Truckee River Flood Control Project Needs Committee (FCPNC) Meeting Packet

Transcription

1 Truckee River Flood Control Project Needs Committee (FCPNC) Meeting Packet March 1, 2018

2 Truckee River Flood Control Project Needs Committee Roll Call For March 1, 2018 Voting Members (Quorum = Eight): Chair Bob LaRiviere (BANN) Vice Chair Tray Abney (Chamber of Commerce) Dave Aiazzi (City of Reno) Andrew Diss (Resort Association) Matthew Duplantis (NAIOP) Tyson Falk (Retail Assoc. of NV) Marge Frandsen (NV Assoc. of Realtors) Mike Kazmierski (EDAWN) Dick Mills (City of Sparks) Julia Ratti (State Senate) George Robison (Governor Sandoval) Scott Smith (Washoe County) Mike Sprinkle (State Assembly) Rod Young (NV AFL-CIO) Members Bob LaRiviere, Chair Tray Abney, Vice Chair Dave Aiazzi Jay Aldean Andrew Diss Matthew Duplantis Tyson Falk Marge Frandsen Mike Kazmierski Dick Mills Julia Ratti George Robison Dean Schultz Scott Smith Mike Sprinkle Rod Young Non-Voting Members Jay Aldean (TRFMA) Dean Schultz (RTAA) 9635 Gateway Drive, Suite A Reno, NV

3 Truckee River Flood Control Project Needs Committee Notice of Committee Meeting and Agenda Thursday, March 1, 2018 at 9 am TMWA Conference Rooms 1355 Capital Blvd, Reno, NV Name Representing Name Representing 1. Jay Aldean TRFMA 9. Rod Young NV AFL-CIO 2. Julia Ratti State Senate 10. George Robison Governor Sandoval 3. Mike Sprinkle State Assembly 11. Mike Kazmierski EDAWN 4. Marge Frandsen NV Assoc. of Realtors 12. Andrew Diss NGRA 5. Tyson Falk Retail Assoc. of NV 13. Tray Abney Chamber of Commerce 6. Scott Smith Washoe County 14. Bob LaRiviere BANN 7. Dave Aiazzi City of Reno 15. Dean Schultz RTAA 8. Dick Mills City of Sparks 16. Matthew Duplantis NAIOP Pursuant to NRS , this notice has been posted at the following locations: Washoe County Administration, 1001 East Ninth Street, Reno, Nevada Sparks City Hall, City Clerk, 431 Prater Way, Sparks, Nevada Reno City Hall, City Clerk, One East First Street, Reno, Nevada TRFMA Office, 9635 Gateway Drive, Ste A, Reno, Nevada and Website: Nevada Public Notice Website: Members Bob LaRiviere, Chair Tray Abney, Vice Chair Dave Aiazzi Jay Aldean Andrew Diss Matthew Duplantis Tyson Falk Marge Frandsen Mike Kazmierski Dick Mills Julia Ratti George Robison Dean Schultz Scott Smith Mike Sprinkle Rod Young Possible Changes to Agenda Order and Timing: Discussion may be delayed on any item on this agenda and items on this agenda may be taken out of order, combined with other items and discussed or voted on as a block, removed from the agenda, moved to the agenda of another later meeting, or moved to or from the consent section. Items designated for a specified time will not be heard before that time, but may be delayed beyond the specified time. Supporting Documents: Persons wanting a copy of any supporting materials may contact Laura Bayer at or obtain at TRFMA s offices at 9635 Gateway Drive, Suite A, Reno, NV or on the website at: Public Comment; Disruption of Meeting: During the Public Comment periods listed below, anyone may speak pertaining to any matter that is not on the agenda. Additionally, during agenda items, public comment will be heard on that particular item after it is opened and before any action is taken. In either event, each speaker must fill out a Request to Speak form and/or submit comments for the record to the recording secretary. Public comment and comment on any agenda item is limited to three minutes per person unless extended by questions or action of the Board. Comments are to be directed to the Board as a whole and not to one individual. The presiding officer may (with or without advance warning) order the removal of a person whose conduct willfully disrupts the meeting to the extent that its orderly conduct is made impractical. Special Accommodations: The meeting facility is accessible to the disabled; if special accommodations are required for the meeting, call Laura Bayer at at least 48 hours before the meeting Gateway Drive, Suite A Reno, NV

