Cit y of Reno, nevadaP o P u l a R a n n u a l f i n a n C i a l R e P o R t t o o u R C i t i z e n s

Fiscal Year Ending June 30, 2012

Reno.gov

Vision:“The Biggest Little City in the World” offersexceptional quality of life, culture, and a vibrant, diverse economy.

Mission: To efficiently provide the highest level of services responsive to our community and to enhance the quality of life and economic vitality.

Reno City Council Strategic Priorities for Fiscal Year 2013-14:• Enhance Communications and Community Engagement

• Provide Efficient and Responsive City Services

• Provide Safe and Livable Neighborhoods

• Promote a Sustainable and Vibrant Economy

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Table of Contents__________________

The Reno Vision 1

A Letter from Finance 2

Reno’s History 3-4

Reno’s Finances 5

General Fund Performance 6

Outstanding Debt 7

Historical Look at Trends 8

Accomplishments 9Popular Annual Financial Report published in February 2013.

Reno’s finanCesa let teR fRom finanCe

foR fisCal yeaR ending June 30, 2012

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This Popular Annual Financial Report (PAFR) is a brief summary of the City's Comprehensive Annual Financial Report (CAFR). This report is intended to increase knowledge and transparency throughout the community on the City of Reno's financial condition. As such, this report is written in a manner that will summarize and communicate, in a user-friendly manner, the City’s financial condition.

The financial information within this report is taken in large part from the City's independently audited set of financial statements. The City of Reno's financial statements have been audited by Piercy Bowler Taylor & Kern, Certified Public Accountants & Business Advisors. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Reno’s financial statements for the fiscal year that ended June 30, 2012, are fairly presented in conformity with generally accepted accounting principals.

We are proud to say that the City’s CAFR has been awarded a Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for each of the past 27 years. The independent auditor’s report as well as the full CAFR, is available from the City of Reno’s website at Reno.gov. Unlike the CAFR, the PAFR is not prepared in accordance with generally accepted accounting principles.

I welcome your feedback regarding the information included in this report.

Respectfully Submitted,

Robert ChiselFinance Director, City of Reno

Reno’s finanCesa let teR fRom finanCe

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Reno, Nevada, the largest community in Northern Nevada and the fourth largest city in the state, began as “Lake’s Crossing” in 1859 at a toll bridge for pioneers crossing the Truckee River on their way to California. In 1868, the Central Pacific Railroad established a town site in the area as a new stop in the growing transcontinental railroad. The City was incorporated in 1903. It is located in the southern part of Washoe County, nestled in the Sierra Nevada 35 miles northeast of Lake Tahoe, in the area called the Truckee Meadows. The City was named after Civil War General Jesse Reno.

The City has a Council-Manager form of government with six Council members elected for staggered terms of four years. The Mayor is the chief, elected, official and formal representative of the City. Elected at-large, the Mayor serves for a four-year term. The City Manager is selected by the Council and is the City’s chief administrative official. The Manager is responsible for all City business.

The City provides the full range of municipal services as established by statute or the City’s charter. These services include public safety (police, fire, and building inspection), public works, public improvements,

Reno’s HistoRya bRief Review of ouR gReat Cit y

foR fisCal yeaR ending June 30, 2012

parks and recreation, wastewater treatment, and general administrative services. In addition to general government activities, the City Council is financially accountable for the Redevelopment Agency of the City of Reno.

The City of Reno maintains budgetary controls to ensure compliance with legal provisions as part of the annual appropriated budget, as augmented, that was approved by the City Council and the State of Nevada’s Department of Taxation. In April, the Interim City Manager submitted a tentative budget for the fiscal year to the City Council, the Nevada Department of Taxation and the citizens of Reno.

The Nevada Department of Taxation notifies the City Council as to whether the budget is in compliance with the law and appropriate regulations. Public hearings, at which all changes to the tentative budget are discussed, are conducted on the third Tuesday in May. The City Council adopts the budget prior to June 1st and submits it to the Department of Taxation for final approval. Activities of the General Fund, special revenue funds, debt service funds, capital project funds, enterprise funds, and internal service funds are included in the annual budget.

