USA Statutes : nevada
Title : Title 30 - PUBLIC BORROWING AND OBLIGATIONS
Chapter : CHAPTER 350 - MUNICIPAL OBLIGATIONS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 350.0045
to 350.0075 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2001, 2303 )
“General
obligation debt” means debt that is legally payable from general
revenues, as a primary or secondary source of repayment, and is backed by
the full faith and credit of a governmental entity, and if the
governmental entity is authorized to levy taxes, by those taxes. The term
includes, without limitation, debt represented by local government
securities issued pursuant to this chapter and installment-purchase
agreements described in subsection 1 of NRS 350.0055 . The term does not include, without
limitation:
1. Installment-purchase agreements described in subsection 2 of
NRS 350.0055 ;
2. Special obligations; and
3. Obligations with a term of less than 1 year that are payable in
full from money appropriated for the same fiscal year in which the
obligations are incurred.
(Added to NRS by 2001, 2303 )
“Installment-purchase agreement” means an agreement for the purchase of
real or personal property by installment or lease or another transaction
that is described in NRS 350.800 which:
1. Is required to be counted against any limit upon the debt of a
local government pursuant to subsection 1 of NRS 350.800 ; or
2. Is not required to be counted against any limit upon the debt
of a local government and:
(a) Exceeds $100,000 for a local government in a county whose
population is 100,000 or more; or
(b) Exceeds $50,000 for a local government in a county whose
population is less than 100,000.
Ê The term “installment-purchase agreement” does not include an
obligation to pay rent pursuant to a lease which contains no option or
right to purchase or which contains only an option or right to purchase
the property without any credit towards the purchase price for lease or
rental payments.
(Added to NRS by 2001, 2303 )
“Local government” has
the meaning ascribed to it in NRS 354.474 .
(Added to NRS by 2001, 2304 )
“Medium-term
obligation” means an obligation to repay borrowed money evidenced by a
note or bond which is authorized to be issued pursuant to NRS 350.087
to 350.095 , inclusive, and which has a term of 10 years
or less. The term does not include an obligation which has a term of less
than 1 year and which is payable in full from money appropriated for the
same fiscal year that the obligation is incurred.
(Added to NRS by 2001, 2304 )
“Special obligation”
means a municipal security issued pursuant to NRS 350.582 .
(Added to NRS by 2001, 2304 )
For the
purposes of this chapter, the term of an installment-purchase agreement
must be determined as the period from the date the agreement is entered
into by a local government to the date that the purchase price will be
paid in full and must include the term of the original agreement and the
term of any renewal, including, without limitation, an optional renewal,
of the agreement.
(Added to NRS by 2001, 2304 )
1. The Committee on Local Government Finance may adopt such
regulations as are necessary for the administration of this chapter.
2. Any regulations adopted by the Committee on Local Government
Finance must be adopted in the manner prescribed for state agencies in
chapter 233B of NRS.
(Added to NRS by 2001, 2304 )
DEBT MANAGEMENT COMMISSION
As used in NRS 350.011 to 350.0165 , inclusive, unless the context otherwise
requires:
1. “Commission” means a debt management commission created
pursuant to NRS 350.0115 .
2. “Special elective tax” means a tax imposed pursuant to NRS
354.59817 , 354.5982 , 387.197 ,
387.3285 or 387.3287 .
(Added to NRS by 1965, 1433; A 1993, 2655; 1995, 369, 765, 774,
1811; 1997, 550; 1999, 275 , 2541 ; 2001, 880 , 2304 )—(Substituted in revision for NRS 350.001)
1. There is hereby created in each county whose population is
400,000 or more a debt management commission, to be composed of:
(a) Three representatives of the board of county commissioners from
its membership;
(b) One representative of each governing body of the five largest
incorporated cities in the county from its membership;
(c) One representative of the board of trustees of the county
school district from its membership; and
(d) Two representatives of the public at large.
2. There is hereby created in each county whose population is less
than 400,000 a debt management commission, to be composed of one
representative of the county, one representative of the school district
and the following additional representatives:
(a) In each such county which contains more than one incorporated
city:
(1) One representative of the city in which the county seat
is located;
(2) One representative of the other incorporated cities
jointly; and
(3) One representative of the public at large.
(b) In each such county which contains one incorporated city:
(1) One representative of the incorporated city; and
(2) Two representatives of the public at large.
(c) In each such county which contains no incorporated city, one
representative of the public at large.
(d) In each such county which contains one or more general
improvement districts, one representative of the district or districts
jointly and one additional representative of the public at large.
3. In Carson City, there is hereby created a debt management
commission, to be composed of one representative of the Board of
Supervisors, one representative of the school district and three
representatives of the public at large. The representative of the Board
of Supervisors and the representative of the school district shall select
the representatives of the public at large and, for that purpose only,
constitute a quorum of the debt management commission. Members of the
commission serve for a term of 2 years beginning on January 1, or until
their successors are chosen.
4. Except as otherwise provided in subsection 1, each
representative of a single local government must be chosen by its
governing body. Each representative of two or more local governments must
be chosen by their governing bodies jointly, each governing body having
one vote. Each representative of the general improvement districts must
be chosen by their governing bodies jointly, each governing body having
one vote. Each representative of the public at large must be chosen by
the other members of the commission from residents of the county, or
Carson City, as the case may be, who have a knowledge of its financial
structure. A tie vote must be resolved by lot.
5. A person appointed as a member of the commission in a county
whose population is 100,000 or more who is not an elected officer or a
person appointed to an elective office for an unexpired term must have at
least 5 years of experience in the field of public administration, public
accounting or banking.
6. A person appointed as a member of the commission shall not have
a substantial financial interest in the ownership or negotiation of
securities issued by this State or any of its political subdivisions.
7. Except as otherwise provided in this subsection, members of the
commission or their successors must be chosen in January of each
odd-numbered year and hold office for a term of 2 years beginning January
1. The representatives of incorporated cities must be chosen after
elections are held in the cities, but before the annual meeting of the
commission in August. The term of a representative who serves pursuant to
paragraph (a), (b) or (c) of subsection 1 is coterminous with the term of
his elected office, unless the public entity that appointed him revokes
his appointment.
8. Any vacancy must be filled in the same manner as the original
choice was made for the remainder of the unexpired term.
(Added to NRS by 1965, 1433; A 1969, 332; 1971, 222, 943; 1977,
537; 1987, 1719; 1993, 2239; 1995, 765; 1999, 2528 , 2541 ; 2001, 188 , 1978 ; 2005, 123 )
1. The commission shall meet during the month of February of each
year to organize by selecting a chairman and vice chairman. In a county
whose population is 400,000 or more, the chairman must be one of the
representatives of the board of county commissioners. The county clerk is
ex officio the secretary of the commission.
2. In addition to the organizational meeting, each commission
shall meet annually in August of each year and at the call of the
chairman whenever business is presented, as provided in NRS 350.014
and 350.0145 .
3. In conjunction with the meetings required by subsections 1 and
2, the commission in a county whose population:
(a) Is 100,000 or more but less than 400,000, shall meet each
calendar quarter.
(b) Is 400,000 or more, shall meet each month.
Ê The meetings required by this subsection must be scheduled at each
annual meeting in August.
4. The appointing authority may remove a member of a commission in
a county whose population:
(a) Is 400,000 or more if the member fails to attend three
consecutive meetings or five meetings during a calendar year.
(b) Is 100,000 or more but less than 400,000 if the member fails to
attend two consecutive meetings or three meetings during a calendar year.
(c) Is less than 100,000 if the member fails to attend at least one
meeting during a calendar year.
5. Except as otherwise provided in subsection 3 of NRS 350.0115
, a majority of the members constitutes
a quorum for all purposes.
6. The governing body of the county may provide for the payment to
members of the commission who serve as representatives of the public at
large:
(a) Compensation of not more than $40, as fixed by the governing
body, for each day or portion of a day of attendance at a meeting of the
commission, not to exceed $400 paid to each such member per month.
(b) While engaged in the business of the commission, the per diem
allowance and travel expenses generally provided for officers and
employees of the county, if any.
(Added to NRS by 1965, 1433; A 1971, 943; 1977, 537; 1995, 766;
1999, 2529 , 2542 ; 2001, 187 ; 2005, 125 )
1. The commission in a county whose population is less than 45,000
may request technical assistance from the Department of Taxation to carry
out the duties of the commission. Upon such a request, the Department of
Taxation shall provide to that commission such technical assistance to
the extent that resources are available.
2. The board of county commissioners of a county whose population
is 45,000 or more shall provide the commission in that county with such
staff as is necessary to carry out the duties of the commission. The
staff provided to the commission pursuant to this subsection shall
provide such technical assistance to the commission as the commission
requires, except the staff shall not render an opinion on the merits of
any proposal or other matter before the commission.
(Added to NRS by 1999, 2541 ; A 2001, 1979 )—(Substituted in revision for NRS
350.0033)
1. Except as otherwise provided in this section, on or before
August 1 of each year, the governing body of a municipality which
proposes to issue or has outstanding any general obligation debt, other
general obligations or special obligations, or which levies or proposes
to levy any special elective tax, shall submit to the Department of
Taxation and the commission:
(a) A complete statement of current general obligation debt and
special elective taxes, and a report of current debt and special
assessments and retirement schedules, in the detail and form established
by the Committee on Local Government Finance.
(b) A complete statement, in the detail and form established by the
Committee on Local Government Finance, of general obligation debt and
special elective taxes contemplated to be submitted to the commission
during the fiscal year.
(c) A written statement of the debt management policy of the
municipality, which must include, without limitation:
(1) A discussion of its ability to afford existing general
obligation debt, authorized future general obligation debt and proposed
future general obligation debt;
(2) A discussion of its capacity to incur authorized and
proposed future general obligation debt without exceeding the applicable
debt limit;
(3) A discussion of its general obligation debt that is
payable from property taxes per capita as compared with such debt of
other municipalities in this State;
(4) A discussion of its general obligation debt that is
payable from property taxes as a percentage of assessed valuation of all
taxable property within the boundaries of the municipality;
(5) Policy regarding the manner in which the municipality
expects to sell its debt;
(6) A discussion of its sources of money projected to be
available to pay existing general obligation debt, authorized future
general obligation debt and proposed future general obligation debt; and
(7) A discussion of its operational costs and revenue
sources, for the ensuing 5 fiscal years, associated with each project
included in its plan for capital improvement submitted pursuant to
paragraph (d), if those costs and revenues are expected to affect the
property tax rate.
(d) Either:
(1) Its plan for capital improvement for the ensuing 5
fiscal years, which must include any contemplated issuance of general
obligation debt during this period and the sources of money projected to
be available to pay the debt; or
(2) A statement indicating that no changes are contemplated
in its plan for capital improvement for the ensuing 5 fiscal years.
(e) A statement containing the name, title, mailing address and
telephone number of the chief financial officer of the municipality.
2. The governing body of a municipality may combine a statement or
plan required by subsection 1 with the corresponding statement or plan of
another municipality if both municipalities have the same governing body
or the governing bodies of both municipalities agree to such a
combination.
3. Except as otherwise provided in subsection 4, the governing
body of each municipality shall update all statements and plans required
by subsection 1 not less frequently than once each fiscal year.
4. In a county whose population is 100,000 or more, the governing
body of each municipality shall update all statements and plans required
by subsection 1 not less often than once each fiscal year and not more
often than twice each fiscal year, except that a municipality may update
a statement or plan required by subsection 1 more often than twice each
fiscal year:
(a) If the governing body determines, by a two-thirds vote, that an
emergency requires that a statement or plan be updated;
(b) To include an item related to:
(1) An installment purchase that does not count against a
debt limit; or
(2) An obligation for which no additional property tax is
expected;
(c) To update the purpose of a special elective tax without
changing the rate of the special elective tax; or
(d) To comply with the requirements of subsection 5 of NRS 268.625
or subsection 1 of NRS 350.091 .
5. The provisions of this section do not apply to the Reno-Tahoe
Airport Authority so long as the Authority does not have any general
obligation bonds outstanding and does not issue or propose to issue any
such bonds. At least 30 days before each annual meeting of the
commission, the Authority shall submit to the Department of Taxation a
written statement regarding whether the Authority is planning to propose
to issue any general obligation bonds before the next following annual
meeting of the commission.
(Added to NRS by 1971, 942; A 1977, 538; 1993, 2656; 1995, 147,
308, 766; 2001, 880 , 2304 ; 2005, 125 )
1. Before a municipality may submit to the commission a proposal
that will result in an increase in the rate of property taxes, the
municipality shall:
(a) Determine whether there is an affected governmental entity; and
(b) If there is an affected governmental entity, provide written
notification to the affected governmental entity.
2. A notification sent pursuant to subsection 1 must include,
without limitation, a description of:
(a) The proposal and the estimated amount the proposal would
increase property taxes; and
(b) The potential effect of the increase on the entity.
3. The governing body of an entity that receives a notification
pursuant to subsection 1 shall, by resolution, approve or object to the
proposal described in the notice. If the entity approves the proposal,
the entity must state in the resolution approving the proposal that the
entity has no intent to levy property taxes which, if combined with the
increase proposed in the proposal, would cause the combined property tax
rate for the area containing the municipality and the entity to exceed
the limitation on property taxes set forth in NRS 361.453 .
4. If an entity objects to a proposal pursuant to subsection 3,
the municipality which provided notice pursuant to subsection 1 shall
provide the commission with notification in writing of the objection and
the entity’s reasons for objecting when submitting the proposal to the
commission pursuant to NRS 350.014 .
5. If the commission receives a proposal to which an objection has
been raised pursuant to subsection 3, the commission shall resolve any
conflict between the municipality and the entity over the use of the
remaining allowable increase in property taxes and determine whether to
approve, in whole or in part, or reject the increase in property taxes
set forth in the proposal.
6. In resolving a conflict pursuant to subsection 5, the
commission may impose:
(a) A condition or provision described in subsection 2 of NRS
350.0145 ; and
(b) A condition that:
(1) The amount of the general obligation debt proposed to be
imposed must be reduced;
(2) The rate of the special elective tax must be reduced; or
(3) Both subparagraphs (1) and (2).
7. The commission may establish:
(a) A method for resolving conflicts over the unlevied amount of
property taxes that may be levied pursuant to NRS 354.59811 ;
(b) A method for determining the highest and best use of the
unlevied amount of property taxes that may be levied pursuant to NRS
354.59811 , which must be based upon a
comparison of the public needs to be served by the proceeds from the
proposed debt or tax levy in a proposal submitted pursuant to NRS 350.014
and the public needs to be served by
other possible debts or tax levies by other municipalities whose
tax-levying powers overlap; and
(c) A procedure for allowing a municipality that does not levy the
maximum amount of property taxes which it may levy pursuant to NRS
354.59811 to reserve a percentage of
the remaining allowable increase of property taxes for use in the future
and a procedure for determining whether to grant such a reservation. If
established, such procedures must:
(1) Allow all municipalities whose tax-levying powers may be
affected by such a reservation to enter objections to such a reservation;
and
(2) Provide a method for resolving conflicts over the
remaining allowable increase of property taxes between municipalities
whose tax-levying powers overlap, which must be based upon the highest
and best use for the remaining allowable increase of property taxes.
8. This section does not apply to any proposal that is not
expected to result in an increase in the rate of property taxes in any
jurisdiction.
9. As used in this section:
(a) “Affected governmental entity” means a governmental entity:
(1) That has territory which overlaps the territory of the
municipality proposing the special elective tax or general obligation
debt;
(2) That is currently not levying the maximum rate of
property taxes which it may levy pursuant to NRS 354.59811 ; and
(3) For which the total combined tax rate levied on the
overlapping territory would exceed the limit set forth in NRS 361.453
if the current combined tax rate levied
on the overlapping territory is added to:
(I) The tax rate projected for the special elective
tax or general obligation debt being proposed by the municipality; and
(II) The unlevied amount of property taxes that
currently may be levied by the governmental entity pursuant to NRS
354.59811 .
(b) “Remaining allowable increase of property taxes” means the
difference between the tax rate allowed for a municipality in the current
fiscal year pursuant to NRS 354.59811
minus the tax rate levied by the municipality in the current fiscal year.
(Added to NRS by 2001, 878 )
1. Before any proposal to incur a general obligation debt or levy
a special elective tax may be submitted to the electors of a
municipality, before any issuance of general obligation bonds pursuant to
subsection 4 of NRS 350.020 , before
entering into an installment-purchase agreement with a term of more than
10 years or, before any other formal action may be taken preliminary to
the incurrence of any general obligation debt, the proposed incurrence or
levy must receive the favorable vote of two-thirds of the members of the
commission of each county in which the municipality is situated.
2. Before the board of trustees of a district organized or
reorganized pursuant to chapter 318 of NRS
whose population within its boundaries is less than 5,000 incurs a
medium-term obligation or otherwise borrows money or issues securities to
evidence such borrowing, other than securities representing a general
obligation debt or installment-purchase agreements with a term of 10
years or less, the proposed borrowing or issuing of securities must
receive the favorable vote of a majority of the members of the commission
of each county in which the district is situated.
3. When any municipality other than a general improvement district
whose population within its boundaries is less than 5,000 issues any
special obligations, it shall so notify in its annual report the
commission of each county in which any of its territory is situated.
4. The commission shall not approve any proposal submitted to it
pursuant to this section by a municipality:
(a) Which, if the proposal is for the financing of a capital
improvement, is not included in its plan for capital improvement
submitted pursuant to NRS 350.013 , if
such a plan is required to be submitted;
(b) If, based upon:
(1) Estimates of the amount of tax revenue from property
taxes needed for the special elective tax, or to repay the general
obligation debt, and the dates that revenue will be needed, as provided
by the municipality;
(2) Estimates of the assessed valuation of the municipality
for each of the years in which tax revenue is needed, as provided by the
municipality;
(3) The amount of any other required levies of property
taxes, as shown on the most recently filed final budgets of each entity
authorized to levy property taxes on any property within the municipality
submitting the proposal; and
(4) Any other factor the municipality discloses to the
commission,
Ê the proposal would result in a combined property tax rate in any of the
overlapping entities within the county which exceeds the limit provided
in NRS 361.453 , unless the proposal
also includes an agreement which complies with NRS 361.457 and which is approved by the governing bodies
of all affected municipalities within the area as to how the combined
property tax rates will be brought into compliance with the statutory
limitation or unless the commission adopts a plan that is approved by the
Executive Director of the Department of Taxation pursuant to which the
combined property tax rate will be in compliance with the statutory
limitation; or
(c) If, based upon the factors listed in subparagraphs (1) to (4),
inclusive, of paragraph (b), the proposal will affect the ability of an
affected governmental entity to levy the maximum amount of property taxes
that it may levy pursuant to NRS 354.59811 , unless:
(1) The proposal includes a resolution approving the
proposal pursuant to subsection 3 of NRS 350.0135 from each affected governmental entity whose
ability to levy property taxes will be affected by the commission’s
approval of the proposal; or
(2) The commission has resolved all conflicts between the
municipality and all affected governmental entities and has approved the
increase in property taxes resulting from the proposal pursuant to NRS
350.0135 .