4 Truckee River Flood Control Project Needs Committee 1. Call to Order A. Roll Call and Establishment of Quorum B. Public Comment - During this comment period, any person is invited to speak on any topic that is not listed on this agenda. Each speaker must fill out a Request to Speak card and must limit comments to three minutes. Action may not be taken on any matter raised during this public comment period until the matter is specifically listed on a future agenda. Those who wish to comment on an item that has been listed on this agenda may comment when that item has been opened for consideration by the Board and before action is taken. C. Approval of Agenda for March 1, 2018 (For Possible Action) D. Approval of Draft Minutes of February 1, 2018 Meeting (For Possible Action) 2. Report and discussion on the results of public polling contracted for by the TRFMA. Possible action to provide direction to staff. (For Possible Action) By Jay Aldean, TRFMA Executive Director 3. Report and discussion on the revenue generated from the existing TRFMA 0.125% sales tax less operational expenses and debt repayment plus the revenue needed from new sources (Direct Benefit Areas, Federal Cost-Share and Countywide Tax) for the design and construction of the Truckee River Flood Protection Project and other related costs. Possible action to establish the total revenue needed from a new tax source for purposes of finalizing the recommendations to be made pursuant to Section 2 of Assembly Bill 375 (79 th Session 2017), or provide direction to staff. Requested by Member Ratti (For Possible Action) By John Sherman, Fiscal Solutions, LLC 4. Discussion regarding possible new tax revenue sources for the design and construction of the Truckee River Flood Protection Project, including but not limited to Property Tax, Government Services Tax, and Real Property Transfer Tax. Discussion regarding estimated revenue generated at different hypothetical tax rates, and the financial impacts to taxpayers under hypothetical scenarios. Possible action to eliminate all or certain tax revenue sources from future consideration for the funding of the Truckee River Flood Protection Project, or identify the tax revenue source(s) that will be presented to Washoe County voters for consideration together with the rates of those taxes, or provide direction to staff. (For Possible Action) By Jay Aldean, TRFMA Executive Director 5. Report, discussion and possible action to approve a flood protection fee rate pursuant to Section 2 of Assembly Bill 375 (79 th Session 2017), a range of rates, or a total DBA revenue requirement to be recommended to the Truckee River Flood Management Authority Board of Directors or provide direction to staff. Requested by Member Kazmierski. (For Possible Action) By Jay Aldean, TRFMA Executive Director and John Sherman, Fiscal Solutions, LLC. 6. Presentation and discussion regarding draft recommendations to submit to the TRFMA Board of Directors (recommendation for a flood protection fee) and the Washoe County Board of Commissioners (recommendation for imposition of a tax or taxes) in accordance with Section 2 of Assembly Bill 375 (79 th Session 2017). Possible action to approve draft recommendations as written, or with changes, for submission to the TRFMA Board of Directors and the Washoe County Board of Commissioners, or provide direction to staff. (For Possible Action) By Michael Wolz, TRFMA General Counsel 7. Discussion of schedule of future meetings and possible action to set dates, times, and venue for future meetings. (For Possible Action) By Jay Aldean, TRFMA Executive Director 8. Committee Member Comments, Requests, and Future Agenda Items 9635 Gateway Drive, Suite A Reno, NV

5 Truckee River Flood Control Project Needs Committee 9. Public Comment - During this comment period, any person is invited to speak on any topic that is not listed as an action item on this agenda. Each speaker must fill out a Request to Speak card and must limit comments to three minutes. Action may not be taken on any matter raised during this public comment period until the matter is specifically listed on a future agenda. 10. Adjournment (For Possible Action) 9635 Gateway Drive, Suite A Reno, NV

