Reno, Nev. redevelopment officials are trying to come to a compromise with Washoe County over tax revenue in order to make debt service requirements.
The city’s redevelopment agency has a $1.9 million debt-service payment due next week and is in talks to try get more tax revenue in order to make the payments, according to the Reno Gazette-Journal.
The newspaper said Reno, Washoe County, the Washoe County School District and Nevada this week were considering a tentative agreement that would send enough tax revenue for the RDA to pay debt service until it ends in 2017.
The dispute is over the methodology for the calculation of taxes due to the RDA.
Nevada Attorney General Catherine Cortez Masto and the Washoe County district attorney have issued conflicting opinions on the issue of whether the county owes the redevelopment agency more money.
The city has already cashed out its surety from National Public Finance Guarantee Corp. to make payments on the bonds.
Last fall, Standard & Poor’s lowered its underlying rating to CC from BB on $36.5 million of the RDA’s senior-lien Series 2007A taxable and 2007B tax-increment bonds.
It also lowered the underlying rating to CC from BB-plus on the agency’s Series 1998F superior-lien tax increment bonds.
S&P said the redevelopment agency has suffered a dramatic decline of assessed values since the last decade’s recession.