NRS Chapter 354 authorizes local governments to establish any number of funds needed to effectively manage the activities of the government.  Creating a new special revenue fund is in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which defines special revenue funds as those funds for which substantially all revenues are restricted or committed for use.

The Promontory, Mesa Meadows, and Triple Crown Landscape Maintenance fiduciary funds were established in 1997 by Resolution Nos. 2457, 2458, and 2459 respectively, to account for activities of the Landscape Maintenance agreements adopted on October 24, 1994.  

The monies deposited into the fund may only be used to maintain the true costs of contracted landscape maintenance, utilities, and administrative costs within the Promontory, Mesa Meadows, and Triple Crown subdivisions.

GASB Statement No. 84, Fiduciary Activities, effective for fiscal year 2021, has redefined fiduciary activities. Due to this change the Promontory, Mesa Meadows, and Triple Crown Landscape Maintenance activities no longer qualify to be reported as fiduciary activities.  To properly report these maintenance agreements, staff advises creating one special revenue fund, the Landscape Maintenance Fund, to consolidate the three landscape maintenance areas.

The existing fund balances in the Promontory, Mesa Meadows, and Triple Crown Landscape Maintenance Funds will be moved to the new fund in the amounts of $1,000, $5,000, and $152,739.41 respectively. The Landscape Maintenance Fund will be comprised of separate accounts within one fund to properly allocate the Promontory, Mesa Meadows, and Triple Crown subdivision transactions in accordance with the original agreements.

Resolution No. 3370 establishes the special revenue fund in accordance with Nevada Revised Statutes.

1. Council could approve Resolution No. 3370 establishing the special revenue Landscape Maintenance Fund, which would allow the City to conform with governmental reporting standards.
2. Council could reject Resolution No. 3370 establishing the special revenue Landscape Maintenance Fund, and future reporting may not be in accordance with governmental reporting standards.

I move to adopt Resolution No. 3370 establishing a special revenue fund called the Landscape Maintenance Fund to account for landscape maintenance fees for the Promontory, Mesa Meadows, and Triple Crown subdivisions.