6 Truckee River Flood Control Project Needs Committee DRAFT Committee Meeting Minutes Thursday, February 1, 2018 at 9 am TMWA Conference Rooms, 1355 Capital Blvd, Reno, NV 1. Call to Order A. Roll Call and Establishment of Quorum - Chair LaRiviere called the meeting to order at 9:00 am. A quorum was established with voting members: Tray Abney, Andrew Diss, Matthew Duplantis, Tyson Falk, Marge Frandsen, Mike Kazmierski, Bob LaRiviere, Dick Mills, Julia Ratti (arrived at 9:15 am), George Robison, Scott Smith, and Rod Young. Non-voting members Jay Aldean and Dean Schultz were also present. Members Dave Aiazzi and Mike Sprinkle were absent. TRFMA staff present: Laura Bayer, Ed Evans, Danielle Henderson, Eric Scheetz, Lori Williams, and Michael Wolz. B. Public Comment - Chair LaRiviere called for public comment and hearing none, he closed this item. C. Approval of Agenda for February 1, 2018 (For Possible Action) Jay Aldean requested that Item 6 be taken prior to Item 2. Motion C to approve the agenda for February 1, 2018 as amended. Moved: Member Frandsen Seconded: Member Young Passed unanimously with those present. D. Approval of Draft Minutes of January 18, 2018 Meeting (For Possible Action) Motion D to approve the draft minutes of January 18, Moved: Member Robison Seconded: Member Frandsen Passed unanimously with those present. 6. Committee Member Comments, Requests, and Future Agenda Items Member Aldean commented about a Weather Channel Article and read part of it. California is looking to revise all their levees based on Ark Storm planning for the West Coast for a potential Megastorm. If two back-to-back 100-year storms hit, we could have a mega flood. This may become the norm in California and everything Northern California receives, we receive. California is spending $80 billion to revamp their levees and looking into federal funds, GID agencies, or user fees. He will send a link to the article to the committee members. Members Bob LaRiviere, Chair Tray Abney, Vice Chair Dave Aiazzi Jay Aldean Andrew Diss Matthew Duplantis Tyson Falk Marge Frandsen Mike Kazmierski Dick Mills Julia Ratti George Robison Dean Schultz Scott Smith Mike Sprinkle Rod Young 2. Report and discussion on the estimated cash flow requirements for the design and construction of the Truckee River Flood Protection Project assuming three Direct Benefit Areas (DBAs). The report will assume for the purposes of analysis a range of rates calculated at $8 per thousand square feet of developed square footage for DBA 1, $5 per thousand square feet of developed square footage for DBA 2, and $7 per thousand square feet of developed square footage for DBA 3. Possible action to approve a range of DBA rates (that may be higher or lower than those analyzed in the report) to be recommended to the Truckee River Flood Management Authority Board of Directors or to be used for further analysis or provide direction to staff. Requested by Member Ratti. (For Possible Action) FCPNC Meeting Minutes from February 1, 2018 Page 1 of 6

7 Truckee River Flood Control Project Needs Committee John Sherman, Fiscal Solutions, LLC, reviewed his report (Copy on file). Julia Ratti arrived at 9:15 am Andrew Diss inquired if the TRFMA Board has the authority to institute the fee, why is this committee going through this? Michael Wolz, TRFMA General Counsel stated it is part of the committee s statutory mandate, if you recommend a tax, then you must recommend the fee. Tray Abney asked if the total developed square footage includes every floor of a building; yes per Aldean. Aldean explained that s the way that the Board elected to go forward with the fee was to use the developed square footage. The Board has the ability to create an administrative process for who is in and out of the DBA. Aldean added this committee takes a position as to the amount of the fee but not on the amount of floors included in the developed square footage. Aldean indicated the Board will have to discuss and approve new DBA areas. Diss stated this committee is tasked with making a recommendation to the Board based on calculations based on total square footage; he recommends it being based on the square footage actually impacted. In response to an inquiry from Julia Ratti, Wolz referred to AB375, Sec. 2 1(a) 3 and noted that the committee must set a proposed rate and may specify the period when it can be imposed. Wolz indicated the committee could set a minimum rate and give the Board discretion to go above that number and leave as much discretion to the Board for the timing and the amount. Ratti commented that it doesn t say we have to set a rate for that, just a fee structure; she may ask the Legislative Counsel Bureau for an opinion on that because the legislative intent is that the people who are benefiting from improvements should have to pay a fee. This committee could recommend zero for a fee, but we have to contemplate the fee first before going for a tax. There is the opportunity to leave it relatively broad. Wolz agreed that would be his preference as well. Aldean commented that the usage of developed square footage is supposed to indicate economic activity on the site. Using this metric for charging fees has never been done in this country. Robison commented that if hired as an expert witness, one way to attack the fee is to say that the GSR has 25 floors that have no damage yet the fee includes a damage component. A more legally defensible position would be to put the fee on the lower floors and then a nuisance fee for the higher floors. Aldean agreed that s a good argument and the Board could use it. Wolz stated this committee could identify a lump sum that DBA fees are going to generate and that would be within the spirit of the statute. Dean Schultz cautioned to be careful not to over burden the DBA area people to where they don t want to support this. The $8 DBA would cost more than RTAA s current FCPNC Meeting Minutes from February 1, 2018 Page 2 of 6

