2012 2:00:00 PM

Monday, February 13, 2012 2:00 PM
Sparks Council Chambers

General Business: 6.4

Title: Consideration and discussion of approving a letter addressed to the Legislative Commission's Subcommittee to study the allocation of money distributed from the local government tax distribution account

Petitioner/Presenter: City Manager Shaun Carey/Financial Services Director Jeff Conk and Community Relations Manager Adam Mayberry

Recommendation: approval of the letter

Financial Impact: 0

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: Approval of letter as requested by the Legislative Commission's Subcommittee to study the allocation of money distributed from the local government tax distribution account on City of Sparks issues and suggested CTAX distribution proposals.

Background: Assembly Bill 71 enacted during the 2011 session of the Nevada Legislature created the subcommittee to study the allocation of money distributed from the local government tax distribution account (hereafter referred to as the CTAX Committee). The Committee is made up of Assemblywoman Marilyn Kirkpatrick (Chair), Senator Mike McGinness, Senator John Lee, Assemblyman John Ellison, and Assemblyman Skip Daly. During the current interim session, the committee has been tasked with the following (Source: AB 71): A. Review the structural components of the formula used for the allocation of money distributed from the Local Government Tax Distribution Account to local governments, special districts, and enterprise districts from the inception of the formula to the present day. B. Examine whether the formula results in an equitable allocation among all those governmental entities, including, without limitation, any local library districts which do not currently receive such an allocation, and if not, consider possible alternative methodologies to achieve a more equitable allocation among all those governmental entities. C. Any recommendations for legislation proposed by the subcommittee must be approved by a majority of the members of the Senate and a majority of the members of the Assembly appointed to the subcommittee. D. The Legislative Commission shall submit a report of the results of the study and any recommendations for legislation to the 77th Session of the Nevada Legislature.

Analysis: The CTAX Committee met for the first time on February 1. City of Sparks staff Jeff Cronk and Adam Mayberry attended the Las Vegas hearing via teleconference from Carson City. The thrust of the February 1 meeting focused on “A” (as noted above). It is expected that the committee will hold a total of six meetings during the interim session. City staff will be engaged and participate in this process to represent the interest of Sparks. Chairwoman Kirkpatrick requested from each local government a letter endorsed by the governing bodies outlining their respective issues with the current CTAX distribution no later than February 24, 2012. Staff has prepared a letter for City Council approval that addresses the City’s fundamental issues with the current CTAX formula, and outlining possible proposals to modify the CTAX distribution.

Alternatives: The City Council can approve the letter addressed to the CTAX Subcommitee The City Council cannot approve the letter addressed to the CTAX Subcommittee The City Council can make edits to the letter addressed to the CTAX Subcommittee

Recommended Motion: I move to approve the letter outling Sparks issues and considerations to suggested modifications to the Legislative Commission's Subcommittee to study the allocation of money distributed from the local government tax distribution account.

Attached Files:

Kirkpatrick draft letter ai 6-2.pdf

CTAX Formula Change Example_Sparks.pdf

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