2013 2:00:00 PM

Monday, January 14, 2013 2:00 PM
Sparks Council Chambers, 745 4th Street, Sparks, NV

General Business: 6.4

Title: Discussion and possible approval of Resolution No. 3231 in support of the consolidated tax(CTX)bill draft

Petitioner/Presenter: Adam Mayberry/Adam Mayberry and Jeff Cronk

Recommendation: Staff recommends approval of the Resolution supporting BDR 247.

Financial Impact: None

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

Agenda Item Brief: This item will allow the City Council to publicly support changes to the CTX formula as proposed in BDR 247 with a Resolution.

Background: The 2011 Legislature passed Assembly Bill 71 directing the Legislative Commission to conduct an interim study concerning the equitable allocation of money distributed from the Local Government Tax Distribution Account (the CTX formula). A number of changes have been made to the formula since its adoption in fiscal year 1999, most significantly in 2001. The current formula has some inequities, particularly for Sparks. Beginning in February, City of Sparks staff (Jeff Cronk and Adam Mayberry) attended the committee’s meetings in Carson City this past year. Additionally, Financial Services Director Jeff Cronk was an active participant in a working group which met numerous times. The working group was made up of nearly 50 local governments in the state who worked collaboratively to reach a consensus on a CTX formula that would bring a level of consistency and fairness for nearly all local governments in Nevada. The proposed changes have been presented to the Mayor and Sparks City Council by Jeremy Aguero of Applied Analysis at a joint meeting held at Washoe County. The CTX Committee was made up of Assemblywoman Marilyn Kirkpatrick (Chair), Senator Mike McGinness, Senator John Lee, Assemblyman John Ellison, and Assemblyman Skip Daly. Assemblywoman Marilyn Kirkpatrick, and now Speaker for the Assembly during the 2013 legislative session, is encouraging each local government to publicly show support for BDR 247. It is the intention of the Speaker to move this legislation quickly through the legislature for the Governor’s signature and enactment prior to the start of Fiscal Year 2014.

Analysis: BDR 247 BDR will stabilize the formula in three primary ways: 1. Allowing the base distribution to grow using the prior year total distribution as the starting point. 2. Adding back in a 2 percent factor to be added to the each local government’s growth rate. 3. Not allowing the assessed value growth rates to drop less than 0 percent.

Alternatives:

Recommended Motion: Staff recommends approval of the Resolution No. 3231 supporting BDR 247.

Attached Files:

Resolution - CTX Bill.pdf

BDR_247.pdf

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