Sparks Redevelopment Agency Meeting (following the City Council Meeting) 5/29/2018 2:00:00 PMTuesday, May 29, 2018 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV
Business Items: 6.4
A Business Impact Statement is attached.
This item seeks to augment the FY18 budget in the Redevelopment Area 1 Capital Projects Fund by $75,000 to provide appropriations to cover the Redevelopment Areea 1 contribution to the 2018 CDBG Street Improvements - H Street and 16th Street Project.
The procedures and requirements for budget augmentations are outlined in NRS 354.598005 and NAC 354.410. The augmentation request meets those requirements.
City Council will be considering the approval of a bid award to Granite Construction for the H Street and 16th Street Pedestrian Improvements projects today, May 29, 2018. The bid award is for $639,639 to be split as follows:
- $425,000 CDBG Fund
- $214,639 Redevelopment Area 1 Capital Projects Fund
The Redevelopment Area 1 funding for this project was not anticipated when the FY18 budget was filed. It is anticipated there will be sufficient unspent appropriations in this fund to cover $139,639 of the Redevelopment Area 1's $214,639 share, but a budget augmentation for the remaining $75,000 is needed to provide the remaining appropriations.
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 unappropriated ending fund balances of Capital Projects Funds. With the FY17 audit complete, we have determined that sufficient resources are available for this augmentation.
To augment the budgets, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentations. This requirement applies to all fund types. In addition, NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment B1 with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation.
In order to supplement the Community Development Block Grant (CDBG) Fund for the H Street and 16th Street Pedestrian Improvements projects and not violate NRS budgeting requirements, it is necessary to augment the FY18 budget of the Redevelopment Area 1 Capital Projects Fund.
This Fund receives valorem taxes. Per NRS 354.598005(1)(a), before augmenting a fund to which ad valorem taxes are allocated as a source of revenue, we must also publish notice of our intention to act on the resolution in a newspaper of general circulation for at least one publication. No vote may be taken on the resolution until 3 days after the publication of the notice. We have complied with this requirement by publishing the notice in the Reno Gazette Journal within the required timeframe.
Attached is a resolution to augment the City’s Redevelopment Area 1 Capital Projects Fund.
Augmentation of the Funds’ budgets will be effective upon delivery of an executed copy of the resolution to the Department of Taxation. Delivery must be before June 30, 2018.
The Agency could decide not to adopt the resolution to augment the FY18 budget. This could cause expenditures in the Redevelopment Area 1 Capital Projects Fund to exceed appropriations, and would therefore be a violation of NRS 354.626. The violation would be noted in the audited financial statements.
The Agency could decide to adopt the resolution to augment the FY18 budget and provide appropriations of $75,000 in Redevelopment Area 1 Capital Projects Fund.
I move to adopt Resolution No. R-SRA132 to augment the FY18 budget in Redevelopment Area 1 Capital Projects Fund.
FY18 May Augmentation - 3401- Resolution .pdf
FY18 May augmentation - 3401 - B-1.pdf