EDITORIAL: North Las Vegas still a long way from balanced budget

If North Las Vegas taxpayers needed additional confirmation that their government is in financial crisis, City Hall provided it last week. The city laid off five department heads.

The city’s resulting reorganization was at once dramatic and unimpressive. Although the valley’s local governments have eliminated hundreds of jobs over the years, no government had so aggressively cut back administration all at once. At the same time, the pink slips save North Las Vegas just $665,000 in annual salaries and benefits, a drop in the bucket for a bailed-out municipality that faces annual $18 million to $20 million budget deficits well into the future.

The layoffs of Community Services Director Frank Fiori, Parks and Recreation Director Mike Henley, Utilities Director Reed Scheppmann, Administrative Services Director Al Noyola and Assistant Administrative Services Director Skip Grey underscore the city’s lack of financial flexibility. A judge recently ruled North Las Vegas couldn’t suspend pay raises for unionized public safety workers under an emergency declaration, which puts the city in an even deeper hole. What’s left of the city’s workforce is locked in at an unsustainable pay scale, and reserve accounts are nearly empty. A potential state takeover looms.

“Obviously we’re hoping that laying off 180 employees at an average of $110,000 a year isn’t the only way to” balance the budget, City Finance Director Darren Adair said.

North Las Vegas and Las Vegas have been negotiating potential shared services for months. In fact, as reported by the Review-Journal’s James DeHaven, officials with both cities were scheduled to meet Thursday, the day the layoffs were announced. Those talks were canceled.

Sharing services makes more sense than ever for North Las Vegas — especially if doing so helps the government eliminate additional positions. Yet leaders from both cities insist that job cuts are not a goal of sharing up to a dozen services. A North Las Vegas spokesman said last week’s layoffs had nothing to do with shared services. But what’s the point if the exercise doesn’t help North Las Vegas cut expenses in a big way?

In reality, North Las Vegas should be pursuing full consolidation — if it can find a willing partner. Once a rigorous examination of the city’s finances is complete, valley residents will have a sense of just how much help North Las Vegas needs.

If nothing else, last week’s layoffs signal that the City Council and the city’s new leadership team are getting serious about addressing expenses. That’s good, because beleaguered North Las Vegas can’t afford its government. That has to change — fast.