8 Truckee River Flood Control Project Needs Committee insurance; it would cost $200K plus when they re now paying $20K per year. Schultz noted that Business Interruption is included in that flood insurance. The 1997 flood put the airport down for 36 hours. Frandsen inquired about the residential DBA fees. Aldean answered that 98% of DBA is commercial/industrial and because residential is such a small amount we didn t bother with a calculation; there are only about 100 homes. A fee of $25 per house per month was calculated about 4 years ago and that amount probably offsets their current flood insurance; it did not use square footage for homes. Aldean added because the number is so small, he decided not to include it. Diss asked if government buildings are exempted from it; no per Aldean, but we cannot impose it on the Feds. Wolz explained that with the RSIC, there was a development agreement which states the tribe can either take over the cost of the maintenance of the levee or pay the fee. Eric Scheetz, TRFMA Engineer added that the RSIC paid for over half that project. Sherman continued his presentation. Kazmierski stated the committee has got to decide two things: Do we accept the DBA amounts used for the estimates as a generally reasonable number? Do we go with scenario one or two? Sherman spoke about the aggregate DBA revenue vs aggregate tax revenue, referencing Table 2 on Page 4, this new tax for Scenario 1 has to generate about $185 million. The equivalent period of time for all three DBAs is about $82 million so you get a context of how much is coming out of the county-wide tax versus the DBA revenue stream. Ratti commented that the DBA is $82 million, the Federal Cost-Share is $168.5 million ($180 million less the $13.5 million), how much does the 1/8 cent sales tax generate? Sherman is working on a way to simplify multiple cash inflows and outflows: taking the existing sales tax revenue and asking what can it pay for and how much? For example, maintenance and operations, revenue dedicated for debt repayment, take that revenue stream and deduct all that, then look at the other revenue streams (DBAs, federal government, project costs, debt payments), what is required after that and that comes out to $185 million. He is simplifying it down to 6 or 7 lines items that takes that into play. And hoping to finalize those numbers tomorrow. Ratti added get the revenue amount that is generated with the existing sales tax to Kazmierski s list of what needs to be done. Ratti summarized: we make a recommendation on fee proposal then it is up to the discretion of Board to proceed with that fee; we make recommendation of the tax and that is the tax that has to go on the ballot. Wolz disagreed, his interpretation is that if the committee recommends an actual amount, the Board is bound by that. If the committee says the DBAs to be defined by the Board will generate X in total revenue over the life of the project; LaRiviere interjected that the committee cannot guarantee what a fee will generate over its lifetime. Wolz added that there s no guarantee with a FCPNC Meeting Minutes from February 1, 2018 Page 3 of 6

9 Truckee River Flood Control Project Needs Committee tax either. He cannot guarantee the fee, no matter how it is defined, will pass legal muster, it may be shot down by the court system. Kazmierski suggested since the fee doesn t start until 2025, the Board has time to figure out how to get there. Frandsen asked how to get to the number if we don t know what the square footage we re dealing with; at this point we haven t determined that. Ratti suggested the committee say $82 million minus ten percent to give the Board some leeway or give them a range between $70 million and $82 million. She doesn t think we should make the square footage decision because that requires public hearings and stakeholder input. Kazmierski agrees with Julia, adding that in the next seven years, there will be millions of square footage added to this area. Schultz stated it was his understanding that the rate would not applied to new development. Aldean noted that DBA 2 could apply. Schultz replied that it sounds like the airport will be taxed for wet stuff and access to existing buildings as well as future development. Aldean stated the procedures for waiving people out of the DBAs have not been developed. If the building has access it is no longer in DBA 2. Staff would have to do a business analysis of every account in the area. Ratti asked if the committee could craft the recommendation so we have a lot of leeway; say look at a range of fees for these DBA areas so we have a number to use for our assumptions to move forward. The Board can reduce the scope of the flood project based on tax revenue because they are going to be dealing with them for years. We use $82 million but don t send that number to the Board. Schultz stated come April when a ballot question is being prepared he cannot support it if the fee is not definite. Aldean offered to do some engineering work to give the airport some comfort level. Member Kazmierski moved to go with Scenario 1 and use $82 million as a funding number and maximize discretion to the Board. Member Ratti seconded for discussion. Robison stated he would like to split this process, first establish that Reno is included (Reno plus the Meadows). Kazmierski amended his motion to approve Scenario 1, Ratti agreed as seconder, and Chair LaRiviere called for a vote. Member Diss opposed, all others in favor, motion passed. 3. Report from Committee Members on the tax revenue source(s) preferred by the organizations they represent and discussion of those reports. Requested by Chair LaRiviere. The Committee Members stated their opinions regarding the four taxes currently under consideration. 4. Discussion regarding possible new tax revenue sources for the design and construction of the Truckee River Flood Protection Project, including but not limited to Property Tax, Government Services Tax, Real Property Transfer Tax, and Room FCPNC Meeting Minutes from February 1, 2018 Page 4 of 6