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Left to Right: Council Member Neoma Jardon, Ward 5; Council Member Sharon Zadra, Ward 2; Coun-cil Member Oscar Delgado, Ward 3; Robert A. Cashell, Sr., Mayor; Council Member Dwight Dortch, Ward 4; Council Member Hillary Schieve, At-Large; Council Member Jenny Brekhus, Ward 1

Nickname: Biggest Little City in the WorldAverage Precipitation: 7.29 inches of rain, 23.1 inches of snowElevation: 4.400 feet above sea levelSunny days: 79%Population: 227,511Average Household Size: 2.47 personsMedian Household Income: 3-person household - $64,000, 4-person household - $71,000Median Home Price: $185,000 (June 2012)Total Assessed Property Valuation: $5,939,927,777 (FY 12-13)Washoe County School District: Elementary Schools - 30, Middle Schools - 8, High Schools - 7Colleges and Universities: 4Airports: 2Parks: 86,2,477 acresNearby Golf Courses: 50Nearby Ski and Cross Country Resorts: 17

Reno Facts

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Reno’s finanCesbReakout by fund t yPes

foR fisCal yeaR ending June 30, 2012

Reno’s geneRal fundin moRe detail

foR fisCal yeaR ending June 30, 2012

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Sources of Revenuefor Year Ending June 30, 2012

Property taxes 58,748,573Room and construction taxes 7,565,981Special assessments 3,152,638Franchise fees 22,710,178License, permits and other fees 15,587,952Consolidated taxes 40,909,269Intergovernmental revenues 43,259,338Downtown District room surcharge 2,003,432Charges for services 97,808,828Fines and forfeitures 5,365,098Miscellaneous 12,070,723Other Financial Sources/(Uses) 6,389,834

Beginning Fund Balance __________ Total Revenues 315,571,844

Expense by Type for the Year Ending

June 30, 2012

Operating Expenses 258,409,628Capital Outlay 21,090,684Debt Service 36,360,118

Ending Fund Balance __________Total Expenses 315,860,430

Reno’s finanCesbReakout by fund t yPes

foR fisCal yeaR ending June 30, 2012

Total Budgeted Employees General Government 123.50Judicial 56.50Public Safety 676.50Public Works 116.45Parks, Recreation and Community Services 175.85Community Support 40.50 Utility Enterprise 66.30 _______Total Employees 1,255.60

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Final Budget Actual Revenues Property taxes 44,157,903 44,186,879 Special assessments 1,493,032 1,520,212 Franchise fees 24,853,089 22,710,178 License, permits and other fees 14,866,791 15,153,606 Consolidated taxes 40,400,000 40,909,269 Intergovernmental revenues 21,378,551 20,832,964 Charges for services 12,924,971 13,158,940 Fines and forfeitures 3,454,898 2,635,287 Miscellaneous 3,962,726 2,842,734 __________ _________Total revenues 167,491,961 163,950,069 Expenses General Government 16,177,096 15,597,700 Judicial 6,487,002 6,425,982 Public Safety 104,041,728 102,800,240 Public Works 5,850,320 5,854,207 Parks and Recreation 9,033,932 9,041,888 Planning/Community Devel. 3,100,571 3,093,685 Other 8,689,009 8,772,774 Total expenses 153,379,658 151,586,476Excess of Revenues over Expense 14,112,303 12,363,593 Other Financing Sources Capital asset disposal proceeds 1,250 20,182 Transfers in 1,953,905 1,946,742 Transfers out (13,519,478) (13,329,478) Totalotherfinancingsoures(11,564,323)(11,362,554) __________ __________Increase in Fund Balance 2,547,980 1,001,039

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A general obligation bond is a common type of municipal bond that is secured by the City of Reno’s pledge to use legally available resources, including tax revenues, to repay bond holders. All general obligation bonds in Nevada are "limited tax" obligations. The maximum ad valorem tax that can be levied for all purposes, by all overlapping entities, is $3.64 per $100.00 by statute ($5.00 per $100.00 by constitution) and this includes levies for bonded indebtedness.

A tax increment or redevelopment bond is generally issued as a special obligation. In Nevada, these obligations are payable from taxes allocated to a redevelopment agency. The payment is made from gains in ad valorem taxes above the base year. For the City of Reno Redevelopment Agency, the base year was 1987.

A revenue bond is secured only by a designated "special" fund, which consists of monies from a designated source not derived from ad valorem taxation. Some of the revenue bonds for the City are secured by sales or room taxes.

