SUMMARY--Provides exception for certain capital projects from requirement of establishment of separate account for extraordinary maintenance, repair or improvement. (BDR 31-807)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to local governments; providing an exception for certain capital projects from the requirement of the establishment of a separate account for the extraordinary maintenance, repair or improvement of a capital project; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 354.6105 is hereby amended to read as follows:
354.6105 1. A local government in a county whose population is 100,000 or more shall establish a fund for the extraordinary maintenance, repair or improvement of capital projects. The local government shall establish within that fund a separate account for each capital project it undertakes, except a capital project for the [construction] :
(a) Construction of public roads [or a capital project for the control] ;
(b) Control of floods [.] ; or
(c) Transmission or treatment of water.
The local government shall allocate an amount equal to one-half of 1 percent of the total amount of the bonds sold for each capital project and deposit that amount in the separate account established for that capital project. The proceeds from the sale of those bonds or any other money of the local government may be used to carry out the provisions of this subsection.
2. Any interest and income earned on the money in an account within the fund in excess of any amount which is reserved for rebate payments to the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is otherwise required to be applied in a specific manner by the Internal Revenue Code of 1986, as amended, must be credited to that account.
3. The money in each account within the fund may be used only for the extraordinary maintenance, repair or improvement of the capital project or a facility which replaces that capital project. The money in each account within the fund at the end of the fiscal year may not revert to any other fund or be a surplus for any purpose other than the purpose specified in this subsection. If the local government sells any capital project for which an account within the fund was established, any balance remaining in that account must be used to reduce the debt of the local government.
4. The annual budget and audit report of the local government prepared pursuant to NRS 354.624 must specifically identify:
(a) Each fund and every account within that fund established pursuant to this section and indicate in detail any extraordinary maintenance, repairs or improvements of the capital project that have been paid for with money from the fund; and
(b) Any planned accumulation of money in each fund and every account within the fund.
The audit report must include a statement by the auditor whether the local government has complied with the provisions of this subsection.
Sec. 2. NRS 354.6107 is hereby amended to read as follows:
354.6107 1. A local government in a county whose population is less than 100,000 may establish a fund for the extraordinary maintenance, repair or improvement of capital projects. If the local government establishes such a fund, the local government must establish within that fund a separate account for each capital project it undertakes, except a capital project for the [construction] :
(a) Construction of public roads [or a capital project for the control] ;
(b) Control of floods [.] ; or
(c) Transmission or treatment of water.
2. Any interest and income earned on the money in an account within the fund in excess of any amount which is reserved for rebate payments to the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is otherwise required to be applied in a specific manner by the Internal Revenue Code of 1986, as amended, must be credited to that account.
3. The money in each account within the fund may be used only for the extraordinary maintenance, repair or improvement of the capital project or a facility which replaces that capital project. The money in each account within the fund at the end of the fiscal year may not revert to any other fund or be a surplus for any purpose other than the purpose specified in this subsection. If the local government sells any capital project for which an account within the fund was established, any balance remaining in that account must be used to reduce the debt of the local government.
4. The annual budget and audit report of the local government prepared pursuant to NRS 354.624 must specifically identify:
(a) Each fund and every account within that fund established pursuant to this section and indicate in detail any extraordinary maintenance, repairs or improvements of the capital project that have been paid for with money from the fund; and
(b) Any planned accumulation of money in each fund and every account within the fund.
The audit report must include a statement by the auditor whether the local government has complied with the provisions of this subsection.
Sec. 3. This act becomes effective on July 1, 1997.