5. Except as otherwise provided in subsection 6, if general
obligation debt is to be incurred more than 36 months after the approval
of that debt by the commission, the governing body of the municipality
shall obtain additional approval of the commission before incurring the
general obligation debt. The commission shall only approve a proposal
that is submitted pursuant to this subsection if, based on the
information set forth in paragraph (b) of subsection 4 that is accurate
as of the date on which the governing body submits, pursuant to this
subsection, its request for approval to the commission:
(a) Incurrence of the general obligation debt will not result in a
combined property tax rate in any of the overlapping entities within the
county which exceeds the limit provided in NRS 361.453 ;
(b) The proposal includes an agreement approved by the governing
bodies of all affected municipalities within the area as to how the
combined tax rates will be brought into compliance with the statutory
limitation; or
(c) The commission adopts a plan that is approved by the Executive
Director of the Department of Taxation pursuant to which the combined
property tax rate will be in compliance with the statutory limitation.
Ê The approval of the commission pursuant to this subsection is effective
for 18 months. The governing body of the municipality may renew that
approval for successive periods of 18 months by filing an application for
renewal with the commission. Such an application must be accompanied by
the information set forth in paragraph (b) of subsection 4 that is
accurate as of the date the governing body files the application for
renewal.
6. The commission may not approve a proposal pursuant to
subsection 5 which, based upon the factors listed in subparagraphs (1) to
(4), inclusive, of paragraph (b) of subsection 4, will affect the ability
of an affected governmental entity to levy the maximum amount of property
taxes that it may levy pursuant to NRS 354.59811 , unless:
(a) The proposal includes a resolution approving the proposal
pursuant to subsection 3 of NRS 350.0135 from each affected governmental entity whose
ability to levy property taxes will be affected by the commission’s
approval of the proposal; or
(b) The commission has resolved all conflicts between the
municipality and all affected governmental entities and has approved the
increase in property taxes resulting from the proposal pursuant to NRS
350.0135 .
7. As used in this section, “affected governmental entity” has the
meaning ascribed to it in subsection 9 of NRS 350.0135 .
(Added to NRS by 1965, 1434; A 1971, 524; 1977, 538; 1981, 943;
1991, 973; 1993, 2656; 1995, 309, 768; 1997, 2463; 1999, 3222 ; 2001, 881 , 2306 ; 2003, 162 )
1. The governing body of the municipality proposing to incur
general obligation debt, to enter an installment-purchase agreement with
a term of more than 10 years or to levy a special elective tax and the
board of trustees of a general improvement district whose population
within its boundaries is less than 5,000 who proposes to issue a
medium-term obligation or otherwise borrow money and issue any securities
other than securities representing a general obligation debt or
installment-purchase agreements with terms of 10 years or less shall
notify the secretary of each appropriate commission, and shall submit a
statement of its proposal in sufficient number of copies for each member
of the commission. The secretary, with the approval of the chairman,
shall, within 10 days, give notice of a meeting, in the manner required
by chapter 241 of NRS, to be held not more
than 20 days thereafter. He shall provide a copy of the proposal to each
member with the notice of the meeting and mail notice of the meeting to
the chief financial officer of each municipality in the county which has
complied with subsection 1 of NRS 350.013 within the past year.
2. The commission may grant a conditional or provisional approval
of such proposal. Such conditions or provisions are limited to:
(a) The scheduling of:
(1) The issuance and retirement of securities, if the
proposal is to incur general obligation debt; or
(2) The imposition of the tax, if the proposal is to levy a
special elective tax; and
(b) If the proposal would result in a combined property tax rate in
any of the overlapping entities within the county which exceeds 90
percent of the limit provided in NRS 361.453 , a condition requiring a reduction in the
amount of the proposed debt, installment-purchase agreement or special
elective tax.
3. If the proposal is from a municipality, the commission may not
approve any portion of the proposal that is not included in the statement
filed pursuant to paragraph (b) of subsection 1 of NRS 350.013 , as updated pursuant to subsection 3 or 4 of
NRS 350.013 .
4. The commission may adjourn a meeting called to consider a
particular proposal no more than once, for no more than 60 days, except
that the commission must approve or disapprove a proposal at least 30
days before the date on which the governing body that submitted the
proposal is required to provide the proposal to the county clerk or city
clerk pursuant to NRS 293.481 .
Notification of the approval or disapproval of its proposal must be sent
to the governing body within 3 days after the meeting.
(Added to NRS by 1965, 1434; A 1971, 944; 1977, 538; 1981, 943;
1991, 973; 1993, 2657; 1995, 770; 2001, 883 , 2308 ; 2005, 127 )
1. In determining whether to approve, conditionally or
provisionally approve, or disapprove a proposal to incur debt, to enter
an installment-purchase agreement with a term of more than 10 years or to
levy a special elective tax, the commission shall not, except as
otherwise provided in paragraph (d) and NRS 350.0135 , initiate a determination as to whether the
proposed debt, installment-purchase agreement or special elective tax is
sought to accomplish a public purpose or to satisfy a public need. The
commission shall consider, but is not limited to, the following criteria:
(a) If the proposal is to incur debt, the amount of debt
outstanding on the part of the municipality proposing to incur the debt.
(b) The effect of the tax levy required for debt service on the
proposed debt or to repay an installment-purchase agreement with a term
of more than 10 years, or of the proposed levy of a special elective tax,
upon the ability of the municipality proposing to incur the general
obligation debt, enter the installment-purchase agreement or levy the
special elective tax and of other municipalities to raise revenue for
operating purposes.
(c) The anticipated need for other incurrences of debt,
installment-purchase agreements or levies of special elective taxes by
the municipality proposing to incur the debt, enter the
installment-purchase agreement or levy the special elective tax and other
municipalities whose tax-levying powers overlap, as shown by the county
or regional master plan, if any, and by other available information.
(d) If the information set forth in paragraph (b) of subsection 4
of NRS 350.014 indicates that the
proposal would result in a combined property tax rate in any of the
overlapping entities within the county which exceeds the specified
percentage, pursuant to subsection 1 of NRS 350.0155 , of the limit provided in NRS 361.453 :
(1) The public need to be served by the proceeds from the
proposed debt or tax levy in accordance with the priorities established
pursuant to subsection 2 of NRS 350.0155 ; and
(2) A comparison of that public need and other public needs
that appear on the statements of current and contemplated general
obligation debt and special elective taxes submitted pursuant to
paragraphs (a) and (b) of subsection 1 of NRS 350.013 that may affect the combined property tax rate
in any of the overlapping entities within the county.
2. The commission may make reasonable requests from a municipality
for information relating to the criteria described in paragraphs (a) to
(d), inclusive, of subsection 1. A municipality shall use its best
efforts to comply with information requests from the commission in a
timely manner.
3. If the commission approves the proposal, the amount received
from the sale of the general obligation debt or from the special elective
tax may be expended only for the purposes described in the proposal.
(Added to NRS by 1967, 1386; A 1977, 539; 1993, 2658; 1995, 770,
1959; 2001, 884 , 2309 )—(Substituted in revision for NRS
350.0051)
015 . At the annual meeting in August required by
NRS 350.012 , the commission shall:
1. Specify a percentage, which must not be less than 75 percent,
for the purposes of paragraph (d) of subsection 1 of NRS 350.015 ; and
2. Establish priorities among essential and nonessential
facilities and services for the purposes of paragraph (d) of subsection 1
of NRS 350.015 . Facilities and services
relating to public safety, education and health must be considered
essential facilities and services, and all other facilities and services
must be considered nonessential facilities and services.
(Added to NRS by 2001, 878 ; A 2005, 128 )
The commission has the power, with the consent of
the municipality which proposes to incur a debt or levy a special
elective tax, to contract for or employ accountants and financial
consultants to evaluate any proposal which it must approve or disapprove.
The cost of such services must be paid by the consenting municipality
which proposes to incur the debt or levy the special elective tax.
(Added to NRS by 1971, 942; A 1977, 539; 1993, 2658; 1995,
771)—(Substituted in revision for NRS 350.0052)
011 to 350.0165 , inclusive. The provisions of NRS 350.011
to 350.0165 , inclusive, do not apply to:
1. Any general obligation debt incurred or special elective tax
levied before July 1, 1995;
2. Any general obligation debt or special elective tax approved at
an election held before July 1, 1995, whether or not the debt is incurred
or tax is levied before that date;
3. Any general obligation debt authorized to be incurred, or
special elective tax authorized to be levied, by a special act adopted
and approved before July 1, 1995;
4. Any debt incurred for the purpose of refunding any outstanding
general obligation debt; and
5. Any medium-term obligation, except a medium-term obligation
issued after July 1, 2001, by a general improvement district whose
population within its boundaries is less than 5,000.
(Added to NRS by 1965, 1434; A 1995, 771; 2001, 2310 )—(Substituted in revision for NRS 350.006)
PROPOSALS TO ISSUE OBLIGATIONS
1. Except as otherwise provided by subsections 3 and 4, if a
municipality proposes to issue or incur general obligations, the proposal
must be submitted to the electors of the municipality at a special
election called for that purpose or the next general municipal election
or general state election.
2. Such a special election may be held:
(a) At any time, including, without limitation, on the date of a
primary municipal election or a primary state election, if the governing
body of the municipality determines, by a unanimous vote, that an
emergency exists; or
(b) On the first Tuesday after the first Monday in June of an
odd-numbered year.
Ê The determination made by the governing body is conclusive unless it is
shown that the governing body acted with fraud or a gross abuse of
discretion. An action to challenge the determination made by the
governing body must be commenced within 15 days after the governing
body’s determination is final. As used in this subsection, “emergency”
means any occurrence or combination of occurrences which requires
immediate action by the governing body of the municipality to prevent or
mitigate a substantial financial loss to the municipality or to enable
the governing body to provide an essential service to the residents of
the municipality.
3. If payment of a general obligation of the municipality is
additionally secured by a pledge of gross or net revenue of a project to
be financed by its issue, and the governing body determines, by an
affirmative vote of two-thirds of the members elected to the governing
body, that the pledged revenue will at least equal the amount required in
each year for the payment of interest and principal, without regard to
any option reserved by the municipality for early redemption, the
municipality may, after a public hearing, incur this general obligation
without an election unless, within 90 days after publication of a
resolution of intent to issue the bonds, a petition is presented to the
governing body signed by not less than 5 percent of the registered voters
of the municipality. Any member elected to the governing body whose
authority to vote is limited by charter, statute or otherwise may vote on
the determination required to be made by the governing body pursuant to
this subsection. The determination by the governing body becomes
conclusive on the last day for filing the petition. For the purpose of
this subsection, the number of registered voters must be determined as of
the close of registration for the last preceding general election. The
resolution of intent need not be published in full, but the publication
must include the amount of the obligation and the purpose for which it is
to be incurred. Notice of the public hearing must be published at least
10 days before the day of the hearing. The publications must be made once
in a newspaper of general circulation in the municipality. When
published, the notice of the public hearing must be at least as large as
5 inches high by 4 inches wide.
4. The board of trustees of a school district may issue general
obligation bonds which are not expected to result in an increase in the
existing property tax levy for the payment of bonds of the school
district without holding an election for each issuance of the bonds if
the qualified electors approve a question submitted by the board of
trustees that authorizes issuance of bonds for a period of 10 years after
the date of approval by the voters. If the question is approved, the
board of trustees of the school district may issue the bonds for a period
of 10 years after the date of approval by the voters, after obtaining the
approval of the debt management commission in the county in which the
school district is located and, in a county whose population is 100,000
or more, the approval of the oversight panel for school facilities
established pursuant to NRS 393.092 in
that county, if the board of trustees of the school district finds that
the existing tax for debt service will at least equal the amount required
to pay the principal and interest on the outstanding general obligations
of the school district and the general obligations proposed to be issued.
The finding made by the board of trustees is conclusive in the absence of
fraud or gross abuse of discretion. As used in this subsection, “general
obligations” does not include medium-term obligations issued pursuant to
NRS 350.087 to 350.095 , inclusive.
5. At the time of issuance of bonds authorized pursuant to
subsection 4, the board of trustees shall establish a reserve account in
its debt service fund for payment of the outstanding bonds of the school
district. The reserve account must be established and maintained in an
amount at least equal to the lesser of the amount of principal and
interest payments due on all of the outstanding bonds of the school
district in the next fiscal year or 10 percent of the outstanding
principal amount of the outstanding bonds of the school district. If the
amount in the reserve account falls below the amount required by this
subsection:
(a) The board of trustees shall not issue additional bonds pursuant
to subsection 4 until the reserve account is restored to the level
required by this subsection; and
(b) The board of trustees shall apply all of the taxes levied by
the school district for payment of bonds of the school district that are
not needed for payment of the principal and interest on bonds of the
school district in the current fiscal year to restore the reserve account
to the level required pursuant to this subsection.
6. A municipality may issue special or medium-term obligations
without an election.
[Part 2:70:1937; A 1956, 219]—(NRS A 1959, 594; 1969, 1589; 1975,
862; 1981, 943; 1993, 1066; 1995, 217, 1812, 1960, 1961; 1997, 551, 1209,
2464, 2826; 1999, 610 , 611 , 1078 , 3220 , 3222 , 3226 , 3228 ; 2001, 232 , 1348 , 2310 ; 2003, 45 )
1. The Committee on Local Government Finance shall annually
provide to each city clerk, county clerk and district attorney:
(a) Forms for submitting a ballot question to the electors of a
municipality for the issuance or incurrence of general obligations as
provided in subsection 1 of NRS 350.020 ; and
(b) Examples of past ballot questions for the issuance or
incurrence of general obligations.
2. The city clerk, county clerk or district attorney may make
these forms and examples available to the general public.
(Added to NRS by 1999, 1078 )
A proposal to issue or incur
general obligations pursuant to NRS 350.020 and a proposal to levy an additional tax ad
valorem pursuant to NRS 354.5982 for a
purpose related to the purpose for which the general obligations are
issued or incurred may be combined into a single proposition.
(Added to NRS by 1993, 65)
1. Whenever a municipality by ordinance or resolution, as the
governing body may determine, has ordered that a proposal to issue or
incur general obligations be submitted to the voters at a special
election or the next general municipal election or general state
election, the clerk shall cause notice of the election to be published in
a newspaper printed in and having a general circulation in the
municipality once in each calendar week for 2 successive calendar weeks
by two weekly insertions a week apart, the first publication to be not
more than 30 days nor less than 22 days next preceding the date of the
election.
2. If no newspaper is printed in the municipality, publication of
the notice of election must be made in a newspaper printed in the State
of Nevada and having a general circulation in the municipality.
(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94; 1981, 944;
1993, 1067; 1999, 1081 )
1. The ballot question for a proposal submitted to the electors of
a municipality pursuant to subsection 1 of NRS 350.020 must contain the principal amount of the
general obligations to be issued or incurred, the purpose of the issuance
or incurrence of the general obligations and an estimate established by
the governing body of:
(a) The duration of the levy of property tax that will be used to
pay the general obligations; and
(b) The average annual increase, if any, in the amount of property
taxes that an owner of a new home with a fair market value of $100,000
will pay for debt service on the general obligations to be issued or
incurred.
2. Except as otherwise provided in subsection 4, the sample ballot
required to be mailed pursuant to NRS 293.565 or 293C.530 and the notice of election must contain:
(a) The time and places of holding the election.
(b) The hours during the day in which the polls will be open, which
must be the same as provided for general elections.
(c) The ballot question.
(d) The maximum amount of the obligations, including the
anticipated interest, separately stating the total principal, the total
anticipated interest and the anticipated interest rate.
(e) An estimate of the range of property tax rates stated in
dollars and cents per $100 of assessed value necessary to provide for
debt service upon the obligations for the dates when they are to be
redeemed. The municipality shall, for each such date, furnish an estimate
of the assessed value of the property against which the obligations are
to be issued or incurred, and the governing body shall estimate the tax
rate based upon the assessed value of the property as given in the
assessor’s estimates.
3. If an operating or maintenance rate is proposed in conjunction
with the question to issue obligations, the questions may be combined,
but the sample ballot and notice of election must each state the tax rate
required for the obligations separately from the rate proposed for
operation and maintenance.
4. Any election called pursuant to NRS 350.020 to 350.070 ,
inclusive, may be consolidated with a primary or general municipal
election or a primary or general state election. The notice of election
need not set forth the places of holding the election, but may instead
state that the places of holding the election will be the same as those
provided for the election with which it is consolidated.
5. If the election is a special election, the clerk shall cause
notice of the close of registration to be published in a newspaper
printed in and having a general circulation in the municipality once in
each calendar week for 2 successive calendar weeks next preceding the
close of registration for the election.
(Added to NRS by 1965, 138; A 1969, 1590; 1971, 94; 1981, 945;
1983, 733; 1987, 23, 1469; 1993, 1067, 1419, 2659, 2661; 1995, 718; 1997,
1585, 3477; 1999, 679 , 1081 )
1. In addition to any requirements imposed pursuant to NRS 350.024
, any sample ballot required to be
mailed pursuant to NRS 293.565 or
293C.530 and any notice of election,
for an election that includes a proposal for the issuance by any
municipality of any bonds or other securities, including an election that
is not called pursuant to NRS 350.020
to 350.070 , inclusive, must contain an
estimate of the annual cost to operate, maintain and repair any
buildings, structures or other facilities or improvements to be
constructed or acquired with the proceeds of the bonds or other
securities.
2. For the purposes of this section, “municipality” has the
meaning ascribed to it in NRS 350.538 .
