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, 2016. 

Redevelopment Area 1 (RA1)

There are some changes to both FY16 Estimates and to FY17 Budget in RA1 since the City Manager Budget Recommendations approved by Council on April 25, 2016:

• FY16 expenditure estimates were increases $100k based on recent information that there are 3 old heating oil tanks on parcels in Victorian Square that will need to be removed.
• FY17 budgeted expenditures were increased by $150k.  $100K is included as a contingency for any additional liabilities and $50K was added for any land sale costs that may occur in FY17. 
• The above changes resulted in an FY17 total ending fund balance in RA1 of $4.10M, down $250K from the total ending fund balance of $4.35M presented in the City Manager Budget Recommendations.  $3.2M of the total ending fund balance is reserved for debt service, leaving an unrestricted ending fund balance of $871K.

Redevelopment Area 2

There are no changes from the City Manager Recommendations approved by Council on 4/25/16.

Agency members could choose to approve the Final budget, as presented today, for fiscal year 2016-2017.

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, 2016.  If Agency members fail to adopt the Final budget by that date, the Tentative Budget automatically becomes the budget for fiscal year 2016-2017.  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, 2016, 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 2016-2017.