10 Truckee River Flood Control Project Needs Committee Tax. Discussion regarding estimated revenue generated at different hypothetical tax rates, and the financial impacts to taxpayers under hypothetical scenarios. Possible action to eliminate all or certain tax revenue sources from future consideration for the funding of the Truckee River Flood Protection Project, identify certain tax revenue sources for further analysis, establish the amount of tax revenue to be raised to fund the Truckee River Flood Protection Project, identify the tax revenue sources that will be presented to Washoe County voters for consideration together with the rates of those taxes, or provide direction to staff. (For Possible Action) Member Diss moved to eliminate the Room Tax from consideration, Kazmierski seconded. All in favor, motion passed. Member Frandsen moved to remove Real Property Transfer Tax from consideration, Abney seconded. Robison noted that out of the polling Real Property Transfer Tax is the only viable one; we may as well disband the committee if we re going to try to do a property tax. Frandsen said she wants to be sure that people being polled understand the question and the impact it would have on a homebuyer. Kazmierski stated the reality is that room tax has a large well-funded contingency that would kill the vote. Abney said one could argue that there is a large and well-funded opposition to a real estate transfer tax. Frandsen agreed with what Abney just said. With a motion and second on the floor, Chair LaRiviere called for a vote: Members Diss, Duplantis, Abney, and Frandsen were in favor; all else opposed, motion failed. Chair LaRiviere called for any other motions and receiving none, he closed this item. 5. Discussion regarding the next round of public opinion polling, including, but not limited to, identifying specific project costs and potential tax increase amounts to use in the polling questions. Possible action to identify specific project costs and potential tax increase amounts to use in the polling questions, identify topics or questions for use in the poll, form a subcommittee to write questions for the pollster, or provide direction to staff. (For Possible Action) Jay Aldean, TRFMA Executive Director will contact the pollster to set up questions for the poll to be done this month. The poll will include real dollar examples in the questions and secure a larger sample size. In response to a request from Kazmierski, Aldean said he will send the questions to the committee prior to sending them to the pollster; however, he will not be looking for general comments. Smith suggested having a lead-in explanation about the project prior to polling, Aldean agreed. Chair LaRiviere announced there is no need to meet prior to receiving the polling results so the meeting on February 15 th is canceled. FCPNC Meeting Minutes from February 1, 2018 Page 5 of 6

11 Truckee River Flood Control Project Needs Committee 6. Committee Member Comments, Requests, and Future Agenda Items Aldean stated he will be having back surgery on February 21 st and he will be off for a week. Diss asked Ratti to share the legal opinion she will get from the LCB because he doesn t necessarily agree with how the committee s counsel is reading the bill. Ratti is considering whether to reach out to the LCB or not. Diss will leave it to Ratti s discretion. 7. Public Comment - Chair LaRiviere called for public comment and hearing none, he closed this item. 8. Adjournment (For Possible Action) The meeting adjourned at 11 am. Summary of Committee Member Requests from February 1st Meeting A. Aldean will send the Arkstorm article to the Committee Members (Young). B. Aldean will send polling questions to the Committee Members prior to doing the polling (Kazmierski). C. John Sherman will calculate the revenue generated with the existing sales tax. (Ratti) Respectfully submitted, Laura J. Bayer, FCPNC Liaison Approved in Session on. FCPNC Meeting Minutes from February 1, 2018 Page 6 of 6

12 TRUCKEE RIVER FLOOD CONTROL PROJECT NEEDS COMMITTEE Meeting Of March 1, 2018 Agenda Item #3 Report and discussion on the revenue generated from the existing Truckee River Flood Management Authority s 0.125% sales tax less operational expenses and debt repayment plus the revenue needed from new sources (Direct Benefit Areas, Federal Cost-Share And Countywide Tax) for the design and construction of the Truckee River Flood Protection Project and other related costs.

