Return to News or Views
Return to Main Article
Washoe County Bond Bank
(Second Bite at the Apple)
Updated December 9, 2011 The powers that be added the following language (for 12/13/2011) to one of the recitals in their revised ordinance, which if it had the force of law, could later be deleted or otherwise modified. Although, Recitals are intended to show intent and to explain the purpose of the Ordinance, recitals do not contain rights or obligations, to have legal authority they must be referred to in the actual ordnance as true, correct and binding. (clever)
|
On November 8, 2011 – The Board of County Commissioners (BCC) at the request of Commissioner Larkin decided to take a second bite at setting Washoe County up as a “Bond Bank” for other Municipalities, after the first attempt failed.
On May 10, 2011 when a Bond Bank Ordinance was first brought to the BCC, it was crafted to fund two items –
- The necessary bonds for the merger of Washoe County’s Dept of Water Resources (DWR) with the Truckee Meadows Water Authority (TMWA)
- The bonds necessary to finance the $500? Million Truckee River Flood Project.
Nov. 8, 2011) this new Ordinance contains language that restricts this Bond Bank to item 1 above, claims John Sherman Finance Director. The language is not ironclad. Even if it were, the Finance Director can bring an amendment to the BCC with clarifying language, removing all restrictions.
Expectations are the Bond Bank would be used to fund the Flood Project. See Bond Bank video belw
Under current law the county is limited in its amount of debt. It is limited to 10 percent of the total assessed valuation of the taxable property of the County. Under the Bond Bank ordinance the county would be permitted another 15 percent for a grand total of 25 percent. As general obligation bonds, they are ultimately guaranteed by the tax payer,
Excerpted Language from Bond Bank Ordinance “Finally, the State bond bank law limits the total amount of debt by the county Bond Bank to an amount not exceeding 15 percent of the total assessed valuation of the taxable property of the County. For example the County Bond Bank debt limit would allow for 15% of the FY 10/11 13,976,020,061 Assessed Value or $2,096,403,009 in total debt to be issued. This is separate from the County's current general obligation debt limit of 10% of total assessed value. Under the current 10% limit the FY 10/11 Assessed Value of 13,976,020,061 equals a debt limit of $1,397,602,006, then subtracting the outstanding general obligation indebtedness of $309,522,589 provides for additional debt of $1,088,079,417.” |
Commissioner Bonnie Weber asked a number of questions and summed up stating "this is risky business." Commissioner Kitty Jung asked; what if TMWA (or other entity's) defaulted? stating she could not support the ordinance.
County Manger Katy Simmon stated that she “wanted to defend John Sherman and he is not proposing this (Bond Bank) for his own aggrandizement.”
Commissioner Bob Larkin referred to his opposition with a “Smoke Screen thrown up against him.”
There was confusion over the legal status of the Truckee River Flood Management Authority regarding how it may relate to the Bond Bank Ordinance.
The Bond Bank Ordinance defines Water Authority as --
Excerpted Language from Bond Bank Ordinance “Water Authority" means any entity that is created by cooperative agreement pursuant to chapter 277 of NRS, the functions of which include the Acquisition, construction, Improvement, operation and maintenance of a water system. |
On March 11, 2011, the Truckee River Flood Management Authority (FMA) became its own autonomous agency created by an inter-local agreement, between the cities of Reno, Sparks, Washoe County allowing the agency to own it’s own land, enter into contracts, design and build its projects and to establish and charge fees.
Considering that “Water Authority” is not preceded with a qualifying adjective, such as municipal, waste, storm, or flood therefore the phrase becomes inclusive of all. Under the language of Bond Bank Ordinance, the Truckee River Flood Management Authority would qualify without any future changes. It would need a simple change to include others.
After considerable discussion despite valiant efforts by Commissioners Bonnie Weber and Kitty Jung the ordinance was introduced and first reading was formally completed.
Second reading is scheduled for the next meeting December 13, 2011.
First Reading May 10, 2011 - 55 min |
||
First Reading Nov, 8, 2011 - 63 min |
||
Truckee River Flood Management Authority Bond Bank Discussion Nov, 17, 2011 - - One (1) - min |
||
Return to News or Views
Return to Main Article
Return to Top
# # #