Carson City tax ballot questions for road funding heading to RTC

Two tax proposals to raise money for neighborhood streets are headed to the Carson City Regional Transportation Meeting on Wednesday.

The meeting will take place in the board room of the community center and will follow the Carson Area Metropolitan Planning Organization meeting that starts at 4:30 p.m.

The RTC is expected to make a recommendation to the Board of Supervisors on potential ballot questions for November including a new sales tax measure and a supplemental governmental services tax measure that would need voter approval.

The city has been exploring ways to fill a $21 million annual gap between existing funding and maintenance needs. A 0.25 percent sales tax could generate $4 million to $4.5 million a year, according to Transportation Manager Chris Martinovich.

“NRS 377A.020 authorizes the board to enact an ordinance imposing a sales tax in Carson City at a rate of up to one-half of one percent (0.5%) for the purposes of maintaining a public transit system, for the construction, maintenance, and repair of public roads, for the improvement of air quality, or for any combination of those purposes as described by NRS,” reads a staff report. “Carson City previously enacted a sales tax of 0.25% via CCMC Chapter 21.04, meaning there is an additional 0.25% in potential sales tax revenue available.”

The supplemental governmental services tax, on the other hand, would operate like the state’s basic governmental services tax paid during vehicle registration, and it could raise $2 million to $2.5 million a year, according to Martinovich.

NRS 371.045 states: “A board of county commissioners of a county whose population is less than 100,000 or is 700,000 or more may by ordinance, but not as in a case of emergency, after receiving the approval of a majority of the registered voters voting on the question at a primary, general or special election, impose a supplemental governmental services tax of not more than 1 cent on each $1 of valuation of the vehicle for the privilege of operating upon the public streets, roads and highways of the county on each vehicle based in the county…”

The whole NRS chapter can be viewed online: https://www.leg.state.nv.us/nrs/nrs-371.html.
The revenue from the supplemental tax would be distributed to Carson City, but a portion would go to state administrative costs, which Martinovich estimated to be 2- to 6-percent.

Martinovich said the supplemental tax option was examined in 2021 but then put on the proverbial backburner. During a public hearing in November that explored general improvement districts, a member of the public brought the idea back up, Martinovich said.

Roads in Carson are currently funded by existing fuels and sales taxes. In 2016, a ballot measure to raise the tax on gasoline failed. In 2022, voters supported retaining a 5-cent-per-gallon tax on diesel fuel.
“Carson City’s annual budget for roads is approximately $4.5 million,” reads a staff report.

The report says the tax options, if approved, won’t fill the full funding gap but will be a “critical addition.”

In other action:
• The RTC will consider an approximately $1.8 million contract with Sierra Nevada Construction for the East Fifth Street Pavement Project.

“This contract is for all labor, materials, tools, and equipment necessary for project improvements, which include concrete sidewalk and curb ramp reconstruction, full roadway reconstruction, pavement preservation, and landscaping on East Fifth Street between Fairview Drive and Marsh Road,” reads the agenda.

• The RTC will review a request to the city’s congressional delegation seeking $3 million in community project funding (CPF) for the 5^th Street Roundabout Improvement Project.

The request would be aimed at federal fiscal year 2025 and would fund “the reconstruction and enhancement of the roundabout located at the intersection of 5th Street and Fairview Drive,” according to a staff report.

“The project also includes pavement and utility replacement as well as modifications to the surrounding multi-use path network,” the report says. “The project improvements would benefit the citizens of Carson City, as well as multiple stakeholders, including Carson City Public Works, the Carson City School District, the Nevada National Guard, and the State of Nevada by providing improved traffic circulation, reducing congestion, and constructing sustainable infrastructure in eastern Carson City.”

• The RTC will consider of a letter of intent and grant application to the Nevada Department of Public Safety’s Office of Traffic Safety (OTS) for $13,333.

“The OTS is requesting LOIs and applications for the grant to fund projects that reduce fatal and serious injury crashes in our communities and on Nevada’s roads,” the agenda says. “Staff is seeking approval to submit a LOI and grant application to support a safety campaign in the amount of $13,333. This grant is a federally funded program through the National Highway Traffic Safety Administration (NHTSA) and requires a minimum of a 25% local match. Grant applications will be accepted through March 15, 2024.”