2021 2:00:00 PM

Meeting Link: https://zoom.us/s/91208736348
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 912 0873 6348

General Business: 9.8

Title: Consideration, discussion, and possible adoption of Resolution No. 3372 authorizing expansion of the purpose, sources, and uses of the Road Fund, a capital projects fund of the City of Sparks.

Petitioner/Presenter: Jeff Cronk CPA, Chief Financial Officer/Debi Kinder, Accounting Manager

Recommendation: Staff recommends Council adopt the resolution to expand the purpose, sources, and uses of the Road Fund.

Financial Impact: None

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

Agenda Item Brief:

In order for the City to comply with revised accounting standards, it is advisable to expand the purpose, sources, and uses of the existing Road Fund, which will allow for activities from the RTC Road Impact Fee Fund to be reported within the Road Fund.

Background:

NRS Chapter 354 authorizes local governments to establish any number of funds needed to effectively manage the activities of the government.

The Road Fund was established in 1997 by Resolution No. 2487. The object or purpose of the fund is to account for the resources used for financing the maintenance, repair, reconstruction and construction of roads and streets, including related expenditures as allowed by NRS 365.560, which governs the levy, allocation, and authorized uses of fuel taxes received by the City.

The RTC Road Impact Fund was established in 1996 by Resolution No. 2380, which established a regional road impact fee payable for new development within various districts of the Truckee Meadows region. The City of Sparks collects fees on behalf of the Regional Transportation Commission (RTC) and transmits such fees quarterly to RTC. RTC uses these and other funds to develop and construct roads and then dedicates some of those roads to the City of Sparks.

Analysis:

Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, effective for fiscal year 2021, has redefined fiduciary activities. Due to this change, RTC Road Impact Fund activities no longer qualify to be reported as fiduciary activities. In order to properly report RTC Road Impact Fund activities, staff advises expanding the purpose, sources and uses of the existing Road Fund. This will allow monies collected pursuant to Sparks Municipal Code Chapter 12.44, Regional Road Impact Fee, to be held in the Road Fund until transferred to the RTC. The monies related to the RTC Road Impact Fees will not increase the available resources within the Road Fund.

Resolution No. 3372 expands the purpose, sources, and uses of the Road Fund in accordance with Nevada law.

Alternatives:

Council could approve Resolution No. 3372 to expand the purpose, sources and uses of the Road Fund, which would allow staff to conform with governmental reporting standards.
Council could reject Resolution No. 3372 expanding the purpose, sources and uses of the Road Fund, and future reporting may not be in accordance with governmental reporting standards.

Recommended Motion:

I move to adopt Resolution No. 3372 to authorize expanding the purpose, sources, and uses of the Road Fund, a capital projects fund of the City of Sparks.

Attached Files:

Resolution to Change Purpose of Fund 1401.pdf

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