(Added to NRS by 1993, 1418; A 1997, 3478)
1. If the election is not consolidated with another election, the
municipality shall pay the expenses of conducting it. Any proposal to
issue or incur general obligations may be submitted on the same ballot as
otherwise used at a primary or general municipal election or primary or
general state election or may be submitted by separate ballot, as the
governing body may determine.
2. No defect in the statement of such a proposal other than in the
statement of the maximum amount to be authorized invalidates the proposal.
3. The qualifications of voters, the manner of registration and
voting, and the manner of counting the votes cast are governed by the
general election laws insofar as those laws can reasonably be made
applicable.
[Part 3:70:1937; A 1953, 322]—(NRS A 1971, 95; 1981, 945; 1993,
1068)
1. If a majority of the electors voting on the question is in
favor of the proposal submitted, the proposal is carried, and the proper
officers of the municipality shall proceed to issue or incur the
obligations proposed.
2. If the majority of the electors voting on the question is
against the proposal submitted, the proposal fails, and the proper
officers of the municipality shall proceed no further except to certify
the result of the election to the proper officers of the governing body.
3. Except as otherwise specifically provided in NRS 350.030 , any informality, omission or defect in the
giving of any notice or the conduct of the election does not affect the
result of the election if it can be ascertained with reasonable certainty
whether the proposal was approved or rejected by a majority of the
registered voters voting on the question.
[Part 4:70:1937; A 1953, 322; 1955, 162]—(NRS A 1959, 486; 1971,
97; 1981, 945)
MEDIUM-TERM OBLIGATIONS
1. If the public interest requires a medium-term obligation or
installment-purchase agreement, the governing body of any local
government, by a resolution adopted by two-thirds of its members, may
authorize a medium-term obligation or installment-purchase agreement. For
the purposes of the issuance of a medium-term obligation pursuant to NRS
280.266 , a metropolitan police
committee on fiscal affairs shall be deemed the governing body of a local
government.
2. The resolution must contain:
(a) A finding by the governing body that the public interest
requires the medium-term obligation or installment-purchase agreement;
(b) A statement of the facts upon which the finding required
pursuant to paragraph (a) is based;
(c) A statement that identifies:
(1) Each source of revenue of the local government that is
anticipated to be used to repay the medium-term obligation or
installment-purchase agreement; and
(2) The dollar amount that is anticipated to be available to
repay the medium-term obligation or installment-purchase agreement from
each such source; and
(d) If the resolution is for an installment-purchase agreement with
a term of more than 10 years:
(1) A statement comparing the cost of installment-purchase
financing with other available methods of financing, including, without
limitation, financing with general obligation bonds or revenue bonds; and
(2) If such statement concludes that installment-purchase
financing is more expensive than other available methods of financing, a
statement explaining the reasons for choosing installment-purchase
financing instead of a less expensive alternative.
3. Except as otherwise provided in subsection 4, before the
adoption of any such resolution, the governing body shall publish notice
of its intention to act thereon in a newspaper of general circulation for
at least one publication. No vote may be taken upon the resolution until
10 days after the publication of the notice. The cost of publication of
the notice required of an entity is a proper charge against its general
fund.
4. If such a resolution will be adopted by a metropolitan police
committee on fiscal affairs, the sheriff of the county in which the
metropolitan police department is located shall publish the notice
required pursuant to subsection 3.
(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 275 ; 2001, 2312 )
Except as otherwise provided
in NRS 280.266 and 496.155 :
1. Upon the adoption by a local government of a resolution for a
medium-term obligation or installment-purchase agreement, as provided in
NRS 350.087 , a certified copy thereof
must be forwarded to the Executive Director of the Department of
Taxation. As soon as is practicable, the Executive Director of the
Department of Taxation shall, after consideration of the tax structure of
the local government concerned, the probable ability of the local
government to repay the requested medium-term obligation or
installment-purchase agreement and the compliance of the local government
with the applicable provisions of law, including, without limitation, the
provisions of chapter 354 of NRS, approve or
disapprove the resolution in writing to the governing board. No such
resolution is effective until approved by the Executive Director of the
Department of Taxation. The written approval of the Executive Director of
the Department of Taxation must be recorded in the minutes of the
governing board.
2. If the Executive Director of the Department of Taxation does
not approve the resolution for the medium-term obligation or
installment-purchase agreement, the governing board of the local
government may appeal the Executive Director’s decision to the Nevada Tax
Commission.
(Added to NRS by 1995, 1810; A 1997, 1295; 1999, 276 ; 2001, 2312 )
1. Whenever the governing body of any local government is
authorized to enter into a medium-term obligation or installment-purchase
agreement as provided in NRS 280.266 or
350.089 that is intended to finance a
capital project, the governing body shall update its plan for capital
improvement in the same manner as is required for general obligation debt
pursuant to NRS 350.013 .
2. Whenever the governing body of any local government is
authorized to enter into a medium-term obligation as provided in NRS
350.089 , the governing body may issue,
as evidence thereof, negotiable notes or medium-term negotiable bonds
that, except as otherwise provided in subsection 5 of NRS 496.155 :
(a) Must mature not later than 10 years after the date of issuance;
(b) Must bear interest at a rate or rates which do not exceed by
more than 3 percent the Index of Twenty Bonds which was most recently
published before the bids are received or a negotiated offer is accepted;
and
(c) May, at the option of the local government, contain a provision
which allows redemption of the notes or bonds before maturity, upon such
terms as the governing body determines.
3. Whenever the governing body of any local government is
authorized to enter into an installment-purchase agreement as provided in
NRS 280.266 or 350.089 , the governing body may issue, as evidence
thereof, an installment-purchase agreement, lease or other evidence of a
transaction described in NRS 350.800 .
An installment-purchase agreement, lease or other evidence of a
transaction described in NRS 350.800
issued pursuant to this subsection:
(a) Must have a term that is 30 years or less;
(b) Must bear interest at a rate or rates that do not exceed by
more than 3 percent the Index of Revenue Bonds which was most recently
published before the local government enters into the
installment-purchase agreement; and
(c) May, at the option of the local government, contain a provision
that allows prepayment of the purchase price upon such terms as are
provided in the agreement.
4. If the term of the medium-term obligation or
installment-purchase agreement is more than 5 years, the weighted average
term of the medium-term obligation or installment-purchase agreement may
not exceed the estimated weighted average useful life of the assets being
financed with the medium-term obligation or installment-purchase
agreement.
5. For the purposes of subsection 4, the Committee on Local
Government Finance may adopt regulations that provide guidelines for the
useful life of various types of assets and for calculation of the
weighted average useful life of assets.
(Added to NRS by 1995, 1810; A 1997, 1296; 1999, 276 ; 2001, 2313 )
1. After a medium-term obligation has been authorized as provided
in NRS 350.089 and if, in the judgment
of the governing board of the local government, the fiscal affairs of the
local government can be carried on without impairment and there is
sufficient money in the general fund or a surplus in any other fund, with
the exception of the bond interest and redemption fund, of the local
government, the governing board may transfer from the general fund or
from the surplus appearing in any fund, with the exception of the bond
interest and redemption fund, money sufficient to meet the purpose of the
medium-term obligation.
2. When such a transfer is made, the governing board of the local
government shall comply with the provisions of NRS 350.095 , and when the special tax is thereafter
collected, the amount so collected must be placed immediately in the fund
from which the loan was made.
3. In cases where the fund from which the loan was made, at the
time of the transfer of funds therefrom, contains a surplus that in the
judgment of the Executive Director of the Department of Taxation is or
will not be needed for the purposes of the fund in the ordinary course of
events, the special tax need not be levied, collected and placed in the
fund from which the loan was made, but the transfer shall be deemed
refunded for all purposes of NRS 350.087 to 350.095 ,
inclusive.
(Added to NRS by 1995, 1811; A 1999, 277 ; 2001, 2314 )
1. At the first tax levy following the creation of any medium-term
indebtedness, the governing board of any local government shall, if
necessary, levy a tax sufficient to pay the medium-term indebtedness. The
tax must be designated “County of ................ Special Tax,” “City of
................ Special Tax,” “Town of ................ Special Tax,”
“................ School District Special Tax,” “................
Agricultural Association Special Tax,” or “................ District
Special Tax,” as the case may be, the proceeds of which must be placed in
a medium-term debt service fund in the treasury of the county or city, or
in a medium-term debt service fund in the county treasury in the cases of
towns, school districts, irrigation districts, special districts or
agricultural associations, to be used solely to redeem the medium-term
indebtedness for which the tax is levied.
2. The treasurer of any county is authorized, upon receipt of a
written resolution of the governing board of any local government for
which a special tax fund is maintained, to transfer the money remaining
in the medium-term debt service fund of that local government to the
general fund of that local government after payment in full of the
indebtedness and the interest thereon.
(Added to NRS by 1995, 1811)
SALE OF BONDS BY COMPETITIVE BID OR NEGOTIATED SALE
As used in NRS 350.105 to 350.195 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 350.115 to 350.145
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1995, 1018)
“Bond” means any evidence of
borrowing by a municipality that is issued pursuant to the provisions of
this chapter or chapter 244 , 244A , 268 , 269 , 271 , 318 or 387 of NRS, whether
general or special obligations, including, without limitation, bonds,
notes, debentures, warrants and certificates.
(Added to NRS by 1995, 1018; A 2001, 2314 )
“Competitive bid” means
the procedure for the sale of bonds by a municipality to one or more
purchasers determined by the municipality to have offered the best price
and interest rate.
(Added to NRS by 1995, 1018)
“Financial adviser”
means a financial consulting firm whose employees have experience in
advising municipalities relating to the issuance of debt instruments, and
which, except for its consulting relationship with the municipality, is
not under the control of the municipality.
(Added to NRS by 1995, 1019)
“Negotiated sale” means
the procedure for the sale of bonds by a municipality to one or more
purchasers selected pursuant to NRS 350.175 and 350.185
upon such terms as are agreed upon after the selection of the purchaser.
(Added to NRS by 1995, 1019)
1. Except as otherwise provided in subsection 2, a municipality
shall sell the bonds it issues by competitive bid if the credit rating
for the bonds or any other bonds of the municipality with the same
security, determined without regard to insurance for the bonds or any
other independent enhancement of credit, is rated by a nationally
recognized rating service as “A-,” “A,” “AA,” “AAA,” or their
equivalents, 90 days before and on the day the bonds are sold and:
(a) The bonds are general obligation bonds;
(b) The primary security for the bonds is an excise tax; or
(c) The bonds are issued pursuant to chapter 271 of NRS and are secured by a pledge of the taxing
power and the general fund of the municipality.
2. The provisions of subsection 1 and NRS 350.175 and 350.185
do not apply to:
(a) Any bond which is issued with a variable rate of interest.
(b) A bond issue whose principal amount is $1,000,000 or less.
(c) A bond issue with a term of 3 years or less.
(d) A bond issue for which an invitation for competitive bids was
issued and for which no bids were received or all bids were rejected.
(e) Leases, contracts for purchase by installment and certificates
of participation if the obligations of the municipality thereunder will
terminate when the municipality fails to appropriate money to pay that
obligation for the next fiscal year.
(f) Economic development revenue bonds issued pursuant to the city
economic development revenue bond law or the county economic development
revenue bond law.
(g) Bonds sold by the municipality to:
(1) The United States or any agency or instrumentality
thereof;
(2) The State of Nevada;
(3) Any other municipality; or
(4) Not more than 10 investors each of whom certifies that
he:
(I) Has a net worth of $500,000 or more; and
(II) Is purchasing for investment and not for resale.
(h) Bonds which require unusual methods of financing, if the chief
administrative officer of the municipality certifies in writing that the
proposed method of financing:
(1) Has not been used previously by any municipality in this
state; and
(2) May provide a substantial benefit to the municipality.
(i) Refunding bonds, if the chief administrative officer of the
municipality certifies in writing that the use of a negotiated sale may
provide a substantial benefit to the municipality which would not be
available if the bonds were sold by competitive bid.
(j) Bonds which are sold at a time when, because of particular
conditions in the market, a negotiated sale may provide a benefit to the
municipality which would not be available if the bonds were sold by
competitive bid, if the chief administrative officer of the municipality
so certifies in writing.
(k) Bonds which are issued pursuant to chapter 271 of NRS and are not secured by a pledge of the taxing
power and general fund of the municipality.
(l) Revenue bonds which are issued pursuant to chapter 350A of NRS and are secured by a pledge of the
allocable local revenues of the municipality.
3. The certificate required by paragraph (h) of subsection 2 must
specifically describe the proposed method of financing. The certificate
required by paragraph (i) of subsection 2 must specifically describe the
circumstances that may provide a substantial benefit if the refunding
bonds are negotiated. The certificate required by paragraph (j) of
subsection 2 must specifically describe the particular conditions in the
market which indicate that a negotiated sale of the bonds may provide a
benefit to the municipality. Each certificate required pursuant to
subsection 2 must be submitted to the governing body of the municipality
at a regularly scheduled meeting of that body and include:
(a) The estimated amount of the benefit which will accrue to the
municipality.
(b) If the municipality has a financial adviser, a written report
prepared by that financial adviser which specifically describes the
method of sale which will be used for the proposed financing.
4. A copy of:
(a) The certificate required by paragraph (h), (i) or (j) of
subsection 2; and
(b) The report required pursuant to subsection 3,
Ê must be filed with the debt management commission of the county where
the municipality is located, the county clerk and the Department of
Taxation. Before entering into a contract to sell bonds, at least
two-thirds of the members of the governing body of the municipality must
approve the certificate.
5. If a municipality is required to sell the bonds it issues by
competitive bid pursuant to the provisions of this section, it must cause
an invitation for competitive bids, or notice thereof, to be published
before the date of the sale in the daily or weekly version of the Bond
Buyer, published at One State Street Plaza in New York City, New York, or
any successor publication.
6. As used in this section, “invitation for competitive bids”
means a process by which sealed bids or the reasonable equivalent
thereof, as approved by the governing body of a municipality, are
solicited, received and publicly opened at a specified time, place and
date.
(Added to NRS by 1995, 1019; A 1997, 514)
1. The governing body of a municipality may, before any sale of
bonds, whether by competitive bid or negotiated sale, delegate to the
chief administrative officer or chief financial officer of the
municipality the authority to sign a contract for the purchase of the
bonds or to accept a binding bid for the bonds subject to the
requirements specified by the governing body concerning:
(a) The rate of interest on the bonds;
(b) The dates on which and the prices at which the bonds may be
called for redemption before maturity;
(c) The price at which the bonds will be sold; and
(d) The principal amount of the bonds and the amount of principal
maturing in any particular year.
2. All terms of the bonds other than:
(a) The rate of interest;
(b) The dates and prices for the redemption of the bonds;
(c) The price for the sale of the bonds;
(d) The principal amount of the bonds; and
(e) The requirements for the principal maturing in particular years,
Ê must be approved by the governing body of the municipality before the
bonds are delivered.
3. The final rate of interest, dates and prices of redemption,
price for the sale of the bonds, principal amount and the requirements
for the principal amount maturing in particular years are not required to
be approved by the governing body of the municipality if each of those
terms complies with the requirements specified by the governing body
before the contract for the purchase of the bonds is signed or the bid
for the bonds is accepted.
(Added to NRS by 1995, 1020)
1. If a municipality wishes to sell its bonds by a negotiated
sale, it shall provide notice of the request for proposals in a manner
that ensures that a reasonable number of underwriters for the size of the
bond issue are notified of the request. The governing body of the
municipality shall approve the notice.
2. The procedure for a request for proposals established by a
municipality, including any requirement relating to:
(a) The rotation of the managing underwriters; and
(b) The municipality’s policy of equal opportunity concerning the
selection of underwriters,
Ê must be described in the written statement of the debt management
policy of the municipality.
3. A municipality may negotiate the sale of the bonds described in
the request for proposals with the underwriter it selects for not more
than 6 years after the date of the selection of that underwriter. If
bonds are not described in the request for proposals or if a negotiated
sale occurs more than 6 years after the selection of an underwriter, the
municipality shall request proposals from underwriters pursuant to
subsection 1 before it selects an underwriter for that negotiated sale.
4. As used in this section, “request for proposals” means a
statement which requests that prospective underwriters submit proposals
to the municipality to provide underwriting services for the negotiated
sale.
(Added to NRS by 1995, 1021)
1. The governing body of a municipality which sells bonds by a
negotiated sale shall establish a procedure for the selection of a
proposal for the sale of the bonds. The procedure must include a
consideration of:
(a) The ability and experience of the responding underwriter in the
underwriting of bonds sold by competitive bid or negotiated sale;
(b) The degree to which the proposal of the responding underwriter
meets the needs of the municipality and minimizes the risk and cost to
the municipality;
(c) An estimation of any fees or other elements of the gross spread
between the price paid to the municipality for the bonds and the price at
which the bonds are sold to investors;
(d) Any other fees, charges or commissions which the municipality
will be required to pay in connection with the issuance of the bonds; and
(e) Any fees paid by the underwriter to persons who are not his
employees to obtain business from the municipality.
2. The chief administrative officer of the municipality shall
certify that the procedure for selecting a proposal for the negotiated
sale pursuant to NRS 350.175 was
conducted in an open and fair manner.
(Added to NRS by 1995, 1021)
A financial
adviser who provides any report required pursuant to NRS 350.105 to 350.195 ,
inclusive, must not:
1. Be;
2. Control;
3. Be controlled by; or
4. Be under common control with,
Ê an underwriter for the bonds if those bonds are sold at a negotiated
sale.
(Added to NRS by 1995, 1022)
INTEREST RATES; DISCOUNTS; LIMITATION ON ISSUANCE OR SALE
As used in NRS 350.201 to 350.2013 , inclusive:
1. “Par” means the principal amount of a security plus the accrued
interest thereon from the date of the bonds to the date of delivery and
full payment.
2. “Political subdivision” includes without limitation a county,
city, town, school district or special district.
3. “Security” means a bond or other evidence of indebtedness.
(Added to NRS by 1967, 219)
Except where the provisions, whenever enacted, of a
general or special law or of a special charter otherwise require, the
rate or rates of interest on securities issued by a political subdivision
of this state must not exceed by more than 3 percent:
1. For general obligations, the Index of Twenty Bonds; and
2. For special obligations, the Index of Revenue Bonds,
Ê which was most recently published before the bids are received or a
negotiated offer is accepted.
