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Sparks City Council Meeting 4/13/2015 2:00:00 PM
Monday, April 13, 2015 2:00 PMCouncil Chambers, Legislative Bldg, 745 4th St., Sparks, NV
General Business: 9.1
A Business Impact Statement is not required because this is not a rule.
Resolution approving the apportionment of surplus amounts remaining in the special fund created for the City of Sparks, Nevada, Marina Area Special Assessment District No. 2
Background:
The Assessment District was formed for the acquisition, improvement, construction and installation of improvements were undertaken pursuant to the Nevada Consolidated Local Improvement Laws, Chapter 271. The Marina Area Special Assessment District No. 2 Bonds were issued on May 1, 2002 to finance public improvements including street, curb, gutter, sidewalk, water, irrigation and sanitary specially benefiting properties within the boundaries of the Marina Area Special Assessment District No. 2 as part of the Local Improvement District. The Marina Area Special Assessment District No. 2 bonds were refunded to obtain a lower interest rate on May 1, 2004. The City of Sparks still maintains the Local Improvement District No. 3 as part of the Local Improvement District that was created pursuant under the Nevada Consolidated Local Improvement Laws, Chapter 271. The City issued Local Improvement District No. 3 Bonds on May 1, 2008, which have a remaining balance of $15,020,000.00 and are scheduled to mature on September 1, 2027.
The resolution before you today is in reference to the Marina Area Special Assessment District No. 2, that was originally issued in 2002 and refunded in 2004, which all outstanding bonds will be fully paid on May 1, 2015. Per NRS 271.428 we are required to apportion the remaining funds to the current parcel owners as of the bond payment date.
Analysis:
NRS 271.428 (1) states when all outstanding bonds of district (assessment) have been paid and any surplus amounts remain, this amount must be refunded to the current parcel owners as of the last debt service payment. Finance staff traced parcels from the original Sparks Marina Assessment Bond 2002 including all split parcels to the attached back-up documentation for those individuals eligible for a refund. The calculation for refund was based on acreage from the initial Bond date and subsequent split-parcels completed by the Washoe County Assessor’s Office. NRS 271.429 also states the first $25,000.00 of any surplus amounts must be deposited into a surplus and deficiency fund along with reasonable costs to the City for time and costs associated with mailing payments to parcel owners. All current parcel owners will be mailed a letter on May 1, 2015 and will have within 60 days to claim such said refund. Any remaining surplus amounts after valid claims payments have been made will be transferred to the surplus and deficiency fund. The surplus and deficiency fund may only be utilized for any remaining deficiency assessments outstanding by the City or until all City assessments are paid in full. Total surplus funds after bond principal and interest payment is $133,105.10. Per NRS 271.429, after accounting for the $25,000.00 requirement to the surplus and deficiency fund and $2,657.10 for postage and check issuance leaves a balance available for apportionment of $105,448.41.
Alternatives:
1. The City Council may approve the apportionment of the Marina Area Special Assessment District No. 2.
2. The City Council may provide alternative direction to staff.
Recommended Motion:
I move to approve Resolution No. 3274 approving the apportionment of surplus amounts remaining in the Marina Area, Special Assessment District No. 2.
Attached Files:
resolution for refunds.pdf Marina SAD Apportionment.pdf
