DEBT MANAGEMENT COMMISSION CLIFFORD EKLUND JAY ELQUIST ANNETTE KERR CHARLIE MYERS CHARLIE MYERS JR. PAUL STEVENS LYNNE VOLPI STATE OF NEVADA, ) COUNTY OF ELKO. ) ss. The Debt Management Commission met in a regular session on August 14, 2012, at 10:00 a.m., in Suite 102 of the Nannini Building, at 540 Court Street, Elko, Nevada. There were present: Debt Management Member Cliff Eklund Debt Management Member Jay Elquist Debt Management Member Annette Kerr Debt Management Member Charlie Myers Debt Management Member Charlie Myers, Jr. Debt Management Member Paul Stevens Debt Management Member Lynne Volpi Others Present: Deputy County Clerk Marilyn Tipton Elko County School District Jeff Zander West Wendover CFO Michelle Giovo W. Wendover Recreation Dist. Jamey Christie Carlin City Manager Glenn Trust --- CALL TO ORDER: Chairwoman Kerr called the meeting to order at 10:04 a.m. Commissioners Cliff Eklund was absent this time. 10:05 AM: I. COMMENTS BY THE GENERAL PUBLIC: No comments were submitted. 10:06 AM: II. APPROVAL OF MINUTES: Approval of preceding minutes dated February 7, 2012. MOTION: Commissioner Myers Sr. moved to approve the meeting minutes for PAGE 1
10:07 AM: August 30, 2010. Commissioner Stevens seconded the motion. The motion passed by majority vote. III. REVIEW OF POLICIES, PLANS and INDEBTEDNESS REPORTS: Central Dispatch Administrative Authority MOTION: Commissioner Stevens moved to approve the Central Dispatch Administrative Authority plan and Indebtedness Report. Commissioner Myers Sr., seconded the motion. Annette Kerr stated their report was lacking in explanation. She inquired if the County set aside funding for the radio upgrades. Commissioner Myers replied $2.5 million dollars was set aside for the system and for software upgrades. He stated the County would pay for their radios. Glenn Trust, Carlin City Manager, arrived at 10:07 a.m. The motion passed by majority vote. Commissioner Eklund was absent at the time of the vote. City of Carlin MOTION: Commissioner Myers Sr., moved to approve the City of Carlin s plan and Indebtedness Report. Commissioner Myers Jr., seconded the motion. Commissioner Stevens commended the Carlin City Council approving the report. He noted the County also approved their report before submission. Chairman Kerr inquired about the waterline debt to the Fire Science Academy wherein under the general obligation bond they listed it as $116,629 with a balance of approximately $101,000. Glenn Trust explained the discrepancy was the amortization and it was a typing error. The balance was $101,000 as of this fiscal year. He commented the 40 year bond would be paid off in 2018. Chairman Kerr referred to NRS 350.013 c (3) wherein there should be a comparison with similar entities. Glenn Trust stated he was not familiar with that statute. The motion passed by majority vote. Commissioner Eklund was absent at this time. Commissioner Eklund arrived at 10:11 a.m. City of Elko MOTION: Commissioner Myers Sr., moved to approve the City of Elko s plan and Indebtedness Report. Commissioner Volpi seconded the motion. PAGE 2
Commissioner Myers commended the City of Elko upon the detail in their report. City of Wells Chairman Kerr commented their Indebtedness Report displayed the Fiscal Year being 2012/2013 rather than 2011/2012. Commissioner Myers assumed it was their current year and felt the City of Wells had looked at it as a full year. Jamey Christy understood the Indebtedness Report was to be for the Fiscal Year ending June 20, 2012 but the policy and capital improvement plan was based upon the FY 2012/2013. Chairman Kerr asked that staff notify the City of Wells of that. Glenn Trust stated the 2012 would address two separate fiscal years. MOTION: Commissioner Myers Sr., moved to approve the City of Wells plan and Indebtedness Report. Commissioner Volpi seconded the motion. Commissioner Elquist stated some reports did not have their interest rates listed upon their bonds. He commented the City of Elko had refinanced some of their bonds at a lower rate and suggested the other entities consider refinancing to pick up points. Commissioner Myers stated that was a good discussion for the City Managers. Commissioner Stevens noted that Wendover continuously refinanced their bonds so they were well aware of that savings. Chairman Kerr requested that this section of the minutes be highlighted to draw the entities interest. City of West Wendover MOTION: Commissioner Myers Sr., moved to approve the City of West Wendover s plan and Indebtedness Report. Commissioner Myers Jr., seconded the motion. Commissioner Stevens noted upon page 3 it spoke about the general obligation bonds and C-1 would be resubmitted with corrections. He inquired if that was resubmitted. Michele Giovo, West Wendover CFO, explained they had been prepared but not yet sent to the Department of Taxation. She stated there would be no impact PAGE 3
