Economically ailing Nye County flirts with state watch list
CARSON CITY — A state oversight board Tuesday recommended Nye County in Southern Nevada be placed under state monitoring because of its struggling financial situation.
The recommendation by the Committee on Local Government Finance to put the county on a “fiscal watch” is a preliminary step that could allow the county to seek technical assistance from the state to try to turn its tide of red ink.
Deonne Contine, director of the state Department of Taxation, will have final say on whether to officially place the county on the watch list.
“They have several problems,” Marvin Leavitt, chairman of the committee, said of Nye County’s finances.
Those problems were outlined in a memo from the state taxation agency, which said the county was in violation of statutes, including overspending from appropriated amounts and inappropriate use of restricted funds.
Nye County, the memo said, has “serious internal control problems.”
A presentation from county officials showed plummeting property tax revenue since the Great Recession are a big factor in the county’s finances.
Assessed valuation has fallen by $588 million since its peak of $1.9 billion in 2010 to the present. Likewise, revenue from property taxes has dropped $4.4 million during that time. At a 3 percent growth rate, officials project the county won’t reach the 2010 property tax revenue level until 2026.
Nye County’s $31.6 million general fund revenue for fiscal year 2015 marked a $3.8 million drop from six years earlier.
Since the recession, the county has eliminated 82 positions, implemented a hiring freeze and stopped other services such as the animal shelter, senior nutrition programs and closing some health clinics for a savings of $2.2 million, the presentation said.
Still, projections suggest the county faces an ending fund operating shortfall of $2.2 million, roughly 7 percent, in 2017.
North Las Vegas, Nevada’s fourth most populous city, has flirted with insolvency for years. The city averted a state takeover most recently in 2014, after some hard-nosed bargaining with its unions and the fortunate settlement of a large lawsuit.
Even after reducing the city deficit from $152 million to $74 million between 2014 and 2015, the city still struggles. Staffing is tight. The recession ravaged 1,000 positions and it’s unclear if more layoffs will be needed to make ends meet. All departments have been told to prepare for a 7 percent across-the-board cut in 2017. City management has said it is focused on saving jobs but laid off human resources workers last year when it decided it would be more cost-effective to outsource their department.
Review-Journal writer Alexander S. Corey contributed to this report.
Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb
