City of Reno
Nevada

Staff Report
11642

Staff Report (For Possible Action): Presentation and potential direction to the City Clerk to record in the minutes, pursuant to NRS 350.089, the written approval of the Executive Director of the Department of Taxation regarding a City of Reno Resolution authorizing issuance of medium-term obligations to fund a portion of the Fire Apparatus Replacement Program in an amount not to exceed $6.5 million. (General Fund)

Information

Department:FinanceSponsors:
Category:Financial AdministrationProjects:Provide Public Safety

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council direct the City Clerk to record Taxation's approval of the City's resolution in the meeting minutes in accordance with NRS 350.089.

 

Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: On July 24, 2019, Council adopted a resolution authorizing a medium-term obligation in an amount up to $6,500,000 to fund a portion of the Fire Apparatus Replacement Program.  The resolution was forwarded to the Department of Taxation for review.  Approval was received October 4, 2019 and is attached to this staff report.

 

Nevada Revised Statutes (NRS) 350.089 requires that written approval of the Executive Director of the Department of Taxation be recorded in the minutes of the City Council.  Staff recommends Council direct the City Clerk to record Taxation’s approval of the City’s resolution in the meeting minutes in accordance with NRS 350.089.

 

Previous Council Action:  On July 24, 2019 Council adopted the resolution authorizing a medium-term obligation in an amount up to $6,500,000 to fund a portion of the Fire Apparatus Replacement Program, directing the officers of the City to forward materials to the Department of Taxation of the State of Nevada.

 

Discussion:  Loans that extend beyond one year, but are less than 10 years, are defined as medium-term obligations and must be approved by the Department of Taxation as outlined in NRS 350.087.  Once approval by the Department of Taxation is received, written approval of the Executive Director of the Department of Taxation must be recorded in the minutes of the City Council.

 

Financial Implications:  There are no financial implications from recording the approval of the Department of Taxation.  It is important to note that no funds were expended related to this project pending approval by the Department of Taxation.

 

Legal Implications:  This action is required per NRS 350.089.

 

Meeting History

Nov 6, 2019 10:00 AM Video Reno City Council & Redevelopment Agency Board Joint Regular

Deborah Lauchner, Director of Finance, presented the staff report and answered questions from Council.

Ms. Lauchner explained for Council Member Brekhus that they provide a complete packet of information with cash flows and financial forecasts to the Department of Taxation. She also confirmed that it was an administrative approval and did not require a board approval.

Council Member Brekhus requested a follow up memo to let her know why it only required an administrative approval because there is a board of local government finance oversight. She also stated this is our last chance to not spend six million dollars over ten years in debt if we can direct staff to find about $800,000 in the budget rather than going in to deficit spending. We could manage the replacement program through a pay go approach.

Mayor Schieve stated she understands Council Member Brekhus’ concerns but the citizens really want the best public safety possible and when it comes to your house burning down, the residents are not going to care about how we structured this.

The Council upheld the staff recommendation with Council Member Brekhus voting nay.

RESULT:APPROVED [5 TO 1]
MOVER:Devon Reese, Councilmember
SECONDER:Bonnie Weber, Councilmember
AYES:Bonnie Weber, Devon Reese, Hillary Schieve, Naomi Duerr, Oscar Delgado
NAYS:Jenny Brekhus
ABSENT:Neoma Jardon