2001 REGULAR SESSION (71st) A SB123 34
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by renumbering sections 1 and 2 as sections 3 and 4 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:
“Section 1. Chapter 350 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. At the annual meeting in July required by NRS 350.003, the commission shall:
1. Specify a percentage, which must not be less than 75 percent, for the purposes of paragraph (d) of subsection 1 of NRS 350.0051; and
2. Establish priorities among essential and nonessential facilities and services for the purposes of paragraph (d) of subsection 1 of NRS 350.0051. Facilities and services relating to public safety, education and health must be considered essential facilities and services, and all other facilities and services must be considered nonessential facilities and services.”.
Amend section 1, page 1, by deleting lines 1 through 11 and inserting:
“Sec. 3. 1. Before a municipality may submit to the commission a proposal that will result in an increase in the rate of property taxes, the municipality shall:
(a) Determine whether there is an affected governmental entity; and
(b) If there is an affected governmental entity, provide written notification to the affected governmental entity.”.
Amend section 1, page 2, lines 2, 8, 11, 20 and 21, by deleting “ad valorem” and inserting “property”.
Amend section 1, page 2, by deleting lines 23 through 34 and inserting:
“6. In resolving a conflict pursuant to subsection 5, the commission may impose:
(a) A condition or provision described in subsection 2 of NRS 350.005; and
(b) A condition that:
(1) The amount of the general obligation debt proposed to be imposed must be reduced;
(2) The rate of the special elective tax must be reduced; or
(3) Both subparagraphs (1) and (2).
7. The commission may establish:
(a) A method for resolving conflicts over the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811;
(b) A method for determining the highest and best use of the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811, which must be based upon a comparison of the public”.
Amend section 1, page 2, by deleting lines 39 and 40 and inserting:
“(c) A procedure for allowing a municipality that does not levy the maximum amount of property taxes which it may levy pursuant to NRS 354.59811 to reserve a percentage of the remaining allowable increase of property taxes for”.
Amend section 1, page 2, lines 47 and 49, by deleting “ad valorem” and inserting “property”.
Amend section 1, page 3, by deleting lines 1 through 5 and inserting:
“8. This section does not apply to any proposal that is not expected to result in an increase in the rate of property taxes in any jurisdiction.
9. As used in this section:
(a) “Affected governmental entity” means a governmental entity:
(1) That has territory which overlaps the territory of the municipality proposing the special elective tax or general obligation debt;
(2) That is currently not levying the maximum rate of property taxes which it may levy pursuant to NRS 354.59811; and
(3) For which the total combined tax rate levied on the overlapping territory would exceed the limit set forth in NRS 361.453 if the current combined tax rate levied on the overlapping territory is added to:
(I) The tax rate projected for the special elective tax or general obligation debt being proposed by the municipality; and
(II) The unlevied amount of property taxes that currently may be levied by the governmental entity pursuant to NRS 354.59811.
(b) “Remaining allowable increase of property taxes” means the difference between the tax rate allowed for a municipality in the current fiscal year pursuant to NRS 354.59811 minus the tax rate levied by the municipality in the current fiscal year.”.
Amend sec. 2, page 3, line 7, by deleting “section 1” and inserting:
“sections 2 and 3”.
Amend the bill as a whole by renumbering sec. 3 as sec. 6 and adding a new section designated sec. 5, following sec. 2, to read as follows:
“Sec. 5. NRS 350.0035 is hereby amended to read as follows:
350.0035 1. Except as otherwise provided in this section, on or before July 1 of each year, the governing body of a municipality which proposes to issue or has outstanding any general obligation debt, other general obligations or special obligations, or which levies or proposes to levy any special elective tax, shall submit to the department of taxation and the commission:
(a) A complete statement of current [and contemplated] general obligation debt and special elective taxes, and a report of current [and contemplated] debt and special assessments and retirement schedules, in the detail and form established by the committee on local government finance.
(b) A complete statement, in the detail and form established by the committee on local government finance, of general obligation debt and special elective taxes contemplated to be submitted to the commission during the fiscal year.
(c) A written statement of the debt management policy of the municipality, which must include, without limitation:
(1) A discussion of its ability to afford existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt;
(2) A discussion of its capacity to incur authorized and proposed future general obligation debt without exceeding the applicable debt limit;
(3) A discussion of its general obligation debt that is payable from [ad valorem] property taxes per capita as compared with such debt of other municipalities in this state;
(4) A discussion of its general obligation debt that is payable from [ad valorem] property taxes as a percentage of assessed valuation of all taxable property within the boundaries of the municipality;
(5) Policy regarding the manner in which the municipality expects to sell its debt;
(6) A discussion of its sources of money projected to be available to pay existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt; and
(7) A discussion of its operational costs and revenue sources, for the ensuing 5 fiscal years, associated with each project included in its plan for capital improvement submitted pursuant to paragraph [(c),] (d), if those costs and revenues are expected to affect the property tax rate.
[(c)] (d) Its plan for capital improvement for the ensuing [3] 5 fiscal years, which must include any contemplated issuance of general obligation debt during this period and the sources of money projected to be available to pay the debt.
[(d)] (e) A statement containing the name, title, mailing address and telephone number of the chief financial officer of the municipality.
2. The governing body of a municipality may combine a statement or plan required by subsection 1 with the corresponding statement or plan of another municipality if both municipalities have the same governing body or the governing bodies of both municipalities agree to such a combination.
3. [The] Except as otherwise provided in subsection 4, the governing body of each municipality shall update all statements and plans required by subsection 1 not less frequently than [annually.] once each fiscal year.