(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115; 1975, 863;
1981, 1403; 1983, 574)
Except where the provisions, whenever
enacted, of a general or special law or of a special charter otherwise
require, securities issued by a political subdivision of this state may
be sold at par, above par or below par at a discount of not more than 9
percent of the principal amount, but the effective interest rate must not
exceed the limit provided in NRS 350.2011 .
(Added to NRS by 1967, 219; A 1969, 1291; 1971, 2115; 1975, 863;
1981, 1403; 1983, 574)
Except as otherwise provided in
subsection 4 of NRS 350.020 , no
security may be issued or sold by a political subdivision of this state
after the expiration of 6 years from the date of the election authorizing
such issue, if an election is required by any law whenever enacted.
(Added to NRS by 1967, 219; A 1997, 2466; 1999, 3222 )
COUNTY DEBT SERVICE FUND
Notwithstanding the provisions of any
special law authorizing the issuance of bonds or any covenant contained
in any bond, the board of county commissioners of any county may provide
by ordinance for the service of all general obligation bonded
indebtedness of the county through a single debt service fund in the
county treasury and a consolidated levy of taxes.
(Added to NRS by 1965, 650)
Such ordinance shall provide that upon the first day of the
ensuing fiscal year, all sinking funds or other debt service funds
however denominated which have been established by statute or pursuant to
covenant for general obligation indebtedness shall be merged into a
single fund.
(Added to NRS by 1965, 650)
Each levy of taxes made
after the enactment of such an ordinance shall include an amount for debt
service sufficient to meet all general obligation interest requirements
of the fiscal year for which the levy is made and to retire all bonds
scheduled for retirement during that year.
(Added to NRS by 1965, 651)
The provisions of
NRS 350.202 , 350.204 and 350.206
do not in any way impair the obligation of any bond issued prior to April
3, 1965, or postpone the due date of any installment of interest or
payment of principal.
(Added to NRS by 1965, 651)
WATER AND SEWER REVENUE BOND LAW
NRS 350.350 to 350.490 ,
inclusive, may be cited as the Water and Sewer Revenue Bond Law.
[1:109:1937; A 1949, 205; 1943 NCL § 1397.01]
Wherever used in NRS 350.350 to 350.490 ,
inclusive, unless a different meaning clearly appears from the context:
1. “Governing body” means the board of county commissioners, city
council, city commission, board of supervisors, town council, town board,
board of directors or board of trustees of a district, or other local
legislative body of a municipality.
2. “Undertaking” includes the following revenue-producing
undertakings or any combination of two or more of such undertakings,
whether now existing or hereafter acquired or constructed: Systems,
plants, works, instrumentalities and properties used or useful in
connection with:
(a) The obtaining of a water supply and the conservation, treatment
and disposal of water for public and private uses.
(b) The collection, treatment and disposal of sewage, waste and
storm water, together with all parts of any such undertaking and all
appurtenances thereto, including lands, easements, rights in land, water
rights, contract rights, franchises, approaches, dams, reservoirs, sewage
disposal plants, intercepting sewers, trunk, connection and other sewer
and water mains, filtration works, pumping stations and equipment.
[2:109:1937; A 1949, 205; 1943 NCL § 1397.02]—(NRS A 1969, 1591;
1981, 946)
350
to 350.490 , inclusive. In addition to the powers which
it may now have, any municipality shall, subject to the limitation stated
in this section, have power under NRS 350.350 to 350.490 ,
inclusive:
1. To acquire by gift, purchase or the exercise of the right of
eminent domain, to construct, to reconstruct, to improve, to better and
to extend any undertaking, wholly within or wholly without the
municipality, or partially within and partially without the municipality,
and to acquire by gift, purchase or the exercise of the right of eminent
domain, lands, easements, rights in lands and water rights in connection
therewith.
2. To operate and maintain any undertaking for its own use and for
the use of public and private consumers, and users within and without the
territorial boundaries of the municipality.
3. To prescribe, revise and collect rates, fees, tolls or charges
for the services, facilities or commodities furnished by such
undertaking, and, in anticipation of the collection of the revenues of
such undertaking, to issue revenue bonds to finance in whole or in part
the cost of the acquisition, construction, reconstruction, improvement,
betterment or extension of any undertaking.
4. To pledge to the punctual payment of the bonds and interest
thereon all or any part of the revenues of such undertaking (including
the revenues of improvements, betterments or extension thereto thereafter
constructed or acquired, as well as the revenues of existing systems,
plants, works, instrumentalities and properties of the undertaking so
improved, bettered or extended) or of any part of such undertaking.
5. When determined by its governing body to be in the public
interest and necessary for the protection of the public health, to enter
into and perform contracts, whether long-term or short-term, with any
industrial or mining establishment for the provision and operation by the
municipality of sewage facilities to abate or reduce the pollution of
water caused by discharges of industrial or mining waste by the
industrial or mining establishment and the payment periodically by the
industrial or mining establishment to the municipality of amounts at
least sufficient, in the determination of such governing body, to
compensate the municipality for the cost of providing (including payment
of principal and interest charges, if any) and of operating and
maintaining the sewerage facilities serving such industrial or mining
establishment.
6. Notwithstanding any provision of NRS 350.350 to 350.490 ,
inclusive, to the contrary or in conflict herewith, to accept
contributions or loans from the United States of America or any
department, instrumentality or agency thereof, for the purpose of
financing or aiding in financing the cost of preliminary investigations
and studies, surveys, plans and specifications, procedures and other
action preliminary to construction, and the construction, maintenance and
operation of any undertaking.
7. To make all contracts, execute all instruments and do all
things necessary or convenient in the exercise of the powers herein
granted or in the performance of its covenants or duties or in order to
secure the payment of its bonds; provided:
(a) No encumbrance, mortgage or other pledge of property of the
municipality is created thereby;
(b) No property of the municipality is liable to be forfeited or
taken in payment of the bonds; and
(c) No debt on the credit of the municipality is thereby incurred
in any manner for any purpose.
[3:109:1937; A 1949, 205; 1943 NCL § 1397.03]
In supplementation
of the provisions of subsection 3 of NRS 350.370 and elsewhere in the Water and Sewer Revenue
Bond Law, any municipality at any time and under any circumstances:
1. May prescribe, revise and collect minimum charges, connection
charges, charges for availability of service, legal and other expenses of
the collection of delinquencies and penalties appertaining thereto;
2. May enforce the collection of any delinquencies by civil action
or by any other means then provided by law; and
3. May otherwise prescribe, revise and collect in advance or
otherwise from any owner or occupant of real property served directly or
indirectly by any undertaking, or otherwise, rates, fees, tolls and
charges for the services, facilities or commodities furnished by the
undertaking, or any combination thereof, as the governing body may
determine from time to time.
(Added to NRS by 1967, 672)
Subject to any pledges and other contractual limitations
appertaining to revenues derived from the operation of any undertaking of
a municipality, such revenues may be used from time to time for the
following purposes, or any combination thereof, and in such priority, as
the governing body may determine:
1. For the payment of operation and maintenance expenses of any
undertaking;
2. For the payment of the costs of extensions of and improvements
to any undertaking, including without limitation extraordinary repairs
and replacements not constituting maintenance expenses;
3. For the payment of any other costs of constructing, otherwise
acquiring, operating, maintaining, extending and improving any properties
appertaining to water supply, water acquisition, treatment and
distribution facilities, sewage, sanitary sewer collection and disposal
facilities, storm waters, and storm water collection and disposal
facilities, and incidental costs relating thereto, and the payment of any
outstanding bonds and any other outstanding securities issued for any
one, all or any combination of such purposes by the municipality pursuant
to the Water and Sewer Revenue Bond Law or to any other law, and
constituting general obligations, special obligations, or otherwise, and
regardless of whether such payment is secured solely, additionally, or at
all by a pledge of such revenues, as to the principal of, any interest
on, and any prior redemption premiums due in connection with, such bonds
and other securities, and any paying agent charges and other incidental
expenses appertaining thereto, including without limitation any costs of
issuing such securities, as the same become due;
4. For the accumulation of reserves for any one, all or any
combination of the purposes stated above in this section; and
5. For the payment of any other expenses of the municipality,
regardless of whether or not they appertain to an undertaking.
(Added to NRS by 1967, 672)
The
acquisition, construction, reconstruction, improvement, betterment or
extension of any undertaking and the issuance, in anticipation of the
collection of the revenues of such undertaking, of bonds to provide funds
to pay the cost thereof may be authorized under NRS 350.350 to 350.490 ,
inclusive, by ordinance or resolution of the governing body, which may be
adopted at a regular meeting by a vote of a majority of the members
elected to the governing body.
[4:109:1937; 1931 NCL § 1397.04]—(NRS A 1959, 486; 1969, 1592;
1975, 864; 1981, 947)
The bonds shall be sold as provided in
the Local Government Securities Law.
[Part 5:109:1937; A 1949, 205; 1943 NCL § 1397.05]—(NRS A 1967,
221; 1969, 1592; 1975, 864)
350 to 350.490 ,
inclusive, additional and supplemental; controlling provisions.
1. The powers conferred by NRS 350.350 to 350.490 ,
inclusive, shall be in addition and supplemental to, and not in
substitution for, and the limitations imposed by NRS 350.350 to 350.490 ,
inclusive, shall not affect, the powers conferred by any other general or
special law or charter, including, without limitation, the Local
Government Securities Law.
2. The undertaking may be acquired, purchased, constructed,
reconstructed, improved, bettered and extended, notwithstanding that any
special or general law or local charter may provide for the acquisition,
purchase, construction, reconstruction, improvement, betterment and
extension of a like undertaking and without regard to the requirement,
restrictions, debt or other limitations or other provisions contained in
any other general or special law or charter, including, but not limited
to, any restriction or limitation on the incurring of indebtedness or the
issuance of bonds.
3. Insofar as the provisions of NRS 350.350 to 350.490 ,
inclusive, are inconsistent with the provisions of any other general or
special law or charter, the provisions of NRS 350.350 to 350.490 ,
inclusive, shall be controlling, except as otherwise provided in NRS
350.350 to 350.490 , inclusive; but the provisions of the Local
Government Securities Law are supplemental to NRS 350.350 to 350.490 ,
inclusive, to the extent the Local Government Securities Law pertains to
revenue bonds and other special obligations.
[11:109:1937; 1931 NCL § 1397.11]—(NRS A 1975, 864)
VIOLATION OF BOND COVENANTS
1. Any member of the governing body and any officer or other agent
of a municipality which has issued any bonds or municipal securities who
willfully violates any covenant or provision contained in any such
indentures or other instruments or proceedings appertaining thereto is
guilty of a misdemeanor.
2. A violation of a covenant existing on July 1, 1969, is not
“willful” for the purpose of this section if compliance is impractical
because of competition from a private enterprise or enterpriser offering
a comparable service.
(Added to NRS by 1969, 1088)
LOCAL GOVERNMENT SECURITIES LAW
NRS 350.500 to 350.720 ,
inclusive, may be cited as the Local Government Securities Law.
(Added to NRS by 1967, 421; A 1985, 2089, 2179; 1993, 1984)
It is the purpose of
the Local Government Securities Law to provide a procedure for financing
any projects otherwise authorized by law (other than by the levy and
collection of special assessments) and for the issuance of securities to
evidence or reevidence obligations incurred in connection with any such
projects. The Local Government Securities Law is supplemental in nature,
and nothing herein contained shall be construed as authorizing any
particular project nor as authorizing the incurrence of any obligations
to defray the cost of any project.
(Added to NRS by 1967, 421)
As used in this chapter and in any
instrument or document appertaining thereto, unless the context otherwise
requires, the words and terms defined in NRS 350.506 to 350.566 ,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1967, 421; A 1981, 947; 1985, 2179; 1987, 559)
“Acquisition” or
“acquire” includes the opening, laying out, establishment, purchase,
construction, securing, installation, reconstruction, lease, gift, grant
from the Federal Government, this state, any public body therein, or any
person, the endowment, bequest, devise, condemnation, transfer,
assignment, option to purchase, other contract, or other acquirement, or
any combination thereof, of any properties pertaining to a project, or an
interest therein.
(Added to NRS by 1967, 421; A 1967, 943)
“Chairman” or “chairman of the municipality” or any phrase of similar
import means the de facto or de jure chairman of the board of county
commissioners, mayor of the city or town, president of the board of
trustees of the school district, chairman of the board of directors of
any other type district, or the president thereof, or any other presiding
officer or titular head of the municipality, or his successor in
functions, if any.
(Added to NRS by 1967, 421)
“Clerk” means the de facto or de
jure county clerk, city clerk, town clerk, clerk of the board of trustees
of the school district, secretary or clerk of the board of directors of
any other type district, or other officer of the municipality who is the
custodian of any seal of the municipality and of the records of the
proceedings of the municipality’s governing body, or his successor in
functions, if any.
(Added to NRS by 1967, 422)
“Commercial bank” means:
1. A state or national bank or trust company that is a member of
the Federal Deposit Insurance Corporation, including, without limitation,
a branch of the Federal Reserve Bank.
2. A credit union whose deposits are insured by the National
Credit Union Share Insurance Fund or by a private insurer approved
pursuant to NRS 678.755 .
(Added to NRS by 1967, 422; A 1999, 1473 )
“Condemnation”
or “condemn” means the acquisition by the exercise of the power of
eminent domain of property for any project, or an interest therein,
herein designated.
(Added to NRS by 1967, 422; A 1985, 278)
“Cost of any project,”
or any phrase of similar import, means all or any part designated by the
governing body of the cost of any project, or interest therein, which
cost, at the option of the governing body, may include all or any part of
the incidental costs pertaining to the project, including, without
limitation:
1. Preliminary expenses advanced by the municipality from money
available for use therefor, or advanced by the Federal Government, or
from any other source, with the approval of the governing body or any
board or other agency of the municipality responsible for the project or
defraying the cost thereof, or any combination thereof;
2. The costs in the making of surveys, audits, preliminary plans,
other plans, specifications, estimates of costs and other preliminaries;
3. The costs of premiums on builders’ risk insurance and
performance bonds, or a reasonably allocable share thereof;
4. The costs of appraising, printing, estimates, advice, services
of engineers, architects, financial consultants, attorneys at law,
clerical help or other agents or employees;
5. The costs of making, publishing, posting, mailing and otherwise
giving any notice in connection with a project, the filing or recordation
of instruments, the taking of options, the issuance of bonds and other
securities, and bank fees and expenses;
6. The costs of contingencies;
7. The costs of the capitalization with proceeds of bonds or other
securities issued hereunder of any operation and maintenance expenses
appertaining to any facilities to be acquired as a project and of any
interest on bonds or other securities for any period not exceeding the
period estimated by the governing body to effect the project plus 1 year,
of any discount on bonds or other securities, and of any reserves for the
payment of the principal of and interest on the bonds or other
securities, of any replacement expenses, and of any other cost of
issuance of the bonds or other securities;
8. The costs of amending any ordinance, resolution or other
instrument authorizing the issuance of or otherwise appertaining to
outstanding bonds or other securities of the municipality;
9. The costs of funding any medium-term obligations, construction
loans and other temporary loans of not exceeding 10 years appertaining to
a project and of the incidental expenses incurred in connection with such
loans;
10. The costs of any properties, rights, easements or other
interests in properties, or any licenses, privileges, agreements, and
franchises;
11. The costs of demolishing, removing or relocating any
buildings, structures or other facilities on land acquired for any
project, and of acquiring lands to which such buildings, structures or
other facilities may be moved or relocated; and
12. All other expenses necessary or desirable and appertaining to
a project, as estimated or otherwise ascertained by the governing body.
(Added to NRS by 1967, 422; A 1975, 865; 1989, 53; 1997, 553)
“Disposal” or
“dispose” means the sale, destruction, razing, loan, lease, grant,
transfer, assignment, option to sell, other contract, or other
disposition, or any combination thereof, of facilities, other property,
or any interest therein.
(Added to NRS by 1971, 2114)
“Equip” or
“equipment” means the furnishing of all related or appurtenant machinery,
furnishings, apparatus, paraphernalia, or other gear, or any combination
thereof, pertaining to any project or other property, or any interest
therein.
(Added to NRS by 1971, 2114)
“Facilities” means buildings,
structures, utilities, or other income-producing facilities from the
operation of which or in connection with which pledged revenues for the
payment of any bonds or other securities issued hereunder are derived,
including without limitation any facilities to be acquired with the
proceeds of the bonds or securities issued hereunder.
(Added to NRS by 1967, 422)
“Federal Government”
means the United States, or any agency, instrumentality or corporation
thereof.
(Added to NRS by 1967, 423)
“Federal securities”
means bills, certificates of indebtedness, notes, bonds or similar
securities which are direct obligations of, or the principal and interest
of which securities are unconditionally guaranteed by, the United States.
(Added to NRS by 1967, 423)
“Governing body” means the
board of county commissioners, city council, city commission, board of
supervisors, town council, board of trustees of the school district,
board of directors or trustees of any other type district, or other local
legislative or governing body of the municipality.
(Added to NRS by 1967, 424)
“Gross revenues” or “gross pledged revenues” means all pledged revenues
received by the municipality and pledged wholly or in part for the
payment of any municipal securities issued hereunder.
(Added to NRS by 1967, 424)
“Hereby,” “herein,” “hereinabove,” “hereinafter,”
“hereinbefore,” “hereof,” “hereto,” “hereunder” and any similar term
refer to the Local Government Securities Law and not solely to the
particular portion thereof in which such word is used; “heretofore” means
before the adoption of the Local Government Securities Law; and
“hereafter” means after the adoption of the Local Government Securities
Law.
(Added to NRS by 1967, 424)
“Holder,” or any similar term, when
used in conjunction with any coupons, any bonds or any other securities,
means the person in possession and the apparent owner of the designated
item if such obligation is registered for payment to bearer or is not
registered, or the term means the registered owner of the designated item
if it is at the time registered for payment otherwise than to bearer.
(Added to NRS by 1967, 424)
“Improvement” or
“improve” includes the extension, widening, lengthening, betterment,
alteration, reconstruction or other major improvement, or any combination
thereof, of any properties pertaining to a project or an interest
therein, but does not mean renovation, reconditioning, patching, general
maintenance or other minor repair.
(Added to NRS by 1967, 424; A 1967, 943)
“Municipal” means pertaining to
a municipality as defined in NRS 350.538 .
