On September 23, 2019, the City Council approved a Cooperative Local Public Agency Agreeement (AC-5610) with the Nevada Department of Transportation for a grant designated for the City of Sparks Regional Trail Rehabilitation Project that provides a 95% reimbursement of actual construction costs to the City of Sparks up to $285,000.  In October of 2019, Community Services contracted with Stantec Consulting Services Inc. to provide engineering services for trail replacement between Kiley Parkway and Sparks Boulevard in the amount of $29,974.  These engineering costs will not be reimbursed by the grant.  The augmentation request is for $35,000 to provide appropriations should there be additional incidental costs.

The provisions of NRS 354.598005(1) govern the procedures and requirements for augmenting or amending a budget.  Resources available for budget augmentations are defined in NAC 354.410, and include an opening fund balance larger than anticipated.  Based on the results of the FY19 audit, and in compliance with NAC 354.410, City staff has determined that sufficient resources are available in the the Impact Fee Service Area 1 Fund.

NRS 354.598005 requires the governing board adopt a Resolution providing for the budget augmentation.  This requirement applies to all fund types.  In addition, NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment B-1 with this agenda item) be submitted along with the Resolution to the State of Nevada Department of Taxation. 

In order to comply with statutory budgeting requirements, it is legally necessary to augment the FY20 budget.  Attached to this staff report is a Resolution to augment the City’s Impact Fee Service Area 1 Fund.

The FY20 budget augmentation will be effective upon delivery of an executed copy of the Resolution to the Department of Taxation, which must occur before June 30, 2020.

Should this resolution to augment the budget not be adopted, expenditures in the Impact Fee Service Area 1 Fund could exceed appropriations, causing 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.

I move to adopt Resolution No. 3358 to augment the FY20 budget of the Impact Fee Service Area 1 Fund by $35,000 to provide appropriations for un-budgeted expenditures related to design of a regional trail between Kiley Parkway and Sparks Boulevard.