Sparks City Council Meeting 7/9/2012 2:00:00 PM

    Monday, July 9, 2012 2:00 PM
    City Council Chambers, Legislative Building, 745 Fourth St, Sparks, NV

General Business: 6.3

Title: Consideration and possible adoption of resolution number 3218, directing the County Treasurer to give notice of the sale of properties subject to the lien of a delinquent assessment; ratifying all actions previously taken; and providing other matters properly relating thereto.
Petitioner/Presenter: Debi Hunt/Debi Hunt
Recommendation: That Council adopts the resolution directing the County Treasurer to give notice of the sale of properties that are subject to the lien of a delinquent assessment
Financial Impact: Potential collection of delinquent assessments.
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 County Treasurer to proceed with the notice of the sale of properties that are subject to a lien due to delinquent assessment, the City Council must approve the attached resolution.


Background: The City of Sparks authorized the creation of the Marina Special Assessment District #2 for the purpose of acquiring improvements within the District. Marina SAD Bonds were sold to fund those improvements on May 29, 2002. The portion of the improvement costs that were funded with debt represent costs that are to be collected via a special assessment against the benefited lots, tracts and parcels of land within the District. The assessed property owners were included in the assessment roll provided to the County Treasurer for billing and collection on behalf of the City in accordance with NRS Chapter 271. One property included on the assessment roll is delinquent and is subject to sale by the County Treasurer. At the time of writing, this property remains delinquent and is subject to a lien sale pursuant to NRS 271.540 to 271.630. The County Treasurer may receive payment on this property prior to the sale. If that occurs, the County may withdraw the property from sale.

Analysis: If Council does not approved the resolution, the bondholders may file a claim against the City, and the City’s bond rating may be negatively impacted. Per NRS 271.630, if any assessment is not promptly collected or enforced, then any bondholder may file and prosecute a foreclosure action against the property owner in the name of the City. In addition, any bondholder may file against the City to protect their rights. If the City does not collect the assessments and is forced to make debt payments from required reserves, there may be a negative impact to the City’s bond rating.

Alternatives: The City Council may adopt the resolution that will direct the County Treasurer to proceed with the notice of sale of the delinquent property as provided in NRS 271.545 and sell the delinquent property pursuant to NRS 271.540 to NRS 271.630. The City Council may choose not to adopt the resolution directing the County Treasure to proceed with the notice of sale of property.

Recommended Motion: I move to adopt resolution number 3218, directing the County Treasurer to give notice of the sale of properties subject to the lien of a delinquent assessment; ratifying all actions previously taken; and providing other matters properly relating thereto.

Attached Files:
     RESOLUTION 3218- 07-23-12.doc
     RESOLUTION 3218- 07-23-12.pdf
     RESOLUTION 3218- 07-23-12.pdf
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