1. Presentation to Nevada Assembly Committee on Government Affairs February 17, 2015

2. ABOUT FERNLEY

3. About Fernley Population: 19,368 (2010 census) Projected population by 2021: 30,000 Families represent 75.1% of population (higher than average) Median age: 34.8 (lower than average) Occupies 160 square miles

4. About Fernley Formally incorporated in 2001 At time of incorporation population was 6,800 Population nearly tripled due to development in Fernley and TRIC, affordable housing boom

5. About Fernley City government services include: Public Works and Utility (including streets, water, wastewater), Community Development (planning, building and code enforcement, economic development), Parks and Recreation, City Attorney, City Clerk, Animal Control, Municipal Court Lyon County Sheriff provides law enforcement North Lyon County Fire District provides fire protection

6. THE NEVADA CONSOLIDATED TAX (CTX) ISSUE

7. CTX Issue CTX implemented in 1997 to distribute six different taxes to municipalities First tier: allocated to 17 counties Second tier: each county’s distribution to city/local governments and special districts according to Base and Excess Distribution formulas

8. CTX Issue Each entity had base allocation established in 1997 Problem: City of Fernley was not incorporated in 1997 Dept. of Taxation had to determine the base allocation for Fernley after incorporation since Fernley is the only city incorporated after 1997 The base allocation for Fernley is inequitable compared to other Nevada cities

9. THE CTX INEQUITY

10. The CTX Inequity The CTX base allocation determined after its incorporation is inequitable compared to other cities and inadequate for our current population, much less the projected future growth given Nevada’s economic development successes.

11. The CTX Inequity City 2013 Pop % Growth Since 2001 2013 CTX Total % Increase Since 2001 2013 CTX Allocation 2013-14 Municipal Budget Fernley 18,98799.25%$133,050.3033.01%$7.01 per citizen$8,636,493 Mesquite 17,47746.37%$7,336,084.7140.63% $419.76 per citizen $42,066,527 Elko 20,95822.61%$13,521,334.12109.38% $645.16 per citizen $23,941.346

12. The CTX Inequity Why should the value of a Fernley man, woman or child be only $7 compared to other cities’ citizens The base calculation formula is outdated and inadequate, not appropriate for a “new” city with dramatic growth and needs It prevents Fernley City government from providing necessary services, now and in future

13. WHAT WE HAVE TRIED TO DO TO RESOLVE THIS

14. What We Have Tried Tax Department changes, relief Relief within our county for CTX funding Legislative relief Relief from the courts

15. THE PRESENT IS CHALLENGING, THE FUTURE IS FRIGHTENING

16. The Present is Challenging Budget Staffing Roads Parks Other Infrastructure

17. The Future is Frightening The good news for northern Nevada: Economic development is very successful (TRIC: Tesla, Switch, etc.) The bad news for Fernley: There are no resources or infrastructure to support new industry or residents

18. The Future is Frightening Two stories with foreboding about what the future holds.

19. The Future is Frightening Fernley can not support the new growth projected to flood into Northern Nevada. We have no infrastructure or resources to support our current industrial and residential base, much less any new expansion.

20. What We Are Requesting An understanding of the seriousness of the situation and its impact on economic development for Nevada More equitable treatment of Fernley citizens relative to other Nevada cities A one-time adjustment to the base allocation to allow us to serve our businesses and residents

21. THANK YOU.