Sparks City Council Meeting 6/10/2013 2:00:00 PM

    Monday, June 10, 2013 2:00 PM
    City Council Chambers, Legislative Building, 745 Fourth St, Sparks, NV

Consent Items: 5.2

Title: Consideration and possible adoption of Resolution No. 3239 to augment the FY13 Impact Fee Service Area 1 Fund budget of the City of Sparks to provide budget for remittances of Public Facility Impact fees collected and owed to Red Hawk Land Company as reimbursement for Fire Station #5.
Petitioner/Presenter: Stacie Hemmerling, Budget Administrator/Stacie Hemmerling, Budget Administrator
Recommendation: That Council adopt the resolution as recommended by staff.
Financial Impact: $10,332 increase to FY13 appropriations in Impact Fee Service Area 1 Fund.
Business Impact (Per NRS 237):
A Business Impact Statement is not required. This is a rule but does not impose a direct and significant economic burden on a business, or directly restrict the formation, operation or exemption of a business.
Agenda Item Brief: This item will allow for the appropriation of amounts collected via Public Facility Impact fees that will be remitted to Red Hawk Land Company as reimbursement for Fire Station 5. The procedures and requirements for budget augmentations are outlined in NRS 354.598005 and NAC 354.410. The augmentation request meets those requirements.

Background: In 2005, the City entered into an Impact Fee Reimbursement Agreement with Loeb Enterprises (now doing business as Red Hawk Land Company). In this agreement, the City agreed to reimburse Loeb Enterprises for the cost of constructing Fire Station #5. As permits are issued in the Impact Fee Service Area, Public Facility Impact fees are collected. These fees are remitted quarterly to Red Hawk Land Company per the reimbursement agreement. Finance estimated that $15,000 in Public Facility Impact fees would be collected in FY13, and therefore budgeted $15,000 in expenditures to cover this amount in the FY13 Budget. As of 05/17/2013, $21,600 has been collected. All of this amount, plus any additional amounts collected before 06/30/2013, will need to be remitted to Red Hawk Land Company and posted as an expenditure. In order to prevent a budget violation in the Impact Fee Service Area 1 fund, we must augment the expenditure budget from $15,000 to $25,332 (the max allowed per NRS 354.598005).

Analysis: This is simply a budget clean-up item. The augmented expenditures will be directly offset by increased revenues. The provisions of NRS 354.598005(1) govern the procedures and requirements for augmenting or amending a budget; given that anticipated resources available exceed those estimated. Available resources are defined in NAC 354.410, and include an opening balance which is larger than anticipated in a Special Revenue Fund. Based on FY12 audited financial statements, we have determined that sufficient resources are available for this augmentation. To augment the budget, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentation. NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment A1 with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation. In order to remit all Public Facility Impact Fees collected in FY13 and not violate NRS budgeting requirements, it is necessary to augment the FY13 budget. Resources are available in the Impact Fee Service Area 1 Fund and the Resolution to complete this augmentation is attached. Augmentation of the Fund’s budget will be effective upon delivery of an executed copy of the resolution to the Department of Taxation. Delivery must be before June 30, 2013.

Alternatives: Council could decide not to adopt the resolution to augment the FY13 budget. This could cause expenditures in the fund to exceed appropriations, and would therefore be a violation of NRS 354.626. The violation would be noted in the audited financial statements. Council could decide to adopt the resolution to augment the FY13 budget and provide necessary appropriations for the FY13 Public Facility Impact fee remittances.

Recommended Motion: I move to adopt Resolution No.3239 to augment the FY13 Impact Fee Service Area 1 Fund budget.

Attached Files:
     FY13 fund 1210 bgt augmentation Attachment A1.pdf
     FY13 Resolution - fund 1210 augmentation.pdf
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