Mayor: Boulder City needs to tighten its belt

By Cassie Tomlin

Friday, Jan. 30, 2009 | midnight

Boulder City needs to focus on saving money this year so it can afford to stay safe and clean, Mayor Roger Tobler told a packed council chambers Thursday during his second State of the City address.

Tobler presented a four-pronged approach to preserving the city's needs and wants: cutting expenses, leasing land, reducing the debt and increasing residents' water and power bills.

For now, he said, money woes haven't changed the things that make Boulder City unique.

"Fortunately, financial difficulties and economic downturns do not change who we are as a community," Tobler said.

But, repeating a theme he struck last year, Tobler said city leaders need to make hard choices and stay vigilant so that remains true.

The city has adjusted this fiscal year's budget by $1.3 million after last year's budget unexpectedly dipped into reserves by $1.8 million.

The cuts came largely from deferring sewer and water projects, leaving city positions vacant, eliminating part-time employees' hours, cutting travel for employees and reducing maintenance at the city's two golf courses.

Tobler said the best way to bring in more revenue is through land leases, and there's no greater opportunity than in the Eldorado Valley's Energy Zone.

The city is preparing to sign new leases for solar power companies that would draw $2.2 million a year and could get an additional $1.8 million annually if existing power companies exercise options.

Tobler said the city has to pay $2.5 million on loans every year, not counting the upcoming $1.5 million annual bill for Southern Nevada Water Authority's third pipeline into Lake Mead.

The city should sell industrial land and land by the Boulder Creek Golf Club to help pay for debt, he said. Voters have approved the former, but not the latter.

The city's electricity and water costs are $1 million more this year than they were in 2007, and the city's Utility Fund is down $1.9 million, the mayor said. More expected increases from NVEnergy, and expired contracts for hydroelectric power will raise Boulder City's rates even higher, but not as high as in Las Vegas and Henderson, he said.

"We will do everything we can to lessen the impacts on our residents, but because of increases in operating costs, rate adjustments will likely be part of the solution," he said. "When rate adjustments are necessary, we are committed to protecting those who are most vulnerable by keeping the subsistence rates for water and power unchanged."

Tobler assured citizens that the city is examining ways to save in every department.

"Like each of you, we are looking at our budget and streamlining wherever we can," he said.

City leaders will continue to push state and federal officials for funding for the $500 billion Boulder City Bypass, which is in early stages of Nevada Department of Transportation development. In 2010, Hoover Dam bypass bridge brings more traffic, congestion, noise and pollution to town. The Boulder City Bypass would redirect some of that traffic south of town.

Tobler commended all city staff and his fellow City Council members, and encouraged residents to help keep Boulder City bright in the dim financial forecast.

"All around us are examples of good people who are giving of their time and talents to make our community better," he said. "I invite you to be part of each solution we must develop to meet the challenges we face. Look around you for opportunities to participate and serve."

Lettie Zimmerman, president of the nonprofit Lend-a-Hand's board of trustees, said she thought the mayor took the right approach.

"His priorities make a whole lot of sense," Zimmerman said. "I'm happy to see he's willing to address those issues."

Richard McHale, a business and development consultant who recently started bi-monthly "BC Facts" community forums for addressing city issues, said he thought the mayor was right in emphasizing resolving the city's debt.

"He's hitting all the right points, but the devil's in the detail," he said.

Cassie Tomlin can be reached at 948-2073 or [email protected].