MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      March 29, 1993

 

 

 

The Assembly Committee on Taxation was called to order by Chairman Robert E. Price at 5:05 p.m., March 29, 1993, in Room 331 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Robert E. Price, Chairman

      Mrs. Myrna T. Williams, Vice Chairman

      Mr. Rick C. Bennett

      Mr. Ken L. Haller

      Mrs. Joan A. Lambert

      Mr. John W. Marvel

      Mr. Roy Neighbors

      Mr. John B. Regan

      Mr. Michael A. Schneider

      Mr. Larry L. Spitler

 

 

COMMITTEE MEMBERS ABSENT:

 

      Mr. Peter G. Ernaut  (Excused)

 

GUEST LEGISLATORS PRESENT:

 

      None

 

STAFF MEMBERS PRESENT:

 

      Ted Zuend, Deputy Fiscal Analyst, Legislative Counsel Bureau

 

OTHERS PRESENT:

 

      Glenn Trowbridge, Director, Clark County Department of Parks and Recreation

      James L. Ley, Assistant County Manager, Clark County

      Don Schlesinger, Vice Chairman, Clark County Board of County Commissioners

 

 

Chairman Price affirmed the meeting was a special meeting held for the purpose of hearing SB 307.  Due to requirements for putting the matter on the Clark County ballot, time was of the essence.  The bill explanation is attached as Exhibit C.  An explanatory memorandum from the Fiscal Division is attached as Exhibit D.  Chairman Price called the representatives of Clark County to testify.

 

SENATE BILL 307 -  Provides for creation and financing of park     districts by counties.  (BDR 20-601)

 

Glenn Trowbridge, Director, Clark County Department of Parks and Recreation was first to speak in support of the bill.  His written testimony is attached as Exhibit E.  As he concluded his prepared remarks, Chairman Price asked him if he knew what the standard facilities to population ratio was for rodeo grounds.  Mr. Trowbridge stated he did not know specifically, but there had been 240 events held at the Horseman's Park over the 52 weekends last year.

 

James Ley, Assistant Clark County Manager, also responded to a question from Chairman Price.  He confirmed Clark County was required to and did have a General Obligation Bond Commission.  The bond commission was appointed by the county commissioners and made up of representatives from the local governing bodies within Clark County.

 

Answering a question posed by Mr. Regan, Mr. Trowbridge stated there was no provision in the bill for publicizing the bond issue or doing any kind of a public relations campaign for its passage.  He explained public funds could not be used for such purposes.  A committee known as Families for Parks had collected privately donated monies and would be responsible for the promotional activities connected with this issue.

 

Additionally, Mr. Trowbridge responded to Mr. Regan's second question.  He stated most of the recreational programs were geared toward daytime activities.  However, the department had been in the past and would in the future be open to petitions from groups for special use to accommodate those who wanted hours adjusted to meet the needs of a 24-hour community.  He added most of the programs of the department were on a user fee or pay-as-you-go basis.  Therefore, any fee for irregularly scheduled programs would have to be established subject to those criteria.

 

Mr. Ley explained to Mr. Marvel the total cost, which included operation and maintenance costs for the overall 5-year parks master plan, was $142 million funded from a variety of sources.  Those sources included grants, private donations, residential construction tax, Las Vegas Visitors and Convention Authority, and some monies from the general fund.  But, the bulk of the funding would come from the park bond issue.  On further questioning, Mr. Ley submitted a draft of twenty-year projection entitled Alternative Parks and Recreation Capital Development Projects which is attached as Exhibit F.  He explained they were anticipating a $77.345 million bond issue which would be used to support the construction of approximately $79.6 million in parks projects as well as an operating and maintenance rate of $.014 for 1994 which increased over time to a peak in 1997-98 of $.1449.  In the peak year, 1997-98, such a rate would equate to an assessment on a $100,000 home of about $52.45 per year.

 

Mr. Marvel asked if Clark County had projected what passage of all the measures currently before the legislature would do to the county's overall tax rate.  Mr. Ley stated the Metro bill and this bill, if passed in combination, would not cause the county to too closely approach the cap.  He estimated Clark's current tax rate at $3.24.

 

Don Schlesinger, Vice Chairman, Clark County Board of County Commissioners, thanked the committee for having expedited the hearing on this bill.  In his opening remarks he underscored the inadequacies of Clark County's park facilities.  He stated it was a compelling problem within the community.  He pointed out to Chairman Price and Mr. Regan SB 307 would provide a major northeast regional park with softball fields for boys and girls and a 10-acre soccer area and a senior center expansion.  It would also benefit Assemblymen Williams, Spitler and Bennett's districts by implementation of projects aimed at the urban core area where apartment complexes were built years ago with no provision made for recreation.  The project included the purchase and complete renovation of the old Swenson Racquet Club as a major community center for the youth of the urban area. 