upon the Indebtedness Report the only correction was to the budget. Commissioner Stevens asked how often the City of West Wendover reevaluates their assessed value. He noted every year they have an assessed evaluation on page 11 at $124 million dollars. Michele Giovo stated that calculation was upon their submitted budget and that changed every year. Commissioner Stevens stated their debt capacity was listed at $37 million dollars. He noted they had two future projects planned at $34 million dollars. Michele Giovo stated several projects were falling off within that time period. Chairman Kerr said in their report they stated there was no current plans for general obligation supported by ad valorem, yet later in the report it stated they would take on new debt for rehabilitation work on the water storage facility. She believed that debt would utilize their general revenue bonds. Michele Giovo explained that was a two part bond with the State USDA medium term 10 year bond and one was a non-payable bond. Commissioner Stevens stated their Capital Projects Fund listed bonding, private sources, and grants which totaled the $34.5 million dollars. Michele Giovo clarified a significant amount came from a TIGR Grant which would fully fund those projects. She reported those projects were already in the works. Commissioner Stevens stated the five year Capital Improvement Plan pages 24-33 was exceptionally well done. Michele Giovo stated the Assistant City Manager had prepared it. Commissioner Myers suggested they amend the paragraph upon the medium term financing rather than redo the entire report. County of Elko Commissioner Myers disclosed that he sat as a County Commissioner and sat upon the budget committee. MOTION: Commissioner Stevens moved to approve the County of Elko s plan and Indebtedness Report. Commissioner Elquist seconded the motion. Chairman Kerr inquired if they had updated their Debt Management Policy. Commissioner Myers did not believe they had changed their Debt Management Policy. Chairman Kerr commented the Department of Taxation had changed their forms. The motion passed unanimously Elko Convention & Visitors Authority Commissioner Myers disclosed he sat upon the ECVA Board. Commissioner Elquist disclosed he also sat upon the ECVA Board. PAGE 4
MOTION: Commissioner Stevens moved to approve the Elko Convention & Visitors Authority s plan and Indebtedness Report. Commissioner Volpi seconded the motion. Chairman Kerr commented under page 3 there was a difference in the forms so there was not a consistency; they were not using the same forms. She noted they indicated that they did not update their Debt Management Policy. Commissioner Myers stated the Board discussed that but did not update the Policy. He stated that Board would reevaluate the policy later. Chairman Kerr stated the statutes indicate that all these narratives have to be included. She noted one of the Indebtedness Report forms said yes and the other Indebtedness Report said no. The motion was passed unanimously. Elko County Recreation Board MOTION: Commissioner Stevens moved to approve the Elko County Recreation Board s plan and Indebtedness Report. Commissioner Myers Sr., seconded the motion. Chairman Kerr commented they had marked not applicable upon their policy. Commissioner Myers noted this was not a County entity. He stated they were to come to a Commissioner meeting last week but cancelled that meeting. He stated they were attempting to reschedule that meeting. The motion passed unanimously Elko County School District Chairman Kerr disclosed she sat upon the School District Board of Trustees. MOTION: Commissioner Stevens moved to approve the Elko County School District s plan and Indebtedness Report. Commissioner Myers Sr., seconded the motion. Commissioner Stevens noted on page 3 under the general debt comparison they have previously told the School District that they only need to look at comparable cities. He noted the School District had listed all seventeen counties in the State. He noted all counties were not comparable due to the population. Commissioner Stevens believed their contractor was charging the School District for this information which was unnecessary. Chairman Kerr would speak to Jeff Zanders. She noted their last request was not to submit comparisons with other districts so they submitted their comparisons with the other cities. Commissioner Myers stated it was good information in the packet and the PAGE 5