13 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Summary The purpose of this report is to provide a summary of the revenues and costs associated with the Truckee River Flood Protection Project that will facilitate an understanding of the Project financing requirements. Cash Flow Analysis This report is based on Scenario 1 included in Agenda Item #2 on the Flood Control Project Needs Committee agenda of February 1, 2018 (See Cash Flow Assumptions on Page 7). Results The results of the summary cash flow analysis is shown in the following tables: Table 1 Cash Flow Summary All Funds, See Page 2. Table 2 Cash Flow Summery Allocated Between Revenue Sources, See Page 3. Table 3 Ending Cash Balances, See Page 4. Table 4 First Alternative Summary, See Page 5. Table 5 Second Alternative Summary, See Page 6. Detail Cash Sources And Uses By Fund The cash flow details supporting the summary cash flow analysis is shown on the following tables: General Fund Sources of Funds, See Page 8. General Fund Uses of Funds, See Page 9. Emergency Replacement Reserve Fund, See Page 10. Capital Projects Fund, See Page 11. Debt Service Fund, See Page 12. 1

14 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Table 1 shows the combined cash sources and uses of the four funds used in Scenario 1 (i.e., the General Fund, the Emergency Replacement Reserve Fund, the Capital Projects Fund and Debt Service Fund). 2

15 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Table 2 shows the sources and uses of cash in Table 1 divided into two groups: one that is linked to the existing 0.125% Sales Tax revenue and one that is linked to the total of New Revenues that includes a Countywide Tax, Direct Benefit Area Fees and Federal Cost Share. 3

16 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Table 3 shows the allocation of the ending cash balances by source by fund and by the ending cash balances by fund. 4

17 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Table 4 shows the first alternative summary of the cash flow information in Table 2. 5

18 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS Table 5 is the second alternative summary of the cash flow information in Table 2. This table shows the sources and uses of cash flows linked to New Sources of Revenue with one line showing the balance of Sales Tax Linked Cash Linked Net Sources Over Uses as a source of cash. 6

19 Cash Flow Assumptions TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS The cash flow analysis in this report is based on Scenario 1 included in the report for Agenda Item #2 on the Flood Control Project Needs Committee agenda of February 1, Scenario 1 is based on the following assumptions: Build all Downtown Reno and Meadows project elements for the Truckee River Flood Protection for a total projected (nominal) cost of $597.5 million. The Lake Street Bridge is to be built by the Regional Transportation Commission and the Truckee River Flood Management Authority pays for about one-half of the cost. The Sierra Street Bridge is built and paid for by the Regional Transportation Commission. The Project is completed in FYE The cash balance in the Emergency Replacement Reserve Fund is based on approximately 5% of the replacement cost of the project at the end of construction in FYE The fees imposed in the three Direct Benefit Areas (DBA) are as follows: DBA #1 at $8/ksf per month beginning in FYE 2025 and is related to business and property damage avoidance in the Meadows. DBA #2 at $5/ksf per month beginning in FYE 2025 and is related to business damage avoidance in the Meadows. DBA #3 of $7/ksf per month beginning in FYE 2039 and is related to business and property damage avoidance in the Downtown Reno. The required New Tax Revenue can be generated by any one of the following tax rates: Property Tax Rate = $ Government Services Tax Rate = $ Real Property Transfer Tax Rate = $0.30. The Federal cost share included in this analysis assumes payments to the Corps totaling $13.5 million and revenue from the Corps total $182 million. 7

20 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS 8

21 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS 9

22 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS 10

23 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS 11

24 TRUCKEE RIVER FLOOD MANAGEMENT AUTHORITY TRUCKEE RIVER FLOOD PROTECTION PROJECT AND OPERATIONS SUMMARY CASH FLOWS 12