Certain capital projects were approved in prior year Capital Improvement Plans (CIP), but were not completed in FY18, and the budget authority lapsed.  The FY19 budget will be augmented to re-appropriate those funds.  See Attachment A for a list of the specific projects.

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 FY18 audit complete, we have determined that sufficient resources are available for this augmentation.

To augment the budget, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentation.  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 complete thise previously approved CIP project and not violate NRS budgeting requirements, it is necessary to augment the FY19 budget.  Resources are available in the appropriate 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, 2019.

The Agency could decide not to adopt the resolution to augment the FY19 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 FY19 budget and provide appropriations of $80,000 in Redevelopment Area 1 Capital Projects Fund.

I move to adopt Resolution SRA-133 to augment the FY19 budget in Redevelopment Area 1 Capital Projects Fund by $80,000 to provide appropriations for a capital project approved, but not completed in the prior year.