Media Release

Thursday, November 19, 2009
For Immediate Release
Communications

Contact: Diana Paul
Telephone: 229-6501

Las Vegas City Council Takes Action To Address 2010 Fiscal Year Declining Revenues
Immediate Actions Needed To Address Declining Consolidated Tax Numbers

At today’s Las Vegas City Council meeting, the council took action on a plan to cut $7.7 million from the current fiscal year budget to deal with a continued decline in consolidated tax revenue and a sagging local economy. The city had anticipated a 5-year budget deficit of $218 million, which is now estimated to be $430 million. The council approved several actions that were recommended by City Manager Betsy Fretwell including:

• Layoffs of 17 fulltime and two part-time employees.
• Freezing all vacant (including public safety) positions until March 2010. Although some limited internal positions may be filled, all outside hiring is frozen, unless approved by the City Manager’s Office. All vacant positions will be pooled with the exception of public safety positions, which will be held vacant in those departmental budgets.
• All construction projects that have general funding and are not under current contract for design or construction are delayed until further notice, not including the proposed new city hall project. The proposed city hall plan does not impact this year’s budget, or the next two fiscal year budgets.
• All expenses for travel and employee development are to be frozen unless it is business related, locally provided and/or required for certifications (grant funded training is an exception).
• The top of the range for the executive pay scale will be dropped 5 percent. This will have long-term savings impacts for the city.

These cuts are expected to save approximately $7,779,242 in the current fiscal year. Further reductions in services will be necessary to prepare for Fiscal Year 2011, which beings July 1, 2011.

During today’s meeting, John Restrepo with Restrepo Consulting Group, presented information that showed that while the nation is recovering economically, Southern Nevada continues to lag behind. For example, average passenger count at McCarran International Airport is down from a year prior, as is the valley’s population growth. 

The foreclosure crisis is hitting the valley especially hard, as 1 in 20 households are in foreclosure in Las Vegas, according to Realty Trac. Restrepo estimated that the unemployment rate in Clark County is around 20 percent, indicating that recovery in Southern Nevada will lag the nation. Restrepo added that housing permits are down, and industrial and office vacancies are up. His information served as a backdrop to examining the city's financial difficulties.

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