Reno City Council & Redevelopment Agency Board
Tuesday, August 28, 2012
What Happened
The Reno City Council and Redevelopment Agency Board met on August 28, 2012, to resolve a tax allocation dispute affecting Reno, Washoe County, the school district, and the state.
Key Decisions
• APPROVED — Settlement agreement resolving tax increment allocation dispute — Unanimous — Establishes how tax dollars will be split between the Redevelopment Agency and other government agencies for the next 10 years, and requires correct allocation of funds going forward.
Debated But Not Resolved
• Tax increment allocation interpretation — Council members questioned whether the county was subsidizing the city and asked how the school district would recover lost revenue. The dispute centered on whether tax increment should count toward or on top of minimum allocations, a difference worth $64 million. Parties agreed increment counts as part of minimum allocation.
What to Watch
• $1.4 million — Settlement payment to RDA for 2011-2012 tax increment gap — Washoe County, School District, State of Nevada split proportionately.
• $4.17 million — Settlement payment to RDA for improperly allocated tax increment from exempt property transfers (2000-2010) — Washoe County, School District, State of Nevada split proportionately.
• $1.5 million — School District settlement obligation — Structured as $350,000 by November 22, 2012, then additional payments May 25, 2013 and August 25, 2013.
• $1.4 million — Settlement payment for base value reduction error — Paid by agencies responsible for the error.
Washoe County approval — The settlement requires approval from Washoe County commissioners before it takes effect. Timeline unknown.
School District approval — Washoe County School District must also approve. School District leaders previously raised concerns about fiscal impact.
Court filing — After all parties approve, they will ask a court to confirm the statutory interpretation to prevent similar disputes in the future.
Get Reno government news every week
Every vote. Every debate. Zero jargon.