving you money and you are giving concessions. This would NOT HAVE HAPPENED if we would have had skilled leadership in place in the City. That would be a city that continued a capital improvement plans based on an 8 year old study and the market collapsed. Did not deter them from building a new municipal building, a couple million in homeless people landscaping, who knows how many million for the road to nowhere (part is ARRA funding), while cutting city staff, and paying the firefighters SIX FIGURES!!!!.
@TomD1228:
"Summerlin stands..." "There is no rival. Best place to live...bar none."
I assume your're being facetious. You'll recall the nice American family who bought a home in Summerlin to get their kid a decent education. And the kid was gunned down gang style while innocently walking home from school in Summerlin by some ghetto bangers from Las Vegas.
Las Vegas and its environs are a violent, dangerous and disgusting place. Unlike Detroit, Chicago, Los Angeles and similar large cities, you can't escape the deadly violence here in Vegas by moving to a suburb with its own independent police department that keeps the gangs, thugs and other undesirables out of the suburban communities.
To my fellow bloggers;
One possible solution would be for North Las Vegas to contract with LVMPD to handle all their Law Enforcement needs and absorb all NLV police officers into LVMPD. Of course there possibly would need to be some upper management changes in LVMPD before that would be considered, since there is a 70 million dollar deficit in LVMPD budget and it would be like the pot calling the kettle black. Mis-management would be an understatement in not just the financial end but in everything else. Just an old cop reflecting.
Gordon Martines............curre.org
@desertfox
Not at all. If someone was to ask where to live in LasVegas...my response is Summerlin. Certainly you're not suggesting the East side or NLV? Boulder highway area is a dump. Even by Wayne Newton's estate..leave the environs and you're in dumpville. There will be crime in any city, any neighborhood. By and large your best bet is Summerlin. Best maintained, planned community in Las Vegas, and notwithstanding your "gang" incident...safest place in Las Vegas. Everything is new, maintained, the landscaped streets are awesome, parks, gas stations are hidden, Red Rock Canyon, Spring Mountains. I'll put up Summerlin against any other area in Las Vegas...bar none.
Enough of state committees. Change the statute and return the local portions of SUT to the localities that collect them. Sure the "cow counties" lose a few million--but it remains unrealistic to expect "civilization" to be created in a desert without some sort of industry there. Where there are mines, there are local revenues. Where there are farms, there are local revenues. Now, they might want to change the percentage composition and DECREASE THE LSST and offset the CCRT.