The Redevelopment Agency approved a bid award to Granite Construction for the I Street from Rock to 15th Street Pedestrian Improvements Project on May 28, 2019.  The bid award is for $421,444 to be split as follows:

• $279,409 CDBG Fund
• $142,035 Redevelopment Area 1 Capital Projects Fund

The Redevelopment Area 1 funding for this project was not anticipated when the FY19 budget was filed.  A budget augmentation for the $142,035 is needed to provide appropriations to cover this un-budgeted expenditure and avoid a budget violation.

Since resources available exceed those that were estimated, the provisions of NRS 354.598005(1) govern the procedures and requirements for augmenting or amending a budget.  Available resources are defined in NAC 354.410, and include an opening fund balance larger than anticipated.  Based on results of the FY18 audit, in compliance with NAC 354.410, City staff has determined that sufficient resources are available for this augmentation.

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 I Street from Rock to 15th Street Pedestrian Improvements Project and comply with statutory budgeting requirements, it is necessary to augment the FY19 budget of the Redevelopment Area 1 Capital Projects Fund.

The Redevelopment Area 1 Capital Projects Fund receives ad valorem taxes.  Per NRS 354.598005(1)(a), before augmenting a fund to which ad valorem taxes are allocated as a source of revenue, a notice of intent to act on the resolution must be published 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.  The Agency is in compliance with these requirements by publishing the notice in the Reno Gazette Journal within the required timeframe.

Attached to this staff report is a Resolution to augment the City’s Redevelopment Area 1 Capital Projects Fund.

The FY19 augmentation will be effective upon delivery of an executed copy of the resolution to the Department of Taxation, which must occur before June 30, 2019.

1.  The Agency may reject 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, and a written explanation of the violation would need to be submitted to the Nevada Department of Taxation which ultimately may refer the violation to the Nevada Attorney General for prosecutorial consideration.

2.  The Agency may reject the recommendation of City staff and provide further direction to the Agency's Chief Administrative Officer.

I move to adopt Resolution No. SRA-134 to augment the FY19 budget in Redevelopment Area 1 Capital Projects Fund by $142,035 required for the Redevelopment Area 1 contribution to the 2019 CDBG Street Improvements - I Street from Rock to 15th Street Pedestrian Improvements Project.