 

Mr. Schlesinger added he and Assemblyman Schneider shared a similar constituency in the Spring Valley/Lakes area which was in massive need of park and recreational facilities.  In that area there would be developed a 50-acre Spring Valley Regional Park similar to the northeast regional park aforementioned with the addition of an indoor swimming pool facility.

 

He commented the commission had worked closely over the past year with the various community residents.  They had held many meetings, including evening meetings, which had been filled to capacity.  The wish list which resulted from those meetings came in at a cost in excess of $200 million.  By the time the commission had finalized the master plan they felt they had put forth a plan which, although prudent and conservative, directly addressed the needs of the community. 

 

Mr. Schlesinger stated the commission was proud of the plan because its projects list was very specific as to project content, cost and time frame for development as well as providing within the funding vehicle for the on-going operation and maintenance attendant to the construction of those facilities.

 

He requested the committee's assistance in allowing residents of Clark County the opportunity to decide whether or not they believed the current park situation should be substantially improved by passage of this bond issue.  He also stated it was the County Commission's position any area rapidly approaching the one million population density needed to do a better job of providing the infrastructure to serve such a population.  And, it was also their position the voters should be afforded the opportunity to make known their stance on the issue.  This would be the first time the community had had the opportunity to vote on a parks bond issue.

 

Mr. Schlesinger concluded future park and recreation needs might better be served by imposition of reasonable park impact fees, a concept the Southern Nevada Homebuilders were willing to support.  Legislation based on such an idea would be coming before the Government Affairs committees within the next month or so.  But the lagging needs, the infrastructure which had been deferred, must be dealt with through a mechanism such as presented in this legislation, not imposed on new or future development.  Therefore, they were working on both fronts concurrently.

 

In answer to a series of questions from Mr. Spitler, Mr. Ley stated there would only be one district created under this bill, essentially the unincorporated Las Vegas Valley area.  The bonds would be let out for the projects as they were planned for in the master plan.  He stated he did not feel it would be necessary to create additional districts in the future within the unincorporated area.  He said they would follow the same tack they had over the past months: to establish future needs through communitywide public meetings at the time circumstances called for it.  The terms in section 2, paragraph 2, the use of contiguous and noncontiguous was necessary to provide for unincorporated islands within the City of Las Vegas and the unincorporated areas adjacent to Henderson.  He stated it was, as a practical matter, the same way the fire districts were handled in those areas. 

 

In answer to a final question, Mr. Ley stated it was common practice for special districts to include notice of their hearings in conjunction with notices of hearings of the Board of County Commissioners' meetings because the board was the governing body for those special districts.  He added there was no intention to increase the parks project.  Once the public voted on it, they would know what they were getting.  Afterward, it would become an annual budgeting issue.

 

Mr. Neighbors asked if this matter had gone before the bond commission.  Mr. Ley explained this bill did provide an exemption from that requirement; however, the bond commission was aware of the exemption and had, in fact, helped to structure this bill.  Mr. Neighbors also asked if passage of this bond issue would result in a tax rate in excess of $3.64 in any governmental entity.  Mr. Ley replied it would not.  He also added Clark County was committed to support a trailer bill which would address population concerns and exclusion of rural areas.

 

In response to a question posed by Mr. Schneider, Glenn Trowbridge stated the operation and maintenance provided for in this bill pertained only to the future projects, not existing facilities.  However, due to the reduced level of use of current facilities, which would result as new facilities came on line under the new master plan, current maintenance levels should be adequate to bring those fields and facilities back to standard maintenance levels.  Mr. Schlesinger also added there would be budget hearings held soon relative to park budgets in heavy trafficked districts and, perhaps, the issue of uplifting the care of overused fields could be addressed at those hearings.

 

Mr. Regan asked if the department and the commission were taking advantage of purchasing federal lands for location of new recreation areas.  Mr. Trowbridge responded there had been utilization of federal lands at a cost of approximately $2.50 per acre, under the Recreation and Public Purposes Act.  However, in the 89109 local area no federal lands had been available, the area had been heavily and totally developed.  The only choice was to find an available site and purchase it for the benefit of the immediate community. 

 

As to Mr. Regan's question regarding user fees, Mr. Trowbridge recalled the  county commission annually established a series of user fees which were attached to various programs.  He added those rates annually generated in excess of $2 million which were put back into recreation programs and provided relief to the general fund.  User fees from the new facilities would be operated along the same lines, under direction of the county commission.

 

      ASSEMBLYMAN MARVEL MOVED DO PASS SB 307.

 

      ASSEMBLYMAN MYRNA WILLIAMS SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

There being no further business to come before committee, the meeting was adjourned at 5:35 p.m.  

 

 

      RESPECTFULLY SUBMITTED:

 

 

                             

      LINDA CHANDLER LAW

      Committee Secretary

     

 

 

 

 

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Assembly Committee on Taxation

Monday, March 29, 1993

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