Carson City

FUTURE FUNDING OPTIONS

It is time for Carson City to close the funding gap needed to maintain neighborhood streets. There is approximately $4.5 million annually of local revenue available 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. These neighborhood streets are the largest percentage (71%) of roadway type in terms of mileage within Carson City’s street network. Neighborhood 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 neighborhood streets untouched. Even with this strategy, only 1.7% (4.7 miles out of 284 miles) of City-owned roadways were preserved/rehabilitated in fiscal year 2021.

Carson City is working with a financial consultant to complete an analysis of potential new funding mechanisms for the City to identify viable financing option to help close the roads funding gap. The process will ascertain fiscal impacts and allow for achievable road rehabilitation implementation plans.

Relevant Nevada Revised Statutes (NRS) for funding mechanism procedures for four 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: Several assessment options are being analyzed which will determine the cost to individual properties. Look for more updates on this mechanism in early 2024.

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: This mechanism is formed at the request of neighborhoods.

NRS 377B – V&T Infrastructure Sales Tax – After sunset of current V&T Infrastructure Sales Tax in 2025, a one-eighth cent sales tax would be reimposed on all retailers in the business of selling tangible personal property, and allocated for the purpose of construction, maintenance, and repair of Carson City public roads.

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

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.

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 http://www.carsonareampo.com.