Presentation to Nevada Assembly Committee on Government Affairs February 17, 2015.

Presentation to Nevada Assembly Committee on Government Affairs

February 17, 2015

ABOUT FERNLEY

About Fernley

• Population: 19,368 (2010 census)

• Projected population by 2021: 30,000

• Families represent 75.1% of population

(higher than average)

• Median age: 34.8 (lower than average)

• Occupies 160 square miles

About Fernley

• Formally incorporated in 2001

• At time of incorporation

population was 6,800

• Population nearly tripled due to

development in Fernley and TRIC,

affordable housing boom

About Fernley

• City government services include: Public Works and Utility

(including streets, water, wastewater), Community

Development (planning, building and code enforcement,

economic development), Parks and Recreation, City Attorney,

City Clerk, Animal Control, Municipal Court

• Lyon County Sheriff provides law enforcement

• North Lyon County Fire District provides fire protection

THE NEVADA CONSOLIDATED TAX (CTX) ISSUE

CTX Issue

• CTX implemented in 1997 to distribute six different taxes

to municipalities

• First tier: allocated to 17 counties

• Second tier: each county’s distribution to city/local

governments and special districts according to Base and

Excess Distribution formulas

CTX Issue

• Each entity had base allocation established in 1997

• Problem: City of Fernley was not incorporated in 1997

• Dept. of Taxation had to determine the base allocation for

Fernley after incorporation since Fernley is the only city

incorporated after 1997

• The base allocation for Fernley is inequitable compared

to other Nevada cities

THE CTX INEQUITY

The CTX Inequity

The CTX base allocation determined after its incorporation is

inequitable compared to other cities and inadequate for our

current population, much less the projected future growth given

Nevada’s economic development successes.

The CTX Inequity

City 2013 Pop% Growth Since

20012013 CTX Total

% Increase Since 2001

2013 CTX Allocation

2013-14 Municipal

Budget

Fernley 18,987 99.25% $133,050.30 33.01% $7.01 per citizen $8,636,493

Mesquite 17,477 46.37% $7,336,084.71 40.63%$419.76 per

citizen$42,066,527

Elko 20,958 22.61% $13,521,334.12 109.38%$645.16 per

citizen$23,941.346

The CTX Inequity• Why should the value of a Fernley man,

woman or child be only $7 compared

to other cities’ citizens

• The base calculation formula is

outdated and inadequate, not

appropriate for a “new” city with

dramatic growth and needs

• It prevents Fernley City government

from providing necessary services,

now and in future

WHAT WE HAVE TRIED TO DO TO RESOLVE THIS

What We Have Tried

• Tax Department changes, relief

• Relief within our county for CTX funding

• Legislative relief

• Relief from the courts

THE PRESENT IS CHALLENGING, THE FUTURE IS FRIGHTENING

The Present is Challenging

• Budget

• Staffing

• Roads

• Parks

• Other Infrastructure

The Future is Frightening

• The good news for northern

Nevada: Economic development

is very successful (TRIC: Tesla,

Switch, etc.)

• The bad news for Fernley: There

are no resources or infrastructure

to support new industry

or residents

The Future is Frightening

Two stories with foreboding about what the future holds.

The Future is Frightening

Fernley can not support the

new growth projected to flood

into Northern Nevada. We have

no infrastructure or resources

to support our current

industrial and residential base,

much less any new expansion.

What We Are Requesting

• An understanding of the seriousness of the situation and its

impact on economic development for Nevada

• More equitable treatment of Fernley citizens relative to other

Nevada cities

• A one-time adjustment to the base allocation to allow us to

serve our businesses and residents

THANK YOU.