MINUTES OF THE meeting
of the
ASSEMBLY Committee on Government Affairs
Seventy-First Session
April 24, 2001
The Committee on Government Affairswas called to order at 8:19 a.m., on Tuesday, April 24, 2001. Chairman Douglas Bache presided in Room 3143 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Mr. Douglas Bache, Chairman
Mr. John J. Lee, Vice Chairman
Ms. Merle Berman
Mr. David Brown
Mrs. Vivian Freeman
Ms. Dawn Gibbons
Mr. David Humke
Mr. Harry Mortenson
Mr. Roy Neighbors
Ms. Bonnie Parnell
Mr. Bob Price
Ms. Debbie Smith
Ms. Kathy Von Tobel
Mr. Wendell Williams
STAFF MEMBERS PRESENT:
Eileen O’Grady, Committee Counsel
Dave Ziegler, Committee Policy Analyst
Glenda Jacques, Committee Secretary
OTHERS PRESENT:
William Isaeff, Special Assistant to City Manager, City of Sparks
John Slaughter, Lobbyist, Washoe County
Robert Hadfield, Executive Director, Nevada Association of Counties
Tom Grady, Executive Director, Nevada League of Cities
David Pursell, Executive Director, Department of Taxation
Senate Bill 312: Amends charter of City of Sparks to prospectively change time for election of officers. (BDR S-146)
William Isaeff, Special Assistant to City Manager of Sparks, introduced S.B. 312, which changed the election cycle of the city of Sparks. Currently Sparks was the only political jurisdiction in Washoe County that had odd-numbered year municipal elections. Section 6 of the bill outlined the transition elections for 2001 and 2003. The people elected in June 2001 and June 2003 would each serve three-and-a-half years. Their terms would expire November 2004 and November 2006 respectively. After that, all Sparks elections would shift to even-numbered years and resume four-year terms.
The Sparks stand-alone election cost the taxpayers over $80,000. Voter turnout was below 25 percent and the city hoped an even-numbered year election would increase that. Even-numbered year elections had greater voter interest and turn out because municipal elections included the Governor, U.S. Senators, or the President of the United States. The bill had been patterned after Reno’s legislation adopted in 1993. Sparks charter committee, citizens advisory committee, and city council had all reviewed the bill and voted unanimously to change the voting cycle.
Section 7 amended the Sparks city charter to follow NRS 293C 175 for primary general election law until 2003. After 2003, Sparks would be governed by general state law as outlined in NRS 293C.175.
Mr. Isaeff introduced a letter of support from Mr. Dave Howard, Public Policy Director, Reno-Sparks Chamber of Commerce (Exhibit C), which outlined the benefit of S.B. 312.
Mr. Lee questioned how long it took to be a resident or registered voter of the city of Sparks. Mr. Isaeff replied residency was controlled by state law and was 30 days.
Mr. Lee asked why Section 12, subsection 2, changed the sealed record requirement from 6 months to 22 months. Mr. Isaeff responded it was done by the Legislative Counsel Bureau.
Mrs. Freeman asked Mr. Isaeff if he knew how much Reno’s voter turnout had increased when they changed their election cycle. Mr. Isaeff responded Reno had seen significant improvement in subsequent city elections but he did not have specific figures.
Chairman Bache asked what media the voter list referred to in Section 11 was provided in. Mr. Isaeff answered it was his understanding the Nevada public records statute required the list be provided in the media requested.
Chairman Bache questioned who would retain the ballots if the city and county general elections were held together. Mr. Isaeff stated the Washoe County registrar was very involved in the election process. He did not know who would hold the records but felt they would be retained by the appropriate official.
Mr. Isaeff thanked the committee and urged early passage so the bill could be implemented by the June 2001 election.
John Slaughter, Lobbyist, Washoe County, expressed the support of Mr. Dan Burke, Washoe County Registrar of Voters, for S.B. 312. He explained Mr. Burke retained all general election ballots.
Chairman Bache advised Mr. Isaeff to take the issue to the Sparks charter commission because it would be obsolete for Sparks to have that provision after 2003. The Chair closed the hearing on S.B. 312.
ASSEMBLYWOMAN SMITH MADE A MOTION TO DO PASS S.B. 312.
ASSEMBLYMAN HUME SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.
