Attached are the Final Budgets for the City of Sparks Redevelopment Agency, Areas 1 and 2, that will be filed with the Department of Taxation on or before June 1, 2015. 

Redevelopment Area 1 (RA1)

There are some changes to both FY15 Estimates and to FY16 Budget in RA1 since the City Manager Budget Recommendations approved by Council on April 27, 2015:

• FY15 expenditure estimates were increases $30k based on recent information that the costs to clean up the soil contamination discovered on a parcel in Victorian Square could reach $150k.  Only $120k was included in the expenditure estimates in the City Manager Budget Recommendations.
• FY16 expenditure estimates were increased by $150k for the soil cleanup costs.  This amount was duplicated in the FY16 budget to provide budget authority should the costs not get spent or encumbered in FY15.
• FY16 expenditures were increased $50k to provide budget authority for any costs that may occur related to the land sales beyond the $150k cleanup costs.
• FY16 revenues were increased $934k for potential proceeds from the sale of six parcels to Silver Wing for the Fountainhead development
• FY16 revenues were increased $270k for potential proceeds from the sale of two parcels in front of the theater
• The above changes resulted in an FY16 total ending fund balance in RA1 of $4.0M, up $1M from the total ending fund balance of $3.0M presented in the City Manager Budget Recommendations.  $3.0M of the total ending fund balance is reserved for debt service, leaving an unrestricted ending fund balance of $1.0M.

Redevelopment Area 2

There are no changes from the City Manager Recommendations approved by Council on 4/27/15.

Agency members could choose to approve the Final budget, as presented today, for fiscal year 2015-2016.

Agency members could request changes be made and approve the budget with changes.

Agency members could choose not to approve the presented budget and instead adopt by default the Tentative Budget.  Per NRS 354.598, the Redevelopment Agency must adopt a Final budget before June 1, 2015.  If Agency members fail to adopt the Final budget by that date, the Tentative Budget automatically becomes the budget for fiscal year 2015-2016.  If the budget is adopted by default, the Agency board may not reconsider the budget without express approval of the Department of Taxation.

Adjustment to the Final Budget, adopted by Agency members by June 1, 2015, can be made to accommodate events during the fiscal year which may affect revenue and expenditure assumptions used in the formulation of the Final Budget.  If adjustments are necessary due to Legislative actions, an amended budget must be filed within 30 days after the close of the legislative session.

I move to adopt the Final budgets for the Redevelopment Agency of the City of Sparks, Areas 1 and 2, as presented today, for fiscal year 2015-2016.