NAC354.870. Application: Generally. [Effective through June 30, 2017.]

The governing body of a local government may, pursuant to NRS 354.6135, submit an application to the Committee for approval of a loan or transfer of money from an enterprise fund, money collected from fees imposed for the purpose for which an enterprise fund was created or any income or interest earned on money in an enterprise fund. An application for approval of a loan or transfer submitted pursuant to this section must be made on a form prescribed by the Committee and include the following information:

     1. A copy of the resolution of the local government which sets forth:

     (a) The amount of the loan or transfer and the repayment period;

     (b) A description of the purpose for which the loan or transfer will be used; and

     (c) A description of the service or services previously provided by the local government that will be restored if the loan or transfer is approved, and the effect such approval will have on service levels in future years.

     2. A written declaration by the governing body of the local government stating that:

     (a) Approval of the loan or transfer will not harm the financial viability of the enterprise fund from which the loan or transfer will be made;

     (b) The governing body will take whatever action is necessary to preserve the financial viability of the enterprise fund from which the loan or transfer will be made; and

     (c) The governing body will only use the money from the loan or transfer for the specific purpose described in the resolution required by subsection 1, unless a change in the purpose is first approved by the Committee.

     3. A description of all accounts and records relating to the purpose for which the loan or transfer will be used, including the actual proposed use of the money from the loan or transfer if the loan or transfer is approved, and how such accounts and records will be maintained separately from other funds for auditing purposes.

     4. A copy of the report of the annual audit prepared pursuant to NRS 354.624 for the fiscal year immediately preceding the year in which the application for approval of the loan or transfer is made.

     5. An analysis showing whether the ending fund balance of the general fund of the local government at the end of the immediately preceding fiscal year was less than 9 percent of the total expenditures of the local government from the general fund during that fiscal year. The analysis must not include, as the total expenditures of the local government, any transfers of money from the general fund except such transfers made for the payment of debt service or any grant match in the exact amount requested to satisfy known obligations in the fund to which the transfer was made.

     6. Documentation showing that the local government has, during each of the 5 fiscal years immediately preceding June 10, 2013, loaned or transferred money from an enterprise fund, money collected from fees imposed for the purpose for which an enterprise fund was created or any income or interest earned on money in an enterprise fund. The documentation must include, at a minimum, records showing the amount of each individual loan or transfer from an enterprise fund in each of the 5 fiscal years, along with the cumulative total of the amounts loaned or transferred within that time.

     7. For each fiscal year through June 30, 2021, projections of all revenues, expenditures, sources, uses and liabilities, including, without limitation, liabilities resulting from loans and transfers, associated with:

     (a) Any enterprise fund;

     (b) Any governmental fund that is authorized to receive taxes under the laws of this State; and

     (c) Any other fund for which there are long-term liabilities.

     8. A list of all assumptions on which the projections described in subsection 7 are based.

     9. A statement showing how the local government will inform the public about the effects of the loan or transfer on the enterprise fund, including, without limitation, any changes in rates, the fund balance and future capital expenditures. The information described in this subsection is subject to public disclosure and must also be separately provided in the form of a notice which is transmitted directly to each person known by the local government to be affected by the enterprise fund.

     10. A copy of the resolution establishing the enterprise fund from which the loan or transfer will be made, including any amendments thereto.

     11. A copy of the fee schedule for the enterprise fund from which the loan or transfer will be made.

     12. A copy of the most recent report of indebtedness required to be submitted by the local government pursuant to NRS 354.6025, updated to the current quarter and separately identifying the indebtedness of the enterprise fund from which the loan or transfer will be made.

     13. A list showing any bonds that have been issued for the enterprise fund from which the loan or transfer will be made and indicating whether the bonds are general obligation bonds or revenue bonds, the amounts, the issue dates, the schedules of payment and payment terms, including whether any balloon payments are required.

     14. Any additional information the Committee may require.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13, eff. 12-23-2013)