The Fernley City Council moved through a largely routine agenda Aug. 5, approving housing assistance support, reaffirming the city’s policy against negotiating water-right dedication requirements and authorizing a grant application for design of a future wastewater treatment plant.
City Treasurer Robert Carson told council members the city had approximately $19 million in general fund cash and investments at the end of fiscal year 2026, while the water enterprise fund held more than $54 million and the sewer enterprise fund nearly $35 million.
General fund revenues were just over $12 million as of June 30, compared with a budget of approximately $13.2 million. Carson said additional revenues, including franchise fees and indirect-cost reimbursements, had not yet been fully posted.
The city originally budgeted for a $4.6 million decrease in general fund balance, largely because of planned one-time projects and capital expenditures. Instead, preliminary figures showed the city roughly breaking even.
Carson said the difference was primarily the result of projects being delayed or carried into the next fiscal year rather than savings from permanently eliminating expenses.
Among the largest carryovers are planning projects, street improvements and work at In-Town Park.
The city’s water and sewer funds also showed revenues exceeding budgeted amounts, although Carson cautioned that depreciation, pension and other year-end accounting adjustments had not yet been posted.
“We’re in a really good spot,” Carson told the council, adding that he expects the final fiscal year numbers to be even stronger than the preliminary report.
Council members also unanimously approved a resolution formally stating that Fernley will not negotiate reductions in water-right dedication requirements for new development.
Interim Chief Development Officer Michele Rambo said developers have increasingly asked the city to accept fewer water rights than required under the development code.
While council members have previously directed staff not to negotiate those requirements, Rambo said staff lacked a formal document to point to when developers continued seeking exceptions.
The resolution gives staff a clear city policy to provide to applicants.
Council members also authorized staff to apply for federal funding for design of the proposed East Wastewater Treatment Plant.
Utilities Director Ozzie Henke said the estimated design cost is approximately $3.07 million. City staff recently met with the U.S. Economic Development Administration and were told the project could potentially qualify for federal funding covