Carson City

FUTURE FUNDING OPTIONS

It is time for Carson City to close the funding gap needed to maintain its streets. There is approximately $4.5 million annually of local revenue available specifically for roadway construction and maintenance projects in Carson City, yet it is estimated to cost $25.5 million in today’s dollars to maintain current road conditions. This gap will only get larger and more expensive over time. Local streets are the largest percentage (71%) of roadway type in terms of mileage within Carson City’s street network. Local streets are the foundation and access point for daily travel around town from homes to places within town. Due to the funding gap, the City has had to prioritize and direct the limited funding toward highly traveled regional streets leaving local streets untouched. Even with this strategy, only 1.4% (3.9 miles out of 286 miles) of City-owned roadways were (collectors and arterials) preserved/rehabilitated in fiscal year 2022, (Curry, Saliman, Center, Long, Silver Sage).

Carson City has been working with a financial consultant to analyze several potential new funding mechanisms for the City to identify viable financing option to help close the roads funding gap. We are nearing completion of this effort. The process will ascertain fiscal impacts and allow for achievable road rehabilitation implementation aimed at delivering projects.

Relevant Nevada Revised Statutes (NRS) for funding mechanism procedures for five preferred options are being explored:

NRS 318 – General Improvement District (GID) – A Special District would be formed and revenue for transportation improvement projects raised through special assessments on properties located within the district. Improvement projects for a GID can include project for streets, alleys, sidewalks, curb and gutter, street lighting, and snow removal. Property assessments could be based on several factors such as trip generation, street frontage, land use type, etc., with rates set annually at levels consistent with transportation infrastructure financial needs of the district.

Implementation Status: Three options for assessment methods were considered: Method 1 = Parcel Size, Method 2 = Parcel Size plus Trip Generation, and Method 3 = Parcel Size, plus Trip Generation, plus Residential Unit Type. Staff is finalizing an assessment method for presentation to the RTC should a GID be implemented.

Revenue Potential: Varies depending on assessment method; $5M to $12M annually.

NRS 271 – Program of Local Improvements – Create an ongoing list of local street improvements for the City’s complete roadway system including operations, maintenance, preservation, and minor and major rehabilitation projects. Revenue would be raised through special assessments on properties based on trip generation dependent on the property’s land use type and the special benefits conferred by the roadway system.

Implementation Status: No further analysis is occurring. This funding option can be formed at the request of specific neighborhoods. 

Revenue Potential: Cannot be determined. Depends on project size.

NRS 377B – V&T Infrastructure Sales Tax – After sunset of current V&T Infrastructure Sales Tax in 2025, a one-eighth cent sales tax could be continued on all retailers in the business of selling tangible personal property, with all funding allocated for the purpose of construction, maintenance, and repair of Carson City public roads. A portion of these funds are currently being used for regional roads.

Implementation Status: Following repayment of the V&T bond, this mechanism can be redirected to road projects with approval of the Board of Supervisions.

Revenue Potential: $2M Annually

NRS 377A – Transportation Sales Tax – The tax would impose an additional quarter cent sales tax upon all retailers in the business of selling tangible personal property, for the purpose of construction, maintenance, and repair of Carson City public roads.

Implementation Status: This mechanism will be placed on the November 2024 ballot per direction from the Board of Supervisors.

Revenue Potential: $4-4.5M Annually

For additional information of roadway funding at a statewide level, please refer to the Nevada Sustainable Transportation Funding Study found on the CAMPO website at https://www.carsonareampo.com.

New Mechanism

NRS 371 – Supplemental Government Services Tax (GST)

The Supplemental GST would impose a 1% tax on new and annual vehicle registrations to pay solely for the construction & maintenance of sidewalks & streets. The GST is based on a vehicle’s value and depreciates overtime. Nevada currently imposes a 4% GST on vehicle registrations, a portion of which returns to Carson City for various purposes. 

Implementation Status: This mechanism will be placed on the November 2024 ballot per direction from the Board of Supervisors.

Revenue Potential: $2M annually.