Senate Bill 472: Provides for disincorporation of City of Gabbs. (BDR S-1178)
Assemblyman Roy Neighbors, Assembly District No. 36, introduced S.B. 472 to dissolve the city of Gabbs. Financial distress had caused the city to be turned over to the Department of Taxation. The city was at the statutory tax rate and could not maintain city services without outside subsidization. S.B. 472 repealed all city charter provisions for Gabbs. Nye County supported the bill and would provide necessary services.
Robert Hadfield, Executive Director, Nevada Association of Counties, stated the process had been difficult for the residents of Gabbs. Nye County had indicated they would work to serve the community and provide basic services.
Tom Grady, Lobbyist, Nevada League of Cities, stated a major problem occurred when Gabbs was mandated to put in a new water system. The loan obtained to implement the mandate had caused Gabbs a financial burden. The Department of Taxation and Nye County had worked together to help Gabbs.
Mr. Neighbors explained at one time Gabbs had a large mining operation and a population of over 900. Currently, their population was around 300. Any population that dropped below 250 could automatically disincorporate. Gabbs’ charter had voted them into an incorporated city and they had to be voted out. When the Department of Taxation took over Gabbs it caused additional problems.
Mr. Brown asked why the water system was changed. Mr. Grady explained the water system was antiquated and needed repair to comply with the Federal Clean Water Act.
Mrs. Gibbons asked if there was any opposition to the bill in the Senate. Mr. Neighbors replied he had not received any calls in opposition. The declining mining industry had decreased Gabbs’ revenue base.
Ms. Parnell commented her involvement with Gabbs’ Parent Teacher Association had shown a strong community spirit. Mr. Neighbors felt it was a shame to have this happen to the city of Gabbs and the nice people that lived there.
David Pursell, Executive Director, Department of Taxation, said it was difficult to remove Gabbs’ “city” status but it was necessary. Marvin Leavitt, Chairman of the Committee on Local Government Finance, explained to the Department of Taxation that the city of Gabbs could not emerge from their severe financial emergency (Exhibit D). The decreased mine revenues had caused the net operating income to decline steadily (Exhibit E). Increasing utility fees and property taxes would not make up the difference. The table reflected the city could not exist by itself. Currently Nye County was subsidizing the city with police and garbage service.
Mr. Pursell explained the city was incorporated by the Legislature and the Legislature had to disincorporate them. If the voters decided to not disincorporate (Exhibit F) the Nevada Tax Commission would need to raise utility, sewer, garbage fees, and ad valorem property tax to the maximum of $5.00. The increase would adversely affect citizens on fixed incomes. There was not enough revenue base generated to allow Gabbs to function as a city.
Mrs. Gibbons asked if there had been citizen opposition to Gabbs’ disincorporation. Mr. Pursell replied citizens were concerned about Nye County providing necessary services and possible rate increases. Most citizens realized the disincorporation of Gabbs was necessary.
Mrs. Gibbons questioned what the current tax rate of $3.64 had generated. Mr. Pursell explained the taxes generated for fiscal year (FY) 1998 were $23,731; FY1999, $25,244; FY2000, $21,165; and FY2001, $17,604. There had been a steady decline in the tax base. An increase of the tax rate to $5.00 would generate an additional $25,000.
Mrs. Gibbons questioned how much Gabbs went into debt each year. Mr. Pursell explained the declining net operating loss in Exhibit E showed the yearly debt. The revenue base, assessed values, and population base had all declined in Gabbs.
Mrs. Gibbons asked if Gabbs had met their financial commitments before the water system was updated. Mr. Pursell explained even without the burden of the water system Gabbs could not financially survive. The Committee on Local Government Finance and the Nevada Tax Commission had monitored all steps that had been taken to dissolve the city status of Gabbs and felt it was the best thing to do.
Mrs. Gibbons asked how long Gabbs had been in financial difficulty. Mr. Pursell explained the Department of Taxation had become involved in the early part of 1999. Their initial goal was to help Gabbs get back on their feet but they realized that sufficient revenue could not be generated to support minimum city services.
Mr. Neighbors commented that upon disincorporation of the city of Gabbs the city would be covered under NRS 269. The statute gave the city flexibility to determine how they would govern themselves.
Chairman Bache closed the hearing on S.B. 472.
ASSEMBLYMAN NEIGHBORS MADE THE MOTION TO DO PASS S.B. 472.
ASSEMBLYMAN HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.
Seeing no further business Chairman Bache adjourned the meeting at 9:13 a.m.
RESPECTFULLY SUBMITTED:
Glenda Jacques
Committee Secretary
APPROVED BY:
Assemblyman Douglas Bache, Chairman
DATE: