Supervisors set hearing on V&T, substation bonds
The public will get its chance to comment on two major bond proposals when the Carson City Board of Supervisors meets Thursday.
Capital-improvement bonds to pay for a new sheriff’s administration building, among other projects, and those to construct the V&T Railroad are scheduled for public hearings the morning of the meeting.
City Finance Director Tom Minton said the capital-improvement program will require a total of $26 million in funding. The largest single project is construction of a new administration building for the Sheriff’s Department at more than $12 million.
Minton told the board in February the city should be able to pay off at least the cost of the sheriff’s building by using revenues now dedicated to the city parks and fire department bonds, which will be paid off in 2006 and 2007 respectively.
The remainder of the bonds, however, may require a 2 cent property tax increase if sales tax revenues don’t grow enough to cover debt service.
The 46,000-square-foot building will be built adjacent to the existing administration building, which will be demolished when the new facility is finished and turned into parking for the new structure. The existing building is more than 40 years old.
Another $5 million will buy the rehab center on Long Street from Carson-Tahoe Hospital and convert it into a city Health Services Center. The cost of the building is $4.5 million, with the rest of the money earmarked for remodeling.
The building will consolidate substance-abuse programs, public health nursing, health services and related agencies in one place.
Minton said $8 million will be set aside for economic development projects. About $3.6 million of that is to help Dick Campagni build a new auto dealership in South Carson City. He plans to move his Toyota dealership into the new building, which will enable him to expand his other dealerships.
With the city’s help, Campagni has guaranteed he will remain in the capital city at least 15 years.
The V&T Railroad bonds will total $15 million and pay Carson City’s share of reconstructing the historic railway between Virginia City and the capital.
Minton said the proposal would pay off the bonds by raising sales taxes an eighth of a cent, generating about $1.25 million a year.
The total cost of the project is estimated at $34.2 million. Two years ago, the project got $4 million in bonds paid for by room taxes to help pay for the Overman Pit portion of the reconstruction. In addition, Sen. Harry Reid, D-Nev., put about $10 million in this year’s federal highway bill for the V&T, and the project received $500,000 from the state of Nevada.
Supervisors have tentatively scheduled a vote to enact the tax in October.
Minton said they hope to sell the bonds before the end of the year.
n Contact reporter Geoff Dornan at email@example.com or 687-8750.
If you go:
What: Carson City Board of Supervisors meeting
Where: Sierra Room of the Community Center, 851 E. William St.
When: about 8:35 a.m. Thursday