4. In a county whose population is 100,000 or more, the governing body of each municipality shall update all statements and plans required by subsection 1 not less often than once each fiscal year and not more often than twice each fiscal year, except that a municipality may update a statement or plan required by subsection 1 more often than twice each fiscal year:
(a) If the governing body determines, by a two-thirds vote, that an emergency requires that a statement or plan be updated;
(b) To include an item related to:
(1) An installment purchase that does not count against a debt limit; or
(2) An obligation for which no additional property tax is expected;
(c) To update the purpose of a special elective tax without changing the rate of the special elective tax; or
(d) To comply with the requirements of subsection 5 of NRS 268.625 or subsection 1 of NRS 350.091.
5. The provisions of this section do not apply to the Airport Authority of Washoe County so long as the authority does not have any general obligation bonds outstanding and does not issue or propose to issue any such bonds. At least 30 days before each annual meeting of the commission, the authority shall submit to the department of taxation a written statement regarding whether the authority is planning to propose to issue any general obligation bonds before the next following annual meeting of the commission.”.
Amend sec. 3, page 3, line 45, by deleting “ad valorem” and inserting:
“[ad valorem] property”.
Amend sec. 3, page 4, lines 1 and 3, by deleting “ad valorem” and inserting:
“[ad valorem] property”.
Amend sec. 3, page 4, line 16, by deleting “may” and inserting “will”.
Amend sec. 3, page 4, by deleting lines 17 through 27 and inserting:
“affected governmental entity to levy the maximum amount of property taxes that it may levy pursuant to NRS 354.59811, unless:
(1) The proposal includes a resolution approving the proposal pursuant to subsection 3 of section 3 of this act from each affected governmental entity whose ability to levy property taxes will be affected by the commission’s approval of the proposal; or
(2) The commission has resolved all conflicts between the municipality and all affected governmental entities and has approved the increase in property taxes resulting from the proposal pursuant to section 3 of this act.”.
Amend sec. 3, page 5, by deleting lines 4 through 15 and inserting:
“subsection 4, will affect the ability of an affected governmental entity to levy the maximum amount of property taxes that it may levy pursuant to NRS 354.59811, unless:
(a) The proposal includes a resolution approving the proposal pursuant to subsection 3 of section 3 of this act from each affected governmental entity whose ability to levy property taxes will be affected by the commission’s approval of the proposal; or
(b) The commission has resolved all conflicts between the municipality and all affected governmental entities and has approved the increase in property taxes resulting from the proposal pursuant to section 3 of this act.”.
Amend sec. 3, page 5, between lines 18 and 19, by inserting:
“8. As used in this section, “affected governmental entity” has the meaning ascribed to it in subsection 9 of section 3 of this act.”.
Amend the bill as a whole by renumbering sections 4 through 6 as sections 8 through 10 and adding a new section designated sec. 7, following sec. 3, to read as follows:
“Sec. 7. NRS 350.005 is hereby amended to read as follows:
350.005 1. The governing body of the municipality proposing to incur general obligation debt or levy a special elective tax and the board of trustees of a general improvement district whose population within its boundaries is less than 5,000, who proposes to borrow money and issue any securities other than securities representing a general obligation debt, shall notify the secretary of each appropriate commission, and shall submit a statement of its proposal in sufficient number of copies for each member of the commission. The secretary, with the approval of the chairman, shall, within 10 days, give notice of a meeting, in the manner required by chapter 241 of NRS, to be held not more than 20 days thereafter. He shall provide a copy of the proposal to each member with the notice of the meeting, and mail notice of the meeting to the chief financial officer of each municipality in the county which has complied with subsection 1 of NRS 350.0035 within the past year.
2. The commission may grant a conditional or provisional approval of such proposal. Such conditions or provisions are limited to the scheduling of:
(a) The issuance and retirement of securities, if the proposal is to incur general obligation debt; or
(b) The imposition of the tax, if the proposal is to levy a special elective tax.
3. If the proposal is from a municipality, the commission may not approve any portion of the proposal that is not included in the statement filed pursuant to paragraph (b) of subsection 1 of NRS 350.0035, as updated pursuant to subsection 3 or 4 of NRS 350.0035.
4. The commission may adjourn a meeting called to consider a particular proposal no more than once, for no more than 10 days. Notification of the approval or disapproval of its proposal must be sent to the governing body within 3 days after the meeting.”.
Amend sec. 4, page 5, line 23, by deleting “1” and inserting “3”.
Amend sec. 4, page 5, lines 41 and 42, by deleting “90 percent” and inserting:
“[90 percent] the specified percentage, pursuant to subsection 1 of section 2 of this act,”.
Amend sec. 4, page 5, line 44, by deleting “levy;” and inserting:
“levy [;] in accordance with the priorities established pursuant to subsection 2 of section 2 of this act;”.
Amend sec. 4, page 5, line 47, by deleting “paragraph (a)” and inserting:
“[paragraph] paragraphs (a) and (b)”.
Amend the title of the bill by deleting the fifth through eighth lines and inserting:
“increase of property taxes and authorizing the establishment of certain methods relating thereto; authorizing a debt management commission to establish a procedure for allowing a municipality to reserve a percentage of the remaining allowable increase of property taxes within a certain geographical area; revising the duties of the debt management commission relating to consideration of a proposal to incur general obligation debt or levy a special elective tax, and amending the conditions pursuant to which the debt management commission is authorized to grant approval of such a proposal; revising the duties of a municipality with regard to filing and amending statements of current and contemplated general obligation debt and special elective taxes; and providing other matters”.