Sales Tax Anticipation Revenue (STAR) Bonds are issued by cities to finance various tourism and entertainment projects and real or personal property suitable for retail, tourism or entertainment purposes, among other things. In connection with STAR Bonds, the municipality may pledge up to 75% of statewide mandatory sales taxes (6.5%). General obligation pledges or pledges of other revenues or the general fund are prohibited. The City of Reno has two STAR Bonds that were issued for the Cabela’s project in 2007 for a combined total of $34,700,000, which is included with the total of revenue bonds.

Reno’s outstanding debta geneRal exPlanation of debt t yPes

foR fisCal yeaR ending June 30, 2012

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A special assessment bond is a payable from "special" assessments levied against property within the City that specifically benefits by installation of the improvements financed with the bonds. Most frequently these types of bonds are used, for example, on a street paving project or sidewalk project.

Outstanding Debt Obligationson June 30, 2012

General Obligation Bonds 144,267,053Revenue Bonds 383,119,940Special Assessment Bonds 36,782,800Tax Allocation Bonds 35,432,275 __________ 599,602,068

Reno’s outstanding debta geneRal exPlanation of debt t yPes

foR fisCal yeaR ending June 30, 2012

CTX Distribution

The Ad Valorem Tax (according to value) refers to the property tax system. Real property taxes are paid by the owners of land, buildings and other improvements which are permanently affixed to land. Personal property taxes are paid by all entities owning, renting, leasing, or controlling business personal property. The tax is based on the value of the property for both real and personal property. Currently, the State Constitution caps the property tax rate at $5.00 per $100.00 of assessed value. It is further capped by statute at $3.64 per $100.00 of assessed value. Property in Nevada is assessed at 35% of its taxable value.

Ad Valorem Tax

Consolidated Tax Distribution (CTX) was implemented in 1997 as a way to combine the distribution of six different tax types into one monthly distribution. The com-ponents of the CTX include: Cigarette Tax; Liquor Tax; Government Services Tax; Real Property Transfer Tax; Basic City County Relief Tax; and Supplemental City County Relief Tax. Each tax type may have various distribution formulas which are applied.

a HistoRiC look baCktRends in taxes ReCeived

foR fisCal yeaR ending June 30, 2012

55,000,000

50,000,000

45,000,000

40,000,000

35,000,000

30,000,000

64,000,000

62,000,000

60,000,000

58,000,000

56,000,000

54,000,000

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Reno is now the“Smartest Little City in the World”.

IBM honored the City of Reno with a Smarter Cities Grant. It chose Reno to be among 100 other cities around the world to receive this prestigious grant.

The grant, which provides professional consulting and services, is valued at $400,000. It will pay to develop sophisticated software with real-time data, which will provide citizens and developers complete access to information on properties within the city.

Reno’s committed to being more open.

The City’s Open Government site is our first step at being more transparent about what goes on behind the walls of Reno’s government.

The City is encouraging residents to participate in the public process to solve important problems that affect neighborhoods and the business community.

Releasing government data is an important part of this effort. This site is in a centralized area where anyone can also see information that is already available online.

Reno secured a Staffing for Adequate Fire and Emergency Response

(SAFER) Grant to pay firefighters’ salaries.

The City of Reno received a $14 million federal grant that will pay the salaries of 64 firefighters through June 2014.

Firefighters faced layoffs after the deconsolidation of the Reno Fire Department and the Truckee Meadows Fire Protection District. The grant not only saves jobs, but also gives the City the ability to reopen fire stations that closed during the downturn in the economy.

The grant has a positive impact on the safety of the entire community.

Apple Inc. is coming to Reno-Sparks.

Apple Inc. is building a 350-acre data center east of Sparks to house its iCloud and iTunes services, as well as a business and purchasing center in downtown Reno.

Apple Inc., plans to invest about a $1 billion in Northern Nevada over the next 10 years.

CuRRent yeaR aCComPlisHmentsimPRovements in tRansPaRenCy and oPeRation

foR fisCal yeaR ending June 30, 2012

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Reno.gov

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Clockwise from upper left: Golfer at Rosewood Lakes Golf Course, Kayaker in the Truckee River Whitewater Park at

Wingfield,GreatRenoBalloonRaces,TahoeSnowflakesattheopeningnightoftheRinkontheRiver.

Reno.gov