WCSD #1

Shall the Board of County Commissioners of Washoe County be authorized to adopt an ordinance imposing an additional one-quarter percent sales and use tax in Washoe County beginning on July 1, 2009, and impose an additional governmental services tax of one-half cent per $1.00 valuation of vehicles based in Washoe County beginning on July 1, 2009, for the purposes acquiring, constructing, improving and equipping school facilities for the Washoe County School District?

Explanation: 
The 2007 Nevada Legislature created the Washoe County Schools Construction and Revitalization Advisory Committee (the "Committee") pursuant to Senate Bill No. 154 ("SB 154").  The Committee recommended the imposition of an additional one-quarter percent sales and use tax in Washoe County beginning on July 1, 2009 (the "Sales and Use Tax") and the imposition of an additional governmental services tax of one-half cent per $1.00 of valuation of vehicles (the "Governmental Services Tax"). A "yes" vote would require the Board of County Commissioners to impose the Sales and Use Tax and the Governmental Services Tax, the proceeds of which would be deposited in the Washoe County School District's fund for capital projects and used for the purpose of acquiring, constructing, improving and equipping school facilities as set forth in NRS 387.335(1).  It is intended that the proceeds of such taxes be used for the revitalization of schools and technology improvements.
A "no" vote would prevent the imposition of such additional taxes at this time.

Argument "In Favor" of WCSD #1

The cost for these projects has outpaced available funding. All other school districts in Nevada, by state law, have one or two additional taxes not available to the WCSD for capital projects. Passage of WCSD-1 would alleviate that disparity and provide an ongoing source for necessary improvements.

Taxpayers in Washoe County want to protect their investment in public school buildings, and they expect a thorough and transparent analysis of this issue. This ballot question resulted from the work of an advisory committee created by the 2007 Nevada Legislature. Four legislators and eleven community members met in public for ten months to examine facility needs. They unanimously concluded that the need to repair, revitalize and upgrade our older schools is vital for this community. 100% of the funds will be used for this purpose.

Oversight of these funds is a 3-tiered process. Recommendations will be presented to the WCSD Board of Trustees. If approved, they will be reviewed by the Bond Oversight Panel on School Facilities, a panel of elected officials and citizens with expertise in construction, accounting and engineering. Washoe County's Debt Management Commission must then approve the sale of the bonds to ensure responsible use of taxpayer dollars.

This proposal will have a modest tax impact. A household in Washoe County can expect to pay only an additional $25.00 per year if it spends $10,000.00 on taxable items in one year, and on average, an additional $14.68 per year on vehicle registration. If we delay this funding, our school buildings will continue to deteriorate, the disparity in the learning environment will increase and the cost to do the work will escalate.

Rebuttal to Argument "In Favor" of WCSD #1

Proponents' argument simply proves the case against passage.  The Washoe County School District has spent every penny of budgeted taxpayer funds on priorities other than maintenance and repair of buildings.  Now they spin a tale of gloom and doom if taxpayers don't bail them out. 

Proponents cite as support for their proposal the unquestioned civic bona fides of members of the advisory committee that recommended the proposed tax increase.  Such members confide privately their distaste at having been convened only to agree on who should be taxed to compensate for WCSD's fiscal irresponsibility but, as civic leaders, dare not say so publicly. 

Proponents' allude, but do not directly admit, that if this proposal passes WCSD Will leverage the anticipated tax revenues into a $395 million dollar borrowing (as widely reported in the media),.  They do not disclose interest costs nor allocation of loan proceeds  to short lived assets. 

WCSD #1 would increase sales taxes and vehicle registration fees.  Such taxes are regressive and impact seniors and low income citizens the hardest.  They could also drive Washoe County voters to Carson City or Douglas County for purchases of vehicles and other goods which would hurt businesses in Washoe County.

Argument "In Opposition" to WCSD #1

WCSD#1 is the latest in a series of "tax grabs" by the Washoe County School District ("WCSD") brought about by its failure to adequately fund for maintenance, repairs, and replacement of its properties.

In Nevada condominium and planned unit development owner associations must hire an independent expert to create an estimate of the costs of replacing structures owned in  common and an estimate of their useful life.  Homeowners must then include in their monthly dues amounts to fund a reserve account so repair and replacement funds are on hand when the need arises (NRS 116.3115(b) & 116.31152).

Washoe County taxpayers "own in common" WCSD's 228 buildings (including 93 schools). WCSD spends 11.38% of its general fund on "operation and maintenance" of personal and real property but allocates nothing to reserves for repair and replacement. WCSD does not follow the prudent practices other property owners do but instead periodically asks voters to approve tax increases to pay for deferred maintenance thereby mitigating its failure to set aside reserves to keep its properties serviceable.

WCSD proposes an increase in sales and vehicle taxes "for the purpose of acquiring, constructing, improving and equipping school facilities".  Its "explanation" repeats the "purpose" language and cites NRS 387.335(1) which authorizes borrowings.  It therefore appears that WCSD intends to use the anticipated tax revenues to support borrowings to fund its capital expenditures.  The ballot language does not disclose how much money WCSD intends to borrow, the loan term in years nor the apportionment of the loan proceeds between real property and "equipping school facilities".  Finally WCSD fails to disclose whether the tax increases will be abated when the borrowings are repaid and doesn't say how much of the proceeds will be spent on short lived items such as "technology improvements".  If there is no sunset on the tax increases WCSD could just continue to borrow without voter approval.

Proponents employ the mnemonic "WCSD" to advocate: "Warm, Connected, Safe, Dry". We think it should be: "Why Confiscate Seniors' Dollars?"  The 1996 school bond  proposal failed by a 55% to 45% vote.  WCSD #1 deserves the same fate. 

Rebuttal to Argument "In Opposition" of WCSD #1

Operating money provided by the State to Nevada's school districts was never intended for, and does not cover, major repairs or replacement of school buildings.  That money must be generated locally.  Unlike homeowner associations, our district must provide new facilities to accommodate new students, and there simply is not enough money from property taxes we currently pay for district capital projects to both build schools plus keep up with all capital repairs and upgrades of older schools, let alone set aside funds in a reserve account.  To solve this problem, the citizens' SB 154 committee recommended modest tax increases to be an ongoing revenue source dedicated to older schools.

The ballot language does not address borrowing money because the legislation allowing this question specified that the question must relate to generation of tax revenue.  The explanation for the question clearly states that the proceeds of such taxes will be used for the revitalization of schools and technology improvements throughout the district's schools.

In 1992, 1998 and in 2002, Washoe County voters, including our senior citizens, strongly supported ballot questions for schools because our community values our children and their education.  WCSD1- Warm, Connected, Safe, Dry. We urge its passage.