(Added to NRS by 1967, 424)
“Municipal securities” or merely “securities” means notes, warrants,
bonds, temporary bonds and interim debentures authorized to be issued by
any municipality hereunder.
(Added to NRS by 1967, 424)
1. “Municipality” means any county, any incorporated city or town,
including, without limitation, any city or town organized under the
provisions of a special legislative act or other special charter, any
unincorporated town, any school district or any quasi-municipal district,
including, without limitation, the Nevada rural housing authority and any
district created pursuant to NRS 244.2961 or governed by title 25 of NRS, of this
state, or any other public agency authorized to issue general or special
obligations on behalf of any of these. Where the context so indicates,
“municipality” means the geographical area comprising the municipality.
2. “Municipality” does not include an irrigation district or other
special district governed by title 48 of NRS.
(Added to NRS by 1967, 424; A 1971, 2115; 1981, 947; 1983, 131;
1989, 76; 1995, 815)
“Net revenues” or “net pledged revenues” means “gross revenues,” after
the deduction of operation and maintenance expenses.
(Added to NRS by 1967, 424)
“Operation and maintenance expenses,” or any phrase of similar import,
means all reasonable and necessary current expenses of the municipality,
paid or accrued, of operating, maintaining and repairing the facilities
or of levying, collecting and otherwise administrating any excise taxes
pertaining to the pledged revenues for the payment of the bonds or other
securities issued hereunder; and the term may include at the governing
body’s option (except as limited by contract or otherwise limited by
law), without limiting the generality of the foregoing:
1. Engineering, auditing, reporting, legal and other overhead
expenses of the various municipal departments directly related and
reasonably allocable to the administration of the facilities;
2. Fidelity bond and property and liability insurance premiums
appertaining to the facilities, or a reasonably allocable share of a
premium of any blanket bond or policy pertaining to the facilities;
3. Payments to pension, retirement, health and hospitalization
funds and other insurance;
4. Any taxes, assessments, excise taxes, or other charges which
may be lawfully imposed on the municipality, any facilities, revenues
therefrom, or any privilege in connection with any facilities or their
operation;
5. The reasonable charges of any paying agent, or commercial bank,
trust bank or other depositary bank appertaining to any securities issued
by the municipality or appertaining to any facilities;
6. Contractual services, professional services, salaries, other
administrative expenses, and costs of materials, supplies, repairs and
labor, appertaining to the issuance of any municipal securities and to
any facilities, including without limitation the expenses and
compensation of any trustee, receiver or other fiduciary under the Local
Government Securities Law;
7. The costs incurred by the governing body in the collection and
any refunds of all or any part of the pledged revenues, including without
limitation revenues appertaining to any facilities;
8. Any costs of utility services furnished to the facilities by
the municipality or otherwise;
9. Any lawful refunds of any pledged revenues; and
10. All other administrative, general and commercial expenses.
(Added to NRS by 1967, 424)
The
term “operation and maintenance expenses” does not include:
1. Any allowance for depreciation;
2. Any costs of improvements;
3. Any accumulation of reserves for major capital replacements
(other than normal repairs);
4. Any reserves for operation, maintenance or repair of any
facilities;
5. Any allowance for the redemption of any bond or other municipal
security evidencing a loan or other obligation or for the payment of any
interest thereon;
6. Any liabilities incurred in the acquisition or improvement of
any properties comprising any project or of any existing facilities, or
any combination thereof; and
7. Any other ground of legal liability not based on contract.
(Added to NRS by 1967, 425)
“Ordinance” means a county
ordinance, city ordinance, town ordinance, school district or other type
district resolution, or other type of instrument by the adoption of which
the municipality exercises legislative powers.
(Added to NRS by 1967, 425)
“Pledged revenues” means
the moneys pledged wholly or in part for the payment of bonds or other
municipal securities issued in accordance with the provisions of the
Local Government Securities Law, and, subject to any existing pledges or
other contractual limitations:
1. May include at the governing body’s discretion moneys derived
from one, all or any combination of revenue resources appertaining to any
facilities, including without limitation use and service charges, rents,
fees and any other income derived from the operation or ownership of,
from the use or services of, or from the availability of or services
appertaining to, the lease of, any sale or other disposal of, any
contract or other arrangement, or otherwise derived in connection with
any facilities or all or any part of any property appertaining to any
facilities;
2. May so include all loans, grants, or contributions to the
municipality, if any, conditional or unconditional, from the Federal
Government, the State or any public body for the payment of the principal
of, the interest on, and any prior redemption premiums due in connection
with any municipal securities issued hereunder, or any combination
thereof; and
3. May so include the proceeds of any excise taxes levied and
collected by the municipality or otherwise received by it and authorized
by law (other than the Local Government Securities Law) to be pledged for
the payment of municipal securities issued in accordance with the
provisions of the Local Government Securities Law, but excluding the
proceeds of any taxes as defined in NRS 350.560 .
(Added to NRS by 1967, 425; A 1971, 2115)
“Project” means any undertaking or
undertakings which the governing body is authorized by law (other than
the Local Government Securities Law) to do in the name of the
municipality, the cost of which the governing body is authorized by law
(other than the Local Government Securities Law) to defray wholly or in
part by the issuance of bonds or other securities of the municipality as
provided hereunder.
(Added to NRS by 1967, 426)
“Public body” means the Nevada
System of Higher Education, the Board of Regents of the University of
Nevada, any county, city, town, school district, other type district,
authority, commission or other type of body corporate and politic
constituting a political subdivision of the State, other than the
municipality proceeding hereunder.
(Added to NRS by 1967, 426; A 1993, 395; 2005, 364 )
“State” means the State of Nevada,
or any board, department or other agency or instrumentality thereof, in
the United States; and where the context so indicates, “State” means the
geographical area comprising the State of Nevada.
(Added to NRS by 1967, 426; A 1971, 2115)
“Taxation” means the levy and
collection of taxes as defined in NRS 350.560 , but in NRS 350.710 “taxation” pertains to any type of tax,
including, without limitation, any business, occupation or privilege tax,
any other excise tax, and any property tax, except for the tax on estates
imposed pursuant to the provisions of chapter 375A of NRS and the tax on generation-skipping
transfers imposed pursuant to the provisions of chapter 375B of NRS.
(Added to NRS by 1967, 426; A 1969, 1592; 1989, 2107; 1991, 1710)
“Taxes” means general (ad valorem)
property taxes.
(Added to NRS by 1967, 426)
1. “Treasurer” means:
(a) The de facto or de jure county treasurer, city treasurer, town
treasurer or treasurer of any district, or his successor in functions, if
any.
(b) The county treasurer in the case of any municipality (other
than a county) which has no treasurer and for which the county treasurer
is required or authorized by law to be the official custodian of the
moneys of such municipality, or his successor in functions, if any.
2. “Treasurer” may mean the county treasurer if the governing body
of the municipality (other than a county) expressly so provides in any
instrument or other proceedings hereunder, or his successor in functions,
if any.
(Added to NRS by 1967, 426)
“Trust bank” means:
1. A commercial bank as defined in NRS 350.512 that is authorized to exercise and is
exercising trust powers.
2. A branch of the Federal Reserve Bank.
3. A credit union whose deposits are insured by the National
Credit Union Share Insurance Fund or by a private insurer approved
pursuant to NRS 678.755 that is
authorized to exercise and is exercising trust powers.
(Added to NRS by 1967, 426; A 1999, 1473 )
“United States” means the
United States of America; and where the context so indicates, “United
States” means the geographical area comprising the United States of
America.
(Added to NRS by 1967, 426; A 1971, 2116)
In connection with any project, the municipality, acting by and through
the governing body, except as herein otherwise provided, may:
1. Sue and be sued;
2. Acquire and hold real or personal property, or rights or
interests therein, and water rights;
3. Dispose of unnecessary or obsolete property, or property
obtained for persons or public bodies within the State, including without
limitation water or water rights, or rights or interests in any such
property;
4. Make contracts and execute all instruments necessary or
convenient, as determined by the governing body;
5. Acquire by contract or contracts or by its own agents and
employees or otherwise acquire any properties for any project or
projects, and operate and maintain such properties; and
6. Accept grants of money or materials or property of any kind
from the Federal Government, the State, any public body or any person,
upon such terms and conditions as the Federal Government, the State,
public body or person may impose.
(Added to NRS by 1967, 426)
1. The governing body may:
(a) Exercise on behalf of the municipality the power of eminent
domain in the manner provided in chapter 37
of NRS, except as herein otherwise provided;
(b) Take any property necessary to carry out any of the objects or
purposes concerning such a project, whether the property is already
devoted to the same use by any person (but not the Federal Government,
the State or any other public body in the absence of any provision to the
contrary in any act supplemental hereto); and
(c) Condemn any existing works or improvements of any such person
now or hereafter used.
2. The power of eminent domain vested in the governing body
includes the power to condemn, in the name of the municipality, either
the fee simple or any lesser estate or interest in any real property
which the governing body by ordinance determines is necessary for
carrying out the purposes hereof. The ordinance is prima facie evidence
that the taking of the fee simple, easement or other interest, as the
case may be, is necessary. The governing body shall not abandon any
condemnation proceedings after the date upon which the municipality has
taken possession of the property being acquired.
3. If the construction or other acquisition of any project, or any
part thereof, makes necessary the removal and relocation of any public
utilities, whether on private or public right-of-way, or otherwise, the
governing body shall reimburse the owner of the public utility facility
for the expense of removal and relocation, including the cost of any
necessary land or rights in land, except where the cost of removal and
relocation is or has been considered a proper element of just
compensation in any settlement by negotiation or in any eminent domain
proceeding.
(Added to NRS by 1985, 277)
For the purpose of paying the cost of any
project authorized by law (other than the Local Government Securities
Law), at any time or from time to time the municipality may borrow money
or otherwise become obligated for the project and may evidence any such
obligation by the issuance of municipal securities in accordance with the
provisions of the Local Government Securities Law, to the extent
otherwise authorized by law.
(Added to NRS by 1967, 427)
The
municipality may issue, in one series or more, without the municipal
securities being authorized at any election in the absence of an
expressed provision to the contrary in the act authorizing the project
and the issuance of municipal securities therefor or in any act
supplemental thereto, in anticipation of taxes or pledged revenues, or
both, and constituting either general obligations or special obligations
of the municipality, any one or more or all of the following types of
municipal securities:
1. Notes, evidencing any amount borrowed by the municipality;
2. Warrants, evidencing the amount due to any person for any
services or supplies, equipment or other materials furnished to or for
the benefit of the municipality and appertaining to a project;
3. Bonds, evidencing any amount borrowed by the municipality and
constituting long-term financing;
4. Temporary bonds, pending the preparation of and exchangeable
for definitive bonds of like character and in like principal amount when
prepared and issued in compliance with the conditions and limitations
herein provided; and
5. Interim debentures, evidencing any medium-term obligations,
construction loans, and other temporary loans of not exceeding 10 years,
in supplementation of long-term financing and the issuance of bonds, as
provided in NRS 350.672 to 350.682
, inclusive.
(Added to NRS by 1967, 427; A 1975, 252; 1989, 54; 1997, 554)
1. A municipality may sell the right to call for purchase all or
any part of an issuance of securities if, in the ordinance authorizing
the issuance of the securities, it has:
(a) Reserved the right to make the sale;
(b) Provided the time during which a call may be exercised; and
(c) Provided the price of the purchase.
2. The municipality shall set forth the price and other terms for
the sale of the right to call the security in the ordinance authorizing
the issuance of the security or a supplemental ordinance adopted before
or at the time of the sale of a right to call the security.
3. The owner of the right to call the security may call it only as
provided in the ordinance authorizing the issuance of the security or in
an ordinance supplemental thereto. A supplemental ordinance must not
amend the time during which a call may be exercised or the price of the
purchase.
4. The municipality may purchase its own security pursuant to a
right to call the security for purchase. A call for purchase must be in
accordance with the price and other terms for the purchase set forth in
the ordinance authorizing the issuance of the security or in an ordinance
supplemental thereto. A supplemental ordinance must not amend the time
during which a call may be exercised or the price of the purchase. Such a
purchase by a municipality does not discharge the indebtedness evidenced
by the security unless the municipality cancels the security so purchased.
(Added to NRS by 1993, 1983)
Notes and warrants may mature at such time or times not exceeding 1 year
from the date or the respective dates of their issuance as the governing
body may determine. They shall not be extended or funded except by the
issuance of bonds or interim debentures in compliance with NRS 350.672
to 350.680 , inclusive, and other provisions supplemental
thereto.
(Added to NRS by 1967, 427)
1. Upon the adoption of a resolution to finance the preservation
or restoration of a historic structure, in the manner provided in NRS
350.087 , by a municipality, a certified
copy thereof must be forwarded to the Executive Director of the
Department of Taxation, accompanied by a letter from the Office of
Historic Preservation of the Department of Cultural Affairs certifying
that the preservation or restoration conforms to accepted standards for
such work. As soon as is practicable, the Executive Director of the
Department of Taxation shall, after consideration of the tax structure of
the municipality concerned and the probable ability of the municipality
to repay the requested financing, approve or disapprove the resolution in
writing to the governing board. No such resolution is effective until
approved by the Executive Director of the Department of Taxation. The
written approval of the Executive Director of the Department of Taxation
must be recorded in the minutes of the governing board.
2. If the Executive Director of the Department of Taxation does
not approve the financing resolution, the governing board of the
municipality may appeal the Executive Director’s decision to the Nevada
Tax Commission.
3. As used in this section, “historic structure” means a building,
facility or other structure which is eligible for listing in the State
Register of Historic Places under NRS 383.085 .
(Added to NRS by 1985, 2178; A 1993, 1570; 1995, 1813; 2001, 939
)
1. Whenever the governing body of any municipality is authorized
to enter into financing for restoration of a historic structure, as
provided in NRS 350.575 , the governing
body may issue, as evidence thereof, negotiable notes or bonds.
2. The negotiable notes or bonds must:
(a) Mature not later than 15 years after the date of issuance.
(b) Bear interest at a rate or rates which do not exceed by more
than 3 percent the Index of Twenty Bonds which was most recently
published before the bids are received or a negotiated offer is accepted.
(Added to NRS by 1985, 2178)
Each temporary bond shall set forth
substantially the same conditions, terms and provisions as the definitive
bond for which it is exchanged. Each holder of a temporary bond shall
have all the rights and remedies which he would have as a holder of the
definitive bond for which the temporary bond is to be exchanged.
(Added to NRS by 1967, 427)
The ordinance authorizing the issuance of any
municipal securities hereunder shall describe the purpose or purposes for
which they are issued at least in general terms and may describe any
purpose in detail.
(Added to NRS by 1967, 427)
1. Any ordinance pertaining to the sale, issuance or payment of
bonds or other securities of the municipality (or any combination
thereof) may be adopted as if an emergency existed.
2. The governing body’s declaration, if any, in any ordinance that
it is such an ordinance shall be conclusive in the absence of fraud or
gross abuse of discretion.
3. Such an ordinance may become effective at any time when an
emergency ordinance of the municipality may go into effect.
4. Such an ordinance may be adopted by an affirmative vote of not
less than two-thirds of all the voting members of the governing body
(excluding from any such computation any vacancy on the governing body
and any member thereon who may vote only to break a tie vote).
(Added to NRS by 1969, 1612; A 1975, 866)
The
municipality may issue as general obligations any of the following types
of municipal securities:
1. Notes;
2. Warrants;
3. Interim debentures;
4. Bonds; and
5. Temporary bonds,
Ê payable from taxes, or payable from taxes and additionally securing
such payment by a pledge of net revenues or gross revenues, as the
governing body may determine, except as may be otherwise provided in any
act supplemental hereto.
(Added to NRS by 1967, 428)
The
municipality may issue as special obligations any of the following types
of municipal securities:
1. Notes;
2. Warrants;
3. Interim debentures;
4. Bonds; and
5. Temporary bonds,
Ê in anticipation of net pledged revenues but not under any circumstances
under their terms and the proceedings authorizing their issuance in
anticipation of taxes nor, unless otherwise expressly provided in any act
supplemental hereto, in anticipation of gross pledged revenues. Such
special obligation municipal securities may be payable from, secured by a
pledge of, and constitute a lien on net pledged revenues and if expressly
so provided in any act supplemental hereto gross pledged revenues.
(Added to NRS by 1967, 428)
1. The ordinance or resolution authorizing the issuance of any
municipal securities or any trust indenture or other instrument
appertaining thereto may fix a rate or rates of interest or provide for
the determination of the rate or rates from time to time by a designated
agent according to the procedure specified in that ordinance or other
instrument. The rate so determined must approximate the rates then being
paid for other securities which contain similar provisions and have an
equivalent rating. A governing body of a municipality may contract with
or select any person to make that determination.
2. A governing body of a municipality may enter into an agreement
with a third party for an assurance of payment of the principal of, the
interest on, or premiums, if any, due in connection with any municipal
securities issued by the governing body. The obligation of the governing
body to reimburse that third party for any advances made pursuant to that
agreement may be provided in that agreement, recited in those securities
or evidenced by another instrument as designated in the ordinance or
resolution authorizing the issuance of those securities or any other
instrument appertaining thereto. The governing body may assign its rights
under that agreement.
(Added to NRS by 1985, 2088)
In fixing the rate or rates of
interest for municipal securities pursuant to subsection 1 of NRS 350.583
or the rate or rates of interest
imposed on the governing body for reimbursement of any advances made
under an agreement pursuant to subsection 2 of NRS 350.583 , the governing body is not subject to any
limitations on rates of interest provided by statute, including NRS
350.2011 , or provided in the question
at an election authorizing the issuance of those securities. The
ordinance or resolution fixing that rate or rates of interest must
contain the findings of the governing body that the procedure specified
therein for determining that rate or rates is reasonable under existing
or anticipated conditions in the market and is necessary and advisable
for marketing the securities. These findings are conclusive. This section
does not prohibit the governing body from fixing a maximum rate of
interest in that ordinance or resolution.
(Added to NRS by 1985, 2089)
Any ordinance authorizing the issuance of general obligation
securities or special obligation securities payable from gross revenues
or any indenture or other proceedings appertaining thereto may contain a
covenant of the municipality that to the extent required, as provided
therein, the municipality will pay operation and maintenance expenses by
appropriation from its general fund and that to the extent the moneys
accounted for therein are insufficient for that purpose the municipality
shall levy taxes therefor.
