2020 2:00:00 PM

Monday, March 23, 2020 2:00 PM
Council Chambers, Legislative Bldg, 745 4th Street, Sparks, NV

Business Items: 6.2

Title: Consideration, discussion and possible adoption of Resolution No. R-SRA-135 to augment the FY20 budget of the Redevelopment Area 1 Capital Projects Fund by $1,189,163 to provide appropriations for several capital projects not included in the FY20 Capital Improvement Plan (CIP).

Petitioner/Presenter: Stacie Hemmerling, Budget Manager/Stacie Hemmerling, Budget Manager

Recommendation: Staff recommends Council adopt the Resolution.

Financial Impact: $1,189,163 increase to FY20 appropriations in the Redevelopment Area 1 Capital Projects Fund

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

Agenda Item Brief:

City staff recommends approval of a FY20 budget augmentation for the Redevelopment Area 1 Capital Projects Fund in the amount of $1,189,163. The augmentation is necessary to provide FY20 approriations for the following capital improvement projects not included in the FY20 Capital Improvement Plan (CIP), but now anticipated in FY20:

Downtown Barricades Phase 1 - $600,000
Vic Square Garage Parking Stall Level Counting Equip and Software - $119,493
Avenue of the Oaks Realignment Design - $90,900
Re-name C St. to Ave of the Oaks (Pyramid to Victorian Plaza Circle) - $8,770
Plaza Concept - $50,000
CDBG Pedestrian Improvements D St. (Rock to 15th) & 16th St. (Prater to D) - $300,000
Victorian Square Garage Mural - $20,000

Resources are available to satisfy these expenditures in the Redevelopment Area 1 Capital Projects Fund. The procedures and requirements for budget augmentations are outlined in NRS 354.598005 and NAC 354.410. The augmentation request meets those requirements.

Background:

On April 24, 2019 the City Council approved the FY20 - FY24 Capital Improvement Plan (CIP). There were no projets listed for Redevelopment Agency Area 1, and therefore no appropriations exist in the FY20 budget for capital improvements. Several projects have been subsequently planned for the current year, requiring a budget augmentation to provide appropriations.

Analysis:

NRS 354.598005(1) governs the procedures and requirements for augmenting or amending a budget, given there are available resources. Available resources are defined in NAC 354.410, and include an unappropriated ending fund balance in a Capital Projects Fund. Based on results of the FY19 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 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 complete several capital improvements not included in the FY20 CIP and comply with statutory budgeting requirements, it is necessary to augment the FY20 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 having published 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 FY20 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 Redevelopment Area 1 Capital Projects Fund to 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.

Alternatives:

1. Council may adopt the Resolution to augment the FY20 budget and provide approriations of $1,189,163 in the Redevelopment Area 1 Capital Projects Fund.

2. Council may reject the Resolution and provide further direction to the City Manager.

Recommended Motion:

I move to adopt Resolution No. R-SRA-135 to augment the FY20 budget of the Redevelopment Area 1 Capital Projects Fund by $1,189,163 to provide FY20 appropriations for the capital improvements described in this report.

Attached Files:

FY20 Mar 3401 aug - Resolution.pdf

FY20 Mar 3401 aug - B-1.pdf

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