Wednesday, May 12, 2004 | 9:41 a.m.
Banking on signs the economy is improving, the Las Vegas City Council unanimously approved Tuesday a plan to overcome $6.6 million in capital project shortfalls by utilizing additional tax money that came in unexpectedly and by tapping into the closing fund balance for the current fiscal year.
By approving $62.7 million for major parks and recreation projects, city facilities and roads, the council rejected alternatives that included delaying or scaling back projects, waiting for more Southern Nevada Public Lands Management Act money to come in or issuing additional park bonds that would be repaid with general fund money.
The vote on the final budget is expected following a special City Council budget hearing Tuesday.
City Finance Director Mark Vincent said the shortfall in funding is being overcome by an additional $1.5 million in unexpectedly high February consolidated tax revenue -- money collected by the state from counties and redistributed -- and another $5 million from a mid-year budget augmentation that could occur as early as December.
Vincent said that money will come from the closing fund balance from fiscal 2004 ending June 30.
The final figures from April through June this year are expected to yield enough revenue to cover the capital funding shortfall, he said.
Councilman Gary Reese is confident the money will be available because the city had tightened its belt and because the economy is showing signs of making a strong comeback.
"We have been very frugal with our spending," Reese said after Tuesday's special hearing on the capital funding shortfall. "I have talked to labor officials and they see the economy as being solid. I'm comfortable the money will be there."
Vincent said the city staff's options were limited given that the council did not want to scale down on planned priority projects -- especially the $26 million Centennial Hills Leisure Center Complex at Buffalo Road and Elkhorn Road -- or issue $5.3 million in more park bonds that would have to be paid back at a rate of $700,000 a year from the general fund.
To fund the Centennial Hills center, the most expensive top-priority project on the list that included 22 projects, the city has to issue $20 million in parks bonds that will be repaid with the annual Las Vegas Convention and Visitors Authority 10 percent room tax rebate to the city.
To reach the point where it currently stands, the city had to trim a wish list that called for 98 requested jobs at $7.2 million, $22.1 million in non-labor costs and $106.2 million in capital projects to funding 54 jobs at $3.2 million, $12.1 million in non-labor costs and the $62.7 million in capital projects.
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