(Added to NRS by 1967, 428)
Any outstanding general obligation bonds, any
temporary general obligation bonds to be exchanged for such definitive
bonds, and any general obligation interim debentures constitute
outstanding indebtedness of the municipality and exhaust the
debt-incurring power of the municipality under any statutory debt
limitation appertaining thereto.
(Added to NRS by 1967, 428)
Any other municipal securities
(except general obligation notes and general obligation warrants)
constitute special obligations of the municipality, and all such other
securities (including all notes and warrants, general obligations or
special obligations, payable within 1 year from date) do not constitute
outstanding indebtedness of the municipality nor exhaust its
debt-incurring power under any such debt limitation.
(Added to NRS by 1967, 428)
1. Municipal securities issued hereunder and constituting special
obligations shall recite in substance that the securities and the
interest thereon are payable solely from the net revenues or gross
revenues pledged to the payment thereof.
2. Municipal securities issued hereunder and constituting general
obligations shall pledge the full faith and credit of the municipality
for their payment, shall so state, and shall state that they are payable
from taxes.
3. General obligation municipal securities the payment of which is
additionally secured by a pledge of revenues shall recite in substance,
in addition to the statements required by subsection 2 of this section,
that the payment of the securities and the interest thereon is
additionally secured by a pledge of the net revenues or the gross
revenues, as the case may be, designated in the securities.
(Added to NRS by 1967, 428)
1. There must be levied annually in due season a special tax on
all property, both real and personal, subject to taxation within the
boundaries of the municipality, fully sufficient together with the
revenue which will result from application of the rate to the net
proceeds of minerals, without regard to any statutory or charter tax
limitations other than the limitation set forth in NRS 361.453 , to pay the interest on the general obligation
municipal securities and to pay and retire the securities as provided in
the Local Government Securities Law and in any act supplemental hereto.
The amount of money to be raised by the tax must be included in the
annual estimate or budget for each county within the state for each year
for which the tax is hereby required to be levied. The tax must be levied
and collected in the same manner and at the same time as other taxes are
levied and collected.
2. The proceeds thereof levied to pay interest on the securities
must be kept by the treasurer in a special fund, separate and apart from
all other funds, and the proceeds of the tax levied to pay the principal
of the securities must be kept by the treasurer in a special fund,
separate and apart from all other funds. The two special funds must be
used for no other purpose than the payment of the interest on the
securities and the principal thereof, respectively, when due; but, except
as prevented by any contractual limitations imposed upon the municipality
by proceedings appertaining to its outstanding securities, the
municipality may provide for a consolidated debt service fund to pay
principal of and interest on outstanding securities, when due.
(Added to NRS by 1967, 429; A 1967, 944; 1989, 44; 1993, 2659)
Such tax
shall be levied immediately after the issuance of any general obligation
securities issued in accordance with the provisions of the Local
Government Securities Law, and annually thereafter, at the times and in
the manner provided by law, until all of the securities, and the interest
thereon, have been fully discharged. Such tax may be first levied after
the municipality has contracted to sell any securities but before their
issuance.
(Added to NRS by 1967, 429; A 1975, 866)
Any sums coming due on any general obligation municipal
securities at any time when there are not on hand from such tax levy or
levies sufficient funds to pay the same shall be promptly paid when due
from the general fund of the municipality, reimbursement to be made to
such general fund in the sums thus advanced when the taxes herein
provided for have been collected.
(Added to NRS by 1967, 429)
Nothing contained in the Local Government Securities Law shall be so
construed as to prevent the municipality from applying any funds (other
than taxes) that may be available for that purpose to the payment of the
interest on or the principal of any general obligation municipal
securities as the same respectively mature, and regardless of whether the
payment of the general obligation municipal securities is additionally
secured by a pledge of revenues, and upon such payments, the levy or
levies of taxes provided in the Local Government Securities Law may
thereupon to that extent be diminished.
(Added to NRS by 1967, 429)
There is by the Local Government Securities Law,
and there shall be by ordinance authorizing the issuance of any
indebtedness contracted in accordance with the provisions of the Local
Government Securities Law, specially appropriated the proceeds of such
taxes to the payment of such principal and interest; and such
appropriations shall not be repealed nor the taxes postponed or
diminished (except as herein otherwise expressly provided) until the
principal of and interest on the municipal securities evidencing such
debt have been wholly paid.
(Added to NRS by 1967, 430)
1. Except as otherwise provided in subsection 2:
(a) The payment of municipal securities may not be secured by an
encumbrance, mortgage or other pledge of property of the municipality; and
(b) No property of the municipality is liable to be forfeited or
taken in payment of the securities.
2. The payment of municipal securities may be secured by pledged
revenues, proceeds of taxes and any other money pledged for the payment
of the securities. A municipality may encumber, mortgage or otherwise
pledge property purchased from the proceeds of a loan to secure repayment
of that loan.
(Added to NRS by 1967, 430; A 1989, 709)
No recourse
shall be had for the payment of the principal of, any interest on, and
any prior redemption premiums due in connection with any bonds or other
municipal securities or for any claim based thereon or otherwise upon the
ordinance authorizing their issuance or other instrument appertaining
thereto, against any individual member of the governing body or any
officer or other agent of the municipality, past, present or future,
either directly or indirectly through the governing body or the
municipality, or otherwise, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any penalty or
otherwise, all such liability, if any, being by the acceptance of the
securities and as a part of the consideration of their issuance specially
waived and released.
(Added to NRS by 1967, 430; A 1975, 866)
None of the covenants, agreements, representations and
warranties contained in any ordinance authorizing the issuance of bonds
or other municipal securities issued under the provisions of the Local
Government Securities Law and constituting special obligations, or in any
other instrument appertaining thereto, in the absence of any breach
thereof, shall ever impose or shall be construed as imposing any
liability, obligation or charge against the municipality (except the
special funds pledged therefor) or against the general credit of the
municipality, payable out of the general fund of the municipality, or out
of any funds derived from taxation.
(Added to NRS by 1967, 430)
The faith of the State
is hereby pledged that the Local Government Securities Law, any law
supplemental or otherwise appertaining thereto, and any other act
concerning the bonds or other municipal securities, taxes or the pledged
revenues or any combination of such securities, such taxes and such
revenues shall not be repealed nor amended or otherwise directly or
indirectly modified in such a manner as to impair adversely any
outstanding municipal securities, until all such securities have been
discharged in full or provision for their payment and redemption has been
fully made, including without limitation the known minimum yield from the
investment or reinvestment of moneys pledged therefor in federal
securities.
(Added to NRS by 1967, 431)
Except as otherwise provided in the Local Government Securities Law and
in any other act the provisions of which are relevant by express
reference herein thereto or by provisions to that effect therein, any
securities issued hereunder must be:
1. In such a form;
2. Issued in such a manner, at, above or below par at such a
discount not exceeding 9 percent of the principal amount of the
securities, and at such a price which will result in an effective
interest rate which does not exceed the limit provided in NRS 350.2011
;
3. Issued with such provisions:
(a) For the application of any accrued interest and any premium
from the sale of any bonds or other municipal securities hereunder as
provided in NRS 350.648 ;
(b) For the registration of the bonds or other securities for
payment as to principal only, or as to both principal and interest, at
the option of any holder of a bond or other security, or for registration
for payment only in either manner designated;
(c) For the endorsement of payments of interest on the bonds or
other securities or for reconverting the bonds or other securities into
coupon bonds or other coupon securities, or both for such endorsement and
such reconversion, where any bond or other security is registered for
payment as to interest; and where interest accruing on the securities is
not represented by interest coupons the securities may provide for the
endorsing of payments of interest thereon;
(d) For the endorsement of payments of principal on the bonds or
other securities, where any bond or other securities are registered for
payment as to principal;
(e) For the initial issuance of one or more bonds or other
securities aggregating the amount of the entire issue or any portion
thereof, and the endorsement of payments of interest or principal, or
both interest and principal, on the securities;
(f) For the manner and circumstances in and under which any such
bond or other securities may in the future, at the request of the holder
thereof, be converted into bonds or other securities of larger or smaller
denominations, which bonds or other securities of larger or smaller
denominations may in turn be either coupon bonds or other coupon
securities or bonds or other securities registered for payment, or coupon
bonds or other coupon securities with provisions for registration for
payment;
(g) For the reissuance of any outstanding bonds or other
securities, and the terms and conditions thereof, whether lost,
apparently destroyed, wrongfully taken, or for any other reason, as
provided in the Uniform Commercial Code—Investment Securities, or
otherwise;
(h) For the deposit of money, federal securities or other
securities of the Federal Government, or both money and all such
securities, with and securing their repayment by a commercial bank or
commercial banks within or without or both within and without this state;
(i) For the payment of costs or expenses incident to the
enforcement of the securities or of the provisions of the ordinance or of
any covenant or contract with the holders of the securities; and
4. Issued otherwise with such recitals, terms, covenants,
conditions and other provisions,
Ê as may be provided by the governing body in an ordinance authorizing
their issuance and in any indenture or other proceedings appertaining
thereto.
(Added to NRS by 1967, 431; A 1969, 1292; 1971, 2116; 1975, 866;
1981, 1403; 1983, 574)
1. Notes, bonds and interim debentures must be sold in the manner
prescribed in NRS 350.105 to 350.195
, inclusive.
2. Warrants may be issued to evidence the amount due to any person
furnishing services or materials as provided in the Local Government
Securities Law.
3. Temporary bonds must be issued to a purchaser of the definitive
bonds in anticipation of the exchange of the former for the latter.
(Added to NRS by 1967, 432; A 1971, 2117; 1973, 560; 1983, 593;
1995, 1022)
An ordinance providing for the issuance of
bonds or other municipal securities hereunder or an indenture or other
proceedings appertaining thereto may provide that the securities contain
a recital that they are issued pursuant to the Local Government
Securities Law, which recital shall be conclusive evidence of their
validity and the regularity of their issuance.
(Added to NRS by 1967, 433)
1. As the governing body may determine, any bonds and other
municipal securities issued hereunder, except as otherwise provided in
the Local Government Securities Law, or in any act supplemental thereto,
must:
(a) Be of a convenient denomination or denominations;
(b) Be fully negotiable within the meaning of and for all the
purposes of the Uniform Commercial Code—Investment Securities;
(c) Mature at such time or serially at such times in regular
numerical order at annual or other designated intervals in amounts
designated and fixed by the governing body, except as herein otherwise
provided;
(d) Bear interest at a rate or rates which do not exceed the limit
provided in NRS 350.2011 , payable
annually, semiannually or at other designated intervals, but the first
interest payment date may be for interest accruing for any other period;
(e) Be made payable in lawful money of the United States, at the
office of the treasurer or any commercial bank or commercial banks within
or without or both within and without the State as may be provided by the
governing body; and
(f) Be printed at such a place, within or without this State, as
the governing body may determine.
2. General obligation bonds must mature within 30 years from their
respective dates and, if they mature serially, commencing not later than
the fifth year thereafter, in such manner as the governing body may
determine.
3. Special obligation bonds must mature within 50 years from their
respective dates.
(Added to NRS by 1967, 433; A 1969, 1293; 1971, 2118; 1975, 867;
1981, 948, 1404; 1983, 575)
The principal of, the interest on and any prior
redemption premium due in connection with any municipal securities shall
be paid as the same become due in accordance with the terms of the
securities and any ordinances and other proceedings appertaining to their
issuance, without any warrant or further order or other preliminaries.
(Added to NRS by 1967, 433)
Any bonds issued hereunder (except
temporary bonds) shall have one or two sets of interest coupons, bearing
the number of the bond to which they are respectively attached, numbered
consecutively in regular numerical order, and attached in such manner
that they can be removed upon the payment of the installments of interest
without injury to the bonds, except as herein otherwise provided.
(Added to NRS by 1967, 434)
Bonds and other municipal securities issued
hereunder shall be executed in the name of the municipality, shall be
signed by the chairman of the municipality and by the treasurer, and
shall be attested by the clerk; and the bonds or other securities shall
be authenticated by the seal of the municipality affixed thereto, unless
it has no seal. Any coupons shall be signed by the treasurer. Facsimile
signatures may be used on any coupons.
(Added to NRS by 1967, 434)
Any bonds or other
securities, including without limitation any certificates endorsed
thereon, may be executed with facsimile signatures and seals as provided
in chapter 351 of NRS. A compliance therewith
is not a condition precedent to the execution of any coupon with a
facsimile signature.
(Added to NRS by 1967, 434; A 1985, 279)
The bonds, any coupons appertaining thereto and other
securities, bearing the signatures of the officers in office at the time
of the signing thereof, shall be the valid and binding obligations of the
municipality, notwithstanding that before the delivery thereof and
payment therefor any or all of the persons whose signatures appear
thereon have ceased to fill their respective offices.
(Added to NRS by 1967, 434)
Any officer authorized or permitted to sign any bonds, any
coupons or any other securities, at the time of their execution and of a
signature certificate appertaining thereto, may adopt as and for his own
facsimile signature the facsimile signature of his predecessor in office
in the event that such facsimile signature appears upon the bonds,
coupons and other securities appertaining thereto, or any combination
thereof.
(Added to NRS by 1967, 435)
The governing body may
provide for the redemption of any or all of the bonds or other municipal
securities before maturity, in such order, by lot or otherwise, at such a
time or times, without or with the payment of such a premium or premiums
not exceeding 9 percent of the principal amount of each bond or other
security so redeemed, and otherwise upon such terms as may be provided by
the governing body in the ordinance authorizing the issuance of the
securities or other instrument appertaining thereto.
(Added to NRS by 1967, 435; A 1971, 2118; 1975, 868; 1981, 1405)
Any bonds or
other municipal securities may be repurchased by the governing body out
of any funds available for such purpose at a price of not more than the
principal amount thereof and accrued interest, plus the amount of the
premium, if any, which might on the next prior redemption date of such
securities be paid to the holders thereof if such securities should be
called for redemption on such date pursuant to their terms, and all
securities so repurchased shall be cancelled; but if the securities may
not be called for prior redemption at the municipality’s option within 1
year from the date of their purchase, they may be repurchased without
limitation as to price.
(Added to NRS by 1967, 435)
All moneys received from the issuance of any securities
herein authorized shall be used solely for the purpose or purposes for
which issued and to defray wholly or in part the cost of the project
thereby delineated. Any accrued interest and any premium shall be applied
to the cost of the project or to the payment of the interest on or the
principal of the securities, or both interest and principal, or shall be
deposited in a reserve therefor, or any combination thereof, as the
governing body may determine.
(Added to NRS by 1967, 435)
Any unexpended balance of the proceeds of such
securities remaining after the completion of the acquisition or
improvement of properties pertaining to the project or otherwise the
completion of the purpose or purposes for which such securities were
issued shall be credited immediately to the fund or account created for
the payment of the interest on or the principal of the securities, or
both principal and interest, and shall be used therefor, subject to the
provisions as to the times and methods for their payment as stated in the
securities and the proceedings authorizing or otherwise appertaining to
their issuance, or so paid into a reserve therefor, or any combination
thereof, as the governing body may determine.
(Added to NRS by 1967, 435)
1. The validity of any securities shall not be dependent on nor
affected by the validity or regularity of any proceedings relating to a
project or the proper completion of any purpose for which the securities
are issued.
2. The purchaser or purchasers of the securities shall in no
manner be responsible for the application of the proceeds of the
securities by the municipality or any of its officers, agents and
employees.
(Added to NRS by 1967, 435)
The
governing body in any ordinance authorizing the issuance of bonds or
other securities hereunder or in any instrument or other proceedings
appertaining thereto may create special funds and accounts for the
payment of the cost of a project, of operation and maintenance expenses,
of the securities, including the accumulation and maintenance of reserves
therefor, of improvements, including the accumulation and maintenance of
reserves therefor, and of other obligations appertaining to the
securities, any project or any facilities.
(Added to NRS by 1967, 436)
1. The governing body on the behalf of the municipality may employ
legal, fiscal, engineering and other expert services in connection with
any project or any facilities, or both such project and facilities, and
the authorization, sale and issuance of bonds and other securities
hereunder.
2. The governing body on the behalf of the municipality is
authorized to enter into any contracts or arrangements, not inconsistent
with the provisions hereof, with respect to the sale of bonds or other
securities hereunder, the employment of engineers, architects, financial
consultants and bond counsel, and other matters as the governing body may
determine to be necessary or desirable in accomplishing the purposes
hereof.
(Added to NRS by 1967, 436)
1. The governing body, subject to any contractual limitations from
time to time imposed upon the municipality by any ordinance authorizing
the issuance of the municipality’s outstanding securities or by any trust
indenture or other proceedings appertaining thereto, may cause to be
invested and reinvested any proceeds of taxes, any pledged revenues and
any proceeds of bonds or other municipal securities issued hereunder in:
(a) Federal securities and other securities of the Federal
Government.
(b) Money market mutual funds that:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in securities issued or guaranteed as to
payment of principal and interest by the Federal Government, or its
agencies or instrumentalities, or in repurchase agreements that are fully
collateralized by such securities.
Ê The governing body may cause such proceeds of taxes, revenues,
municipal securities, federal securities, other securities of the Federal
Government and money market mutual funds to be deposited in any trust
bank or trust banks within or without or both within and without this
state and secured in such manner and subject to such terms and conditions
as the governing body may determine, with or without the payment of any
interest on such deposit, including, without limitation, time deposits
evidenced by certificates of deposit.
2. Any federal securities, other securities of the Federal
Government, shares in money market mutual funds and any such certificates
of deposit thus held may, from time to time, be sold, and the proceeds
may be so reinvested or redeposited as provided in this section.
3. Sales and redemptions of any federal securities, other
securities of the Federal Government, shares in money market mutual funds
and such certificates of deposit thus held must, from time to time, be
made in season so that the proceeds may be applied to the purposes for
which the money with which such securities, shares in money market mutual
funds and certificates of deposit were originally acquired was placed in
the municipal treasury.
4. Any gain from any such investments or reinvestments may be
credited to any fund or account pledged for the payment of any municipal
securities issued hereunder, including any reserve therefor, or any other
fund or account appertaining to a project or any facilities or the
municipality’s general fund, subject to any contractual limitations in
any proceedings appertaining to outstanding municipal securities.
