File #: 22-1496   
Status: Agenda Ready
File created: 10/6/2022 In control: Clark County Board of Commissioners
On agenda: 10/18/2022 Final action:
Title: Approve, adopt and authorize the Chair to sign a Resolution making a finding that no increase in ad valorem taxes is anticipated for the payment of the "Clark County, Nevada, General Obligation (Limited Tax) Fire Station and Training Center Bonds (Additionally Secured by Pledged Revenues), Series 2023", in the maximum principal amount of $50,000,000 for the term thereof and requesting the Debt Management Commission to convene to approve the bonds and the finding. (For possible action)
Attachments: 1. Staff Report, 2. Fire Bonds DMC Notice Resolution, 3. Fire Bonds Revenue Study

CLARK COUNTY BOARD OF COMMISSIONERS

AGENDA ITEM

 

Petitioner:

Jessica L. Colvin, Chief Financial Officer

Recommendation: 

title

Approve, adopt and authorize the Chair to sign a Resolution making a finding that no increase in ad valorem taxes is anticipated for the payment of the "Clark County, Nevada, General Obligation (Limited Tax) Fire Station and Training Center Bonds (Additionally Secured by Pledged Revenues), Series 2023", in the maximum principal amount of $50,000,000 for the term thereof and requesting the Debt Management Commission to convene to approve the bonds and the finding.  (For possible action)

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FISCAL IMPACT:

Fund #:

N/A

Fund Name:

N/A

Fund Center:

N/A

Funded PGM/Grant:

N/A

Amount:

N/A

Description:

N/A

Additional Comments:

The debt service on the bonds will be repaid by Consolidated Tax.  Per NRS the County is authorized to pledge up to 15% of the Local Government Tax Distribution Fund allocable to the County.  The Local Government Tax Distribution Fund consists of local government revenues from six sources: Supplemental City/County Relief Tax (“SCCRT”), Basic City/County Relief Tax (“BCCRT”), Cigarette Tax, Liquor Tax, Governmental Services Tax (“GST”), and Real Property Transfer Tax (“RPTT”).  The law allows for up to 15% of the combination of these six revenues (the “Consolidated Tax”) to be pledged as security for debt.

 

BACKGROUND: 

The proceeds will be used to finance the cost of acquiring, improving and equipping building projects as defined in NRS 244A.019, including but not limited to a fire station and fire training center for use by Clark County.

In order to initiate the process of securing the long-term debt financing, the Nevada Revised Statutes requires that the Board request the Debt Management Commission to convene and consider the request to issue general obligation bonds. The resolution also includes a “reimbursement resolution” component, which will allow the County to reimburse itself, from bond proceeds, for expenditures made related to this financing prior to the issuance of the bonds.  Eligible expenditures are expenditures that occur 60 days prior or any time after the adoption of the reimbursement resolution.