information was easy to understand. Elko Television District Commissioner Myers Jr., disclosed that he sat upon the board. MOTION: Commissioner Myers Sr., moved to approve the Elko Television District s plan and Indebtedness Report. Commissioner Stevens seconded the motion. Chairman Kerr inquired why there were economic conditions amended when no one else did. Commissioner Myers stated they assumed some of the Carlin TV District s assets which were $25,000 in a fund together with the equipment. He assumed Elko County would dissolve the Carlin TV District. Commissioner Eklund stated the Carlin TV District did not exist. Glenn Trust stated the City s attorney wanted a Resolution dissolving the district. He stated the City of Carlin would like to retain some of the physical assets, repeater and rack space. Commissioner Myers stated the County Commission would dissolve the district and may submit a written document passing upon those assets over to the City. Commissioner Myers Jr., stated no funding was turned over to the Elko TV District. He reported the Elko TV District bought the license from the Carlin TV District. Glenn Trust stated the draft Resolution included designation of the physical assets. Commissioner Stevens inquired if the Elko TV District was a government operation because they have a negative balance. Commissioner Myers Jr., replied no and explained last year they had a negative balance of $158,000 because they had to replace ad valorem back to the one of the mines. Commissioner Elquist stated they had $163,000 in depreciation on their equipment. Commissioner Myers acknowledged that reimbursed ad valorem become an issue and there were adjustments. West Wendover Recreation District: MOTION: Commissioner Myers Sr., moved to approve the West Wendover Recreation District plan and Indebtedness Report. Commissioner Eklund seconded the motion. Commissioner Stevens stated on page 2 under schedule of indebtedness they show a general obligation bond debt of $697,000 but yet show no total indebtedness. Jamey Christy stated the excel spread sheet did not carry it through PAGE 6
but the right amount was $697,000 and she would correct that. Chairman Kerr inquired if they had considered refinancing. Jamey Christy stated they were looking to build a recreation center but recreation bonding was not very successful compared to municipal bonding. She noted under their capital improvement plan they allocated money for the recreation center. She noted their room taxes were coming back up and they were hoping for a better bond market. Jamey Christy stated their architect had designed a phased-in plan for the recreation center wherein they could pay for it in cash. Chairman Kerr inquired if there may be an impact from the mine. Jamey Christy stated they had spoken to mine reps who said they were quite a ways out. The motion was passed unanimously. Chairman Kerr acknowledged they received the Carlin TV District s Indebtedness Report but it was not upon the agenda. Carlin City Mayor Cliff Eklund stated Carlin District voted to disband and join into the Elko TV District. Chairman Kerr clarified for the record that action had not been approved. 10:43 AM: IV. COMMISSIONERS AND STAFF COMMENTS: Commissioner Elquist stated based upon some of the comments he questioned if there should be a training session for the entities with the state. He recommended a check off list for the entities. Chairman Kerr would work with staff and Cash Minor. She believed some of the reports seemed incomplete. She noted there were different indebtedness reports utilized by the entities. 10:45 AM: COMMENTS BY THE GENERAL PUBLIC: No public comments were submitted. 10:46 AM: V. ADJOURNMENT: MOTION: Commissioner Myers Sr., moved to adjourn the meeting. Commissioner Eklund seconded the motion. The motion passed unanimously. There being no other business to come before the Board, the meeting was adjourned at 10:46 a.m. APPROVED ATTEST: MARILYN TIPTON, Deputy Clerk ANNETTE KERR, Chairperson PAGE 7