5. It is lawful for any commercial bank incorporated under the
laws of this state which may act as depository of the proceeds of any
securities issued hereunder, any federal securities, other securities of
the Federal Government and shares in money market mutual funds owned by
the municipality, any proceeds of taxes, any pledged revenues, and any
money otherwise appertaining to a project or any facilities, or any
combination thereof, to furnish such indemnifying bonds and to pledge
such federal securities, such other securities issued by the Federal
Government, such shares in money market funds and such other securities
as may be required by the governing body.
(Added to NRS by 1967, 436; A 1997, 2869)
The governing body of a municipality whose population is 50,000 or
more, subject to any contractual limitations from time to time imposed
upon the municipality by any ordinance authorizing the issuance of
outstanding securities of the municipality or by any trust indenture or
other proceedings appertaining thereto, may cause to be invested and
reinvested, except as otherwise provided in NRS 350.698 , any proceeds of taxes, any pledged revenues
and any proceeds of bonds or other municipal securities issued hereunder
for which the amount of the principal of the original issuance was
$10,000,000 or more in an investment contract that is collateralized with
securities issued by the Federal Government or agencies of the Federal
Government if:
1. The collateral has a market value of at least 102 percent of
the amount invested and any accrued unpaid interest thereon;
2. The municipality receives a security interest in the collateral
that is fully perfected and the collateral is held in custody for the
municipality or its trustee by a third-party agent of the municipality
which is a commercial bank authorized to exercise trust powers;
3. The market value of the collateral is determined not less
frequently than weekly and, if the ratio required by subsection 1 is not
met, sufficient additional collateral is deposited with the agent of the
municipality to meet that ratio within 2 business days after the
determination; and
4. The party with whom the investment contract is executed is a
commercial bank, or that party or a guarantor of the performance of that
party is:
(a) An insurance company which has a rating on its ability to pay
claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA”
by Standard and Poor’s Ratings Services, or their equivalent; or
(b) An entity which has a credit rating on its outstanding
long-term debt of not less than “A2” by Moody’s Investors Service, Inc.,
or “A” by Standard and Poor’s Ratings Services, or their equivalent.
(Added to NRS by 1997, 2868; A 2003, 824 )
Any ordinance providing for the issuance of any bonds or
other municipal securities hereunder payable from pledged revenues and
any indenture or other instrument or proceedings appertaining thereto may
at the discretion of the governing body contain covenants or other
provisions, notwithstanding such covenants and provisions may limit the
exercise of powers conferred hereby, in order to secure the payment of
such securities, in agreement with the holders of such securities,
including without limitation covenants or other provisions as to any one
or more of the following:
1. The pledged revenues and, in the case of general obligations,
the taxes to be fixed, charged or levied and the collection, use and
disposition thereof, including but not limited to the foreclosure of
liens for delinquencies, the discontinuance of services, facilities or
use of any properties or facilities, prohibition against free service,
the collection of penalties and collection costs, and the use and
disposition of any moneys of the municipality, derived or to be derived,
from any source herein designated;
2. The acquisition, improvement or equipment of all or any part of
properties pertaining to any project or any facilities;
3. The creation and maintenance of reserves or sinking funds to
secure the payment of the principal of and interest on any securities or
of operation and maintenance expenses of any facilities, or part thereof,
and the source, custody, security, regulation, use and disposition of any
such reserves or funds, including but not limited to the powers and
duties of any trustee with regard thereto;
4. A fair and reasonable payment by the municipality from its
general fund or other available moneys to the account of any designated
facilities for services rendered thereby to the municipality;
5. The payment of the cost of any project by delineating the
purpose or purposes to which the proceeds of the sale of securities may
be applied, and the custody, security, use, expenditure, application and
disposition thereof;
6. The temporary investment and any reinvestment of proceeds of
bonds, other securities, any taxes or pledged revenues, or any
combination thereof, in federal securities and other securities issued by
the Federal Government;
7. The pledge of and the creation of a lien upon pledged revenues
or the proceeds of bonds or other municipal securities pending their
application to defray the cost of any project, or both such revenues and
proceeds of such securities, to secure the payment of bonds or other such
securities issued hereunder;
8. The payment of the principal of and interest on any municipal
securities, and any prior redemption premiums due in connection
therewith, and the sources and methods thereof, the rank or priority of
any securities as to any lien or security for payment, or the
acceleration of any maturity of any securities, or the issuance of other
or additional securities payable from or constituting a charge against or
lien upon any pledged revenues or other moneys pledged for the payment of
securities and the creation of future liens and encumbrances thereagainst;
9. The use, regulation, inspection, management, operation,
maintenance or disposition, or any limitation or regulation of the use,
of all or any part of the facilities or any property of the municipality
appertaining thereto;
10. The determination or definition of pledged revenues from any
facilities or of operation and maintenance expenses of facilities, the
use and disposition of such revenues and the manner of and limitations
upon paying such expenses;
11. The creation of special funds and accounts appertaining to any
pledged revenues or to the bonds or other securities issued hereunder;
12. The insurance to be carried by the municipality or any other
person in interest and use and disposition of insurance moneys, the
acquisition of completion, performance, surety and fidelity bonds
appertaining to any project or funds, or both, and the use and
disposition of any proceeds of such bonds;
13. Books of account, the inspection and audit thereof, and other
records appertaining to any project, facilities or pledged revenues;
14. The assumption or payment or discharge of any obligation, lien
or other claim relating to any part of any project, any facilities or any
securities having or which may have a lien on any part of any pledged
revenues or other moneys of the municipality;
15. Limitations on the powers of the municipality to acquire or
operate, or permit the acquisition or operation of, any structures,
facilities or properties which may compete or tend to compete with any
facilities;
16. The vesting in a corporate or other trustee or trustees of
such property, rights, powers and duties in trust as the governing body
may determine, which may include any or all of the rights, powers and
duties of the trustee appointed by the holders of securities, and
limiting or abrogating the right of such holders to appoint a trustee, or
limiting the rights, duties and powers of such trustee;
17. Events of default, rights and liabilities arising therefrom,
and the rights, liabilities, powers and duties arising upon the breach by
the municipality of any covenants, conditions or obligations;
18. The terms and conditions upon which the holders of the
municipal securities or any portion, percentage or amount of them may
enforce any covenants or provisions made hereunder or duties imposed
thereby;
19. The terms and conditions upon which the holders of the
securities or of a specified portion, percentage or amount thereof; or
any trustee therefor, shall be entitled to the appointment of a receiver,
which receiver may enter and take possession of any facilities or
service, operate and maintain the same, prescribe fees, rates and
charges, and collect, receive and apply all revenues thereafter arising
therefrom in the same manner as the municipality itself might do;
20. A procedure by which the terms of any ordinance authorizing
securities, or any other contract with any holders of municipal
securities, including but not limited to an indenture of trust or similar
instrument, may be amended or abrogated, and as to the proportion,
percentage or amount of securities the holders of which must consent
thereto, and the manner in which such consent may be given;
21. The terms and conditions upon which any or all of the
securities shall become or may be declared due before maturity, and as to
the terms and conditions upon which such declaration and its consequences
may be waived; and
22. All such acts and things as may be necessary or convenient or
desirable in order to secure the securities, or in the discretion of the
governing body tend to make the securities more marketable,
notwithstanding that such covenant, act or thing may not be enumerated
herein, it being the intention hereof to give the governing body power to
do in the name and on behalf of the municipality all things in the
issuance of municipal securities and for their security except as herein
expressly limited.
(Added to NRS by 1967, 437)
1. Revenues pledged for the payment of any securities, as received
by or otherwise credited to the municipality, shall immediately be
subject to the lien of each such pledge without any physical delivery
thereof, any filing or further act.
2. The lien of each such pledge and the obligation to perform the
contractual provisions made in the authorizing resolution or other
instrument appertaining thereto shall have priority over any or all other
obligations and liabilities of the municipality, except as may be
otherwise provided herein or in the resolution or other instrument, and
subject to any prior pledges and liens theretofore created.
3. The lien of each such pledge shall be valid and binding as
against all persons having claims of any kind in tort, contract or
otherwise against the municipality irrespective of whether such persons
have notice thereof.
(Added to NRS by 1967, 439)
Subject to any contractual limitations binding upon the
holders of any issue or series of municipal securities, or trustee
therefor, including but not limited to the restriction of the exercise of
any remedy to a specified proportion, percentage or number of such
holders, and subject to any prior or superior rights of others, any
holder of securities, or trustee therefor, shall have the right and
power, for the equal benefit and protection of all holders of securities
similarly situated:
1. By mandamus or other suit, action or proceeding at law or in
equity to enforce his rights against the municipality, the governing
body, and any other of the officers, agents and employees of the
municipality, to require and compel the municipality, the governing body,
or any such officers, agents or employees to perform and carry out their
respective duties, obligations or other commitments hereunder and their
respective covenants and agreements with the holder of any security;
2. By action or suit in equity to require the municipality to
account as if it is the trustee of an express trust;
3. By action or suit in equity to have appointed a receiver, which
receiver may enter and take possession of any facilities and any pledged
revenues for the payment of the securities, prescribe sufficient fees
derived from the facilities, and collect, receive and apply all pledged
revenues or other moneys pledged for the payment of the securities in the
same manner as the municipality itself might do in accordance with the
obligations of the municipality; and
4. By action or suit in equity to enjoin any acts or things which
may be unlawful or in violation of the rights of the holder of any
securities and to bring suit thereupon.
(Added to NRS by 1967, 439)
1. If an ordinance of the governing body authorizing or providing
for the issuance of any municipal securities of any series or any other
proceedings appertaining thereto contains a provision authorized by
subsection 19 of NRS 350.660 and
further provides in substance that any trustee appointed pursuant to
subsection 16 of NRS 350.660 shall have
the powers provided by that subsection, then such trustee, whether or not
all of the bonds or other securities of such series have been declared
due and payable, shall be entitled as of right to the appointment of a
receiver of the facilities appertaining thereto.
2. Any receiver appointed as permitted by subsection 19 of NRS
350.660 may enter upon and take
possession of the facilities and property appertaining thereto, and,
subject to any pledge or contract with the holders of such securities,
shall take possession of all moneys and other property derived from or
applicable to the acquisition, operation, maintenance or improvement of
the facilities and proceed with such acquisition, operation, maintenance
or improvement which the governing body on the behalf of the municipality
is under any obligation to do, and operate, maintain, equip and improve
the facilities, and fix, charge, collect, enforce and receive the service
charges and all revenues thereafter arising subject to any pledge thereof
or contract with the holders of such securities relating thereto and
perform the public duties and carry out the contracts and obligations of
the municipality in the same manner as the governing body itself might do
and under the direction of the court.
(Added to NRS by 1967, 440)
No right or remedy
conferred upon any holder of any securities or any coupon appertaining
thereto or any trustee for such holder hereby or by any proceedings
appertaining to the issuance of such securities or coupon is exclusive of
any right or remedy, but each such right or remedy is cumulative and in
addition to every other right or remedy and may be exercised without
exhausting and without regard to any other remedy conferred hereby or by
any other law.
(Added to NRS by 1967, 440)
The failure of
any holder of any municipal securities or any coupons appertaining
thereto so to proceed as herein provided or in such proceedings shall not
relieve the municipality, the governing body or any of the officers,
agents and employees of the municipality of any liability for failure to
perform or carry out any duty, obligation or other commitment.
(Added to NRS by 1967, 440)
1. Notwithstanding any limitation or other provision herein,
whenever the municipality is authorized to issue general obligation
bonds, but only if the qualified electors of the municipality voting on a
proposal to issue the general obligation bonds have authorized in the
manner required by law their issuance by the municipality for any
project, if such general obligation bonds as a condition to their
issuance are so required to be authorized at an election, the
municipality is authorized to borrow money without any other election in
anticipation of the proceeds of taxes, the proceeds of the bonds, the
proceeds of pledged revenues, or any other moneys of the municipality, or
any combination thereof, and to issue general obligation interim
debentures to evidence the amount so borrowed.
2. Notwithstanding any limitation or other provision herein,
whenever the municipality is authorized to issue special obligation
revenue bonds, but only if the qualified electors of the municipality
voting on a proposal to issue the revenue bonds have authorized in the
manner required by law their issuance by the municipality for any
project, if such revenue bonds as a condition to their issuance are so
required to be authorized at an election, the municipality also is
authorized to borrow money without any election in anticipation of the
proceeds of revenue bonds or any other special obligations of the
municipality and of its pledged revenues, or any combination thereof, but
excluding the proceeds of any taxes, and to issue special obligation
interim debentures to evidence the amount so borrowed.
(Added to NRS by 1967, 440)
1. Subject to the provisions of subsections 2, 3, 4 and 5, nothing
contained herein shall be construed as authorizing the municipality to
issue any municipal securities constituting a debt for the purpose of
funding or refunding municipal securities constituting special
obligations which do not constitute an indebtedness.
2. Any special obligation securities of a municipality pertaining
to any project may be funded or refunded by general obligation securities
pertaining to the project only if the municipality is authorized by law
to issue such funding or refunding securities at the time of their
issuance, even though the municipality was not so authorized to issue
them at the time of the issuance of any such funded or refunded
securities.
3. If the issuance of general obligation bonds to defray the cost
of the project is conditioned upon their approval by the qualified
electors of the municipality at an election, any general obligation
securities pertaining to the project and creating an indebtedness, by
funding or refunding special obligation securities or otherwise, may be
issued only if the bonds have been so approved at an election in the
manner provided by law.
4. If a debt limitation pertains to any general obligation bonds
or other securities of a municipality constituting an indebtedness and
relating to any project, no general obligation securities pertaining to
the project and creating an indebtedness, by funding or refunding special
obligation securities or otherwise (in contradistinction to funding or
refunding bonds merely reevidencing an indebtedness formerly evidenced by
the securities funded or refunded), shall be issued in a principal amount
exceeding such debt limitation.
5. No bonds of a municipality shall be refunded by the issuance of
its interim debentures, its notes or its warrants. No interim debentures
of a municipality shall be funded by the issuance of its notes or its
warrants.
(Added to NRS by 1967, 441; A 1969, 1593)
1. Any interim debentures may mature at such time or times not
exceeding a period of time equal to the estimated time needed to effect
the purpose or purposes for which they are issued or for which the bonds
are authorized to be issued, but not exceeding 5 years from the date of
the interim debentures, as the governing body may determine.
2. The proceeds of interim debentures shall be used to defray the
cost of a project.
3. Any notes or warrants or both notes and warrants may be funded
with the proceeds of interim debentures, as well as bonds.
4. Except as otherwise provided in NRS 350.672 to 350.682 ,
inclusive, interim debentures shall be issued as provided herein for
municipal securities in NRS 350.584 to
350.670 , inclusive, and NRS 350.708
to 350.720 , inclusive.
(Added to NRS by 1967, 441; A 1969, 1593; 1975, 868)
1. Except as otherwise provided in NRS 350.674 , the proceeds of taxes, pledged revenues and
other money, including without limitation proceeds of bonds to be issued
or reissued after the issuance of interim debentures, and bonds issued to
secure the payment of interim debentures, or any combination thereof, may
be pledged to secure the payment of interim debentures; but the proceeds
of taxes and the proceeds of bonds payable from taxes, or any combination
thereof, must not be used to pay any special obligation interim
debentures nor may their payment be secured by a pledge of any such
general obligation bonds.
2. Any bonds pledged as collateral security for the payment of any
interim debentures must mature at such time or times as the governing
body may determine, except as otherwise provided in subsections 2 and 3
of NRS 350.630 .
3. Any bonds pledged as collateral security must not be issued in
an aggregate principal amount exceeding the aggregate principal amount of
the interim debenture or interim debentures secured by a pledge of such
bonds, nor may they bear interest at any time which, with any interest
accruing at the same time on the interim debenture or interim debentures
so secured, exceeds the rate permitted on the debenture or debentures
secured, computed from the appropriate index which was most recently
published before the bids are received or a negotiated offer is accepted.
(Added to NRS by 1967, 441; A 1969, 1294; 1971, 2119; 1975, 868;
1981, 1405; 1983, 576)
No interim
debentures issued pursuant to the provisions of NRS 350.672 to 350.678 ,
inclusive, shall be extended or funded except by the issuance or
reissuance of a bond or bonds in compliance with NRS 350.682 .
(Added to NRS by 1967, 442)
1. For the purpose of funding any interim debentures, any bonds
pledged as collateral security to secure the payment of such interim
debentures, upon their surrender as pledged property, may be reissued
without an election, and any bonds not previously issued but authorized
to be issued, at an election in the case of bonds required by law so to
be authorized, and otherwise merely by the governing body, for a purpose
or purposes the same as or encompassing the purpose or purposes for which
the interim debentures were issued, may be issued for such a funding.
2. Any such bonds shall mature at such time or times as the
governing body may determine, except as otherwise provided in subsections
2 and 3 of NRS 350.630 .
3. Bonds for funding (including but not necessarily limited to any
such reissued bonds) and bonds for any other purpose or purposes may be
issued separately or issued in combination in one series or more.
4. Except as herein otherwise provided in this section and in NRS
350.676 , 350.678 and 350.680 ,
any such funding bonds shall be issued as is provided herein for other
bonds.
(Added to NRS by 1967, 442)
Subject to the provisions of NRS 350.674
, any general obligation bonds or
special obligation bonds of the municipality issued in accordance with
the provisions of the Local Government Securities Law or any other act
and payable from any pledged revenues and any general obligation bonds of
the municipality so issued but not payable from pledged revenues may be
refunded on behalf of the municipality by the governing body, without the
necessity of the refunding bonds being authorized at an election except
as otherwise provided in NRS 350.674 ,
by the adoption of an ordinance or ordinances by the governing body and
by any trust indenture or other proceedings appertaining thereto,
authorizing the issuance of refunding bonds to refund, pay and discharge
all or any part of such outstanding bonds of any one or more or all
outstanding issues:
1. For the acceleration, deceleration or other modification of the
payment of such obligations, including any interest thereon in arrears,
or about to become due for any period not exceeding 3 years from the date
of the refunding bonds, unless the capitalization of interest on bonds
constituting an indebtedness increases the municipal debt in excess of
the municipality’s debt limitation, if any;
2. For the purpose of reducing interest costs or effecting other
economies;
3. For the purpose of modifying or eliminating restrictive
contractual limitations appertaining to the issuance of additional bonds,
otherwise concerning the outstanding bonds, or otherwise relating to any
facilities appertaining thereto; or
4. For any combination of the purposes stated in subsections 1, 2
and 3.
(Added to NRS by 1967, 442; A 1969, 1594)
Nothing
contained in the Local Government Securities Law or in any other law of
this state shall be construed to permit the governing body to call on
behalf of the municipality bonds or other securities outstanding now or
any time after April 12, 1967, for prior redemption in order to fund or
refund such securities or in order to pay them prior to their stated
maturities, unless the right to call such securities for prior redemption
was specifically reserved and stated in such securities at the time of
their issuance, and all conditions with respect to the manner, price and
time applicable to such prior redemption as set forth in the proceedings
authorizing the outstanding securities are strictly observed. It is the
intention of the Legislature in this section to make it certain that the
holder of no outstanding bond or other security may be compelled to
surrender such security for funding or refunding prior to its stated
maturity or optional date of prior redemption expressly reserved therein,
even though such funding or refunding might result in financial benefit
to the municipality.
(Added to NRS by 1967, 442; A 1967, 943; 1969, 1594)
Notwithstanding the provisions of
NRS 350.686 or of any other law, this
state, acting by and through the State Board of Finance, may agree with
the governing body to exchange any outstanding bonds or other securities
issued by the municipality and held by the State, or any agency,
corporation, department or other instrumentality of the State, for
funding or refunding bonds or other funding securities of the
municipality or otherwise to surrender at such price and time and
otherwise upon such conditions and other terms and in such manner as may
be mutually agreeable such outstanding bonds or other securities to the
governing body for funding or refunding at any time prior to their
respective maturities or to any date as of which the municipality has the
right and option to call on its behalf such outstanding securities for
prior redemption as expressly provided in the outstanding securities and
any ordinance, trust indenture or other proceedings authorizing their
issuance.
(Added to NRS by 1967, 443; A 1969, 1595)
Any provision herein concerning the refunding of
outstanding bonds includes any outstanding securities evidencing
long-term loans to the municipality regardless of whether such securities
are designated as bonds, certificates, single certificates or otherwise.
(Added to NRS by 1967, 443)
1. Any bonds issued for refunding purposes may be delivered in
exchange for the outstanding bonds being refunded or may be sold in the
manner prescribed in NRS 350.105 to
350.195 , inclusive.
2. The refunding bonds, or any part thereof, except as limited by
subsection 2 of NRS 350.698 , may be
exchanged by the municipality for federal securities and other securities
of the Federal Government which have been made available for escrow
investment by any purchaser of refunding bonds, upon terms of exchange
mutually agreed upon, and any such securities so received by the
municipality must be placed in escrow as provided in NRS 350.696 and 350.698 .
(Added to NRS by 1967, 443; A 1995, 1022)
1. No bonds may be refunded under this chapter unless the holders
thereof voluntarily surrender them for exchange or payment, or unless
they either mature or are callable for prior redemption under their terms
within 25 years from the date of issuance of the refunding bonds.
Provision must be made for paying the securities within that period.
2. The maturity of any bond refunded may not be extended beyond 25
years, or beyond 1 year next following the date of the last outstanding
maturity, whichever limitation is later, nor may any interest on any bond
refunded be increased to any rate which exceeds the limit provided in NRS
350.2011 .
3. The principal amount of the refunding bonds may exceed the
principal amount of the refunded bonds, but in the case of any bonds
constituting a debt the principal of the bonds may not be increased to
any amount in excess of any municipal debt limitation.
4. The principal amount of the refunding bonds may also be less
than or the same as the principal amount of the bonds being refunded so
long as provision is duly and sufficiently made for their payment.
5. If at the time of the issuance of any issue of general
obligation refunding bonds provision is not made for the redemption of
all the outstanding bonds of the or each issue refunded, as the case may
be, by the use of proceeds of the refunding bonds and any other money
available for the redemption, the general obligation refunding bonds may
mature but are not required to mature serially commencing not later than
the fifth year after their respective dates in accordance with subsection
2 of NRS 350.630 .
(Added to NRS by 1967, 443; A 1969, 1294; 1971, 2119; 1975, 869;
1981, 948, 1405; 1983, 576, 1595)
1. Except as herein otherwise provided, the proceeds of refunding
bonds shall either be immediately applied to the retirement of the bonds
to be refunded or be placed in escrow or trust in any trust bank or trust
banks within or without or both within and without this state to be
applied to the payment of the refunded bonds or the refunding bonds, or
both the refunded bonds and the refunding bonds, upon their presentation
therefor to the extent, in such priority and otherwise in the manner
which the governing body may determine.
2. The incidental costs of refunding bonds may be paid by the
purchaser of the refunding bonds or be defrayed from any general fund
(subject to appropriations therefor as otherwise provided by law) or
other available revenues of the municipality under the control of the
governing body or from the proceeds of the refunding bonds, or from the
interest or other yield derived from the investment of any refunding bond
proceeds or other moneys in escrow or trust, or from any other sources
legally available therefor, or any combination thereof, as the governing
body may determine.
3. Any accrued interest and any premium appertaining to a sale of
refunding bonds may be applied to the payment of the interest thereon or
the principal thereof, or to both interest and principal, or may be
deposited in a reserve therefor, or may be used to refund bonds by
deposit in escrow, trust or otherwise, or may be used to defray any
incidental costs appertaining to the refunding, or any combination
thereof, as the governing body may determine.
(Added to NRS by 1967, 444)
1. Any such escrow or trust shall not necessarily be limited to
proceeds of refunding bonds but may include other moneys available for
its purpose.
2. Any proceeds in escrow or trust, pending such use, may be
invested or reinvested in federal securities, and in the case of an
escrow or trust for the refunding of outstanding municipal special
obligation (but not general obligation) securities, in other securities
issued by the Federal Government, if the ordinance authorizing the
issuance of such outstanding municipal securities or any trust indenture
or other proceedings appertaining thereto expressly permits any such
investment or reinvestment in such securities issued by the Federal
Government other than federal securities.
3. Any trust bank accounting for federal securities and other
securities issued by the Federal Government in such escrow or trust may
place them for safekeeping wholly or in part in any trust bank or trust
banks within or without or both within and without this state.
4. Any trust bank shall continuously secure any moneys placed in
escrow or trust and not so invested or reinvested in federal securities
and other securities issued by the Federal Government by a pledge in any
trust bank or trust banks within or without or both within and without
the state of federal securities in an amount at all times at least equal
to the total uninvested amount of such moneys accounted for in such
escrow or trust.
5. Such proceeds and investments in escrow or trust, together with
any interest or other gain to be derived from any such investment, shall
be in an amount at all times at least sufficient to pay principal,
interest, any prior redemption premiums due, and any charges of the
escrow agent or trustee and any other incidental expenses payable
therefrom, except to the extent provision may have been previously
otherwise made therefor, as such obligations become due at their
respective maturities or due at designated prior redemption date or dates
in connection with which the governing body has exercised or is obligated
to exercise a prior redemption option on behalf of the municipality.
6. The computations made in determining such sufficiency shall be
verified by a certified public accountant licensed to practice in this
state or in any other state.
7. Any purchaser of any refunding bond issued hereunder shall in
no manner be responsible for the application of the proceeds thereof by
the municipality, the governing body or any of the officers, agents or
employees of the municipality.
(Added to NRS by 1967, 444)
Refunding bonds may be made payable from any taxes or pledged
revenues, or both taxes and such revenues, which might be legally pledged
for the payment of the bonds being refunded at the time of the refunding
or at the time of the issuance of the bonds being refunded, as the
governing body may determine, notwithstanding the taxes, or the revenue
sources, or the pledge of such revenues, or any combination thereof, for
the payment of the outstanding bonds being refunded is thereby modified,
subject to the provisions of NRS 350.674 .
(Added to NRS by 1967, 445)
Bonds
for refunding and bonds for any other purpose or purposes authorized
hereby or by any other law may be issued separately or issued in
combination in one series or more by the municipality in accordance with
the provisions of the Local Government Securities Law.
(Added to NRS by 1967, 445)
1. Bonds of any municipality abolished by law may be refunded
under the provisions hereof. Whether or not the bonds of the abolished
municipality have been assumed by any successor municipality prior to the
issuance of the refunding bonds, the refunding bonds must be authorized
by the governing body of each successor municipality in which is situated
all or any part of the area of the abolished municipality.
2. If the obligation of the abolished municipality evidenced by
its outstanding bonds has not been assumed wholly or in part by a
successor municipality prior to the authorization of the issuance of the
refunding bonds, the refunding bonds shall be issued in the name of the
abolished municipality and shall evidence the same character of
obligations as evidenced by the refunded bonds.
3. To the extent any obligation evidenced by the refunded bonds
has been so assumed by a successor municipality, the refunding bonds
shall be authorized to be issued in the name of the successor
municipality which shall reevidence such assumed obligation and shall
evidence the same character of obligation as evidenced by such obligation
as assumed by the successor municipality, subject to the limitations and
other provisions in NRS 350.674 and
350.700 .
(Added to NRS by 1967, 445; A 1979, 1641)
Except as in NRS 350.684 to
350.704 , inclusive, expressly provided
or necessarily implied, the relevant provisions elsewhere herein
appertaining generally to the issuance of bonds to defray the cost of any
project shall be equally applicable in the authorization and issuance of
refunding bonds, including their terms and security, the covenants and
other provisions of the ordinance authorizing the issuance of the bonds,
or other instrument or proceedings appertaining thereto, and other
aspects of the bonds.
(Added to NRS by 1967, 446)
The determination of the governing
body that the limitations in the Local Government Securities Law imposed
upon the issuance of bonds or upon the issuance of other securities
hereunder, including without limitation any securities for funding or
refunding securities, have been met shall be conclusive in the absence of
fraud or arbitrary and gross abuse of discretion regardless of whether
the authorizing ordinance or the securities thereby authorized contain a
recital as authorized by NRS 350.628 .
(Added to NRS by 1967, 446; A 1969, 1595)
1. Except as otherwise provided in subsection 2, bonds and other
securities issued pursuant to the provisions of the Local Government
Securities Law, their transfer and the income therefrom must forever be
and remain free and exempt from taxation by this state or any subdivision
thereof.
2. The provisions of subsection 1 do not apply to the tax on
estates imposed pursuant to the provisions of chapter 375A of NRS or the tax on generation-skipping transfers
imposed pursuant to the provisions of chapter 375B of NRS.
(Added to NRS by 1967, 446; A 1989, 2107; 1991, 1710)
It is legal for the State Board of Finance
to invest any permanent state funds or other state funds available for
investment in any of the bonds or other securities authorized to be
issued pursuant to the provisions hereof if the securities constitute
general obligations payable from taxes.
(Added to NRS by 1967, 446)
1. It is legal for any bank, trust company, banker, savings bank
or institution, savings and loan association, investment company and any
other person carrying on a banking or investment business, any insurance
company, insurance association, or any other person carrying on an
insurance business, and any executor, administrator, curator, trustee or
any other fiduciary, to invest funds or money in his custody in any of
the bonds or other securities issued in accordance with the provisions of
the Local Government Securities Law.
2. Nothing contained in this section with regard to legal
investments relieves any representative of any corporation or other
person of any duty of exercising reasonable care in selecting securities.
(Added to NRS by 1967, 446; A 1983, 131)
1. The Local Government Securities Law, without reference to other
statutes of this state, except as herein otherwise expressly provided,
shall constitute full authority for the exercise of the incidental powers
herein granted concerning the borrowing of money and any other incurrence
of obligations to defray wholly or in part the cost of any project
appertaining to the municipality and otherwise authorized by law, or to
refinance outstanding loans, or both, and the issuance of bonds or other
securities to evidence such loans or other obligations or to fund or
refund outstanding securities, or any combination thereof, as the
governing body may determine.
2. No other act or law with regard to the authorization or
issuance of securities or the exercise of any other power herein granted
that requires an election or another approval or in any way impedes or
restricts the carrying out of the acts herein authorized to be done shall
be construed as applying to any proceedings taken hereunder or acts done
pursuant hereto, except as otherwise provided in the Local Government
Securities Law or in any act supplemental hereto.
3. The powers conferred by the Local Government Securities Law
shall be in addition and supplemental to and not in substitution for, and
the limitations imposed by the Local Government Securities Law shall not
affect the powers conferred by, any other law.
4. Nothing contained in the Local Government Securities Law shall
be construed as preventing the exercise of any power granted to the
municipality, acting by and through the governing body, or any officer,
agent or employee of the municipality, or otherwise, by any other law.
5. No part of the Local Government Securities Law shall repeal or
affect any other law or part thereof, it being intended that the Local
Government Securities Law shall provide a separate method of
accomplishing its objectives and not an exclusive one; and the Local
Government Securities Law shall not be construed as repealing, amending
or changing any such other law.
(Added to NRS by 1967, 448)
The Local Government Securities
Law being necessary to secure the public health, safety, convenience and
welfare, shall be liberally construed to effect its purposes.
(Added to NRS by 1967, 448)
MISCELLANEOUS PROVISIONS
1. A transaction whereby a municipality acquires real or personal
property and another person acquires or retains a security interest in
that or other property creates a general obligation of the municipality
which must be counted against any limit upon its debt unless:
(a) The obligation by its terms is extinguished by failure of the
governing body to appropriate money for the ensuing fiscal year for
payment of the amounts then due; or
(b) The budget of the municipality for the fiscal year in which the
transaction occurs includes a provision for the discharge of the
obligation in full.
2. Any member of the governing body may vote upon such a
transaction whether or not the obligation incurred is expected to extend
beyond his term of office, without any special notice or other formality.
3. Any such transaction is subject to the requirements of this
chapter for an election if it must be counted against a debt limit, but,
except as otherwise provided in NRS 350.011 to 350.0165 , inclusive, and 350.087 to 350.095 ,
inclusive, is not subject to any other requirement of this chapter.
4. In addition to or as a substitute for granting a security
interest in the property being acquired in a transaction described in
subsection 1, the municipality may grant a security interest in other
property if the governing body finds that:
(a) Granting the security interest in the other property will
result in lower financing costs to the municipality; and
(b) The value of all property in which a security interest is
granted does not, at the time the security interest is granted, exceed an
amount equal to one and one-half times the value of the property being
acquired.
Ê The finding and determination of values by the governing body are
conclusive in the absence of fraud or gross abuse of discretion.
(Added to NRS by 1981, 942; A 1989, 166; 2001, 2314 )
1. Except as permitted by this section, no person who for
compensation advises a municipality concerning the acquisition of a
project to be financed in whole or in part by issuing general or special
obligations of the municipality, or concerning the issuance or sale of
those obligations, may purchase any of them from the municipality. This
subsection does not prohibit:
(a) One who performs work or furnishes property for the project
from accepting municipal obligations in payment for his work or property.
(b) An adviser from purchasing municipal obligations at a public
sale if such a purchase is authorized by prior written agreement.
(c) An adviser from purchasing municipal obligations at a private
sale if he has:
(1) Terminated his status as adviser in writing and at or
after this termination the municipality has consented in writing to the
purchase; and
(2) Disclosed in writing to the municipality at or before
this termination the possibility of a conflict of interest on his part
and the source and anticipated amount of all his remuneration, in
addition to his compensation as adviser, with respect to the obligations
to be sold, and the municipality has acknowledged in writing the receipt
of these disclosures.
2. If municipal obligations are to be issued to refund others
already outstanding, no person may accept any compensation for advice
unless the compensation is fixed in advance, but such a person may
purchase the refunding obligations.
(Added to NRS by 1981, 942)
1. A municipality that has issued or proposes to issue municipal
securities in the amount of $10,000,000 or more may enter into an
agreement for an exchange of interest rates as provided in this section
if it finds that such an agreement would be in the best interests of the
municipality.
2. A municipality may enter into an agreement to exchange interest
rates only if:
(a) The long-term debt obligations of the person with whom the
municipality enters the agreement are rated “A” or better by a nationally
recognized rating agency; or
(b) The obligations pursuant to the agreement of the person with
whom the municipality enters the agreement are either:
(1) Guaranteed by a person whose long-term debt obligations
are rated “A” or better by a nationally recognized rating agency; or
(2) Collateralized by obligations deposited with the
municipality or an agent of the municipality which would be legal
investments for the State pursuant to NRS 355.140 and which have a market value at the time
agreement is made of not less than 100 percent of the principal amount
upon which the exchange of interest rates is based.
3. A municipality may agree, with respect to securities that the
municipality has issued or proposes to issue bearing interest at a
variable rate, to pay sums equal to interest at a fixed rate or rates or
at a different variable rate determined pursuant to a formula set forth
in the agreement on an amount not to exceed the principal amount of the
municipal securities with respect to which the agreement is made, in
exchange for an agreement to pay sums equal to interest on the same
principal amount at a variable rate determined pursuant to a formula set
forth in the agreement.
4. A municipality may agree, with respect to securities that the
municipality has issued or proposes to issue bearing interest at a fixed
rate or rates, to pay sums equal to interest at a variable rate
determined pursuant to a formula set forth in the agreement on an amount
not to exceed the outstanding principal amount of the municipal
securities with respect to which the agreement is made, in exchange for
an agreement to pay sums equal to interest on the same principal amount
at a fixed rate or rates set forth in the agreement.
5. The term of an agreement entered into pursuant to this section
must not exceed the term of the municipal securities with respect to
which the agreement was made.
6. An agreement entered into pursuant to this section is not a
debt or indebtedness of the municipality for the purposes of any
limitation upon the indebtedness of the municipality or any requirement
for an election with regard to the issuance of securities that is
applicable to the municipality.
7. Limitations upon the rate of interest on a municipal security
do not apply to interest paid pursuant to an agreement entered into
pursuant to this section.
8. A municipality which has entered into an agreement pursuant to
this section with respect to those securities may treat the amount or
rate of interest on the securities as the amount or rate of interest
payable after giving effect to the agreement for the purpose of
calculating:
(a) Rates and charges of a revenue-producing enterprise whose
revenues are pledged to or used to pay municipal securities;
(b) Statutory requirements concerning revenue coverage that are
applicable to municipal securities;
(c) Tax levies to pay debt service on municipal securities; and
(d) Any other amounts which are based upon the rate of interest of
municipal securities.
9. Subject to covenants applicable to the securities, any payments
required to be made by the municipality under the agreement may be made
from money pledged to pay debt service on the securities with respect to
which the agreement was made or from any other legally available source.
(Added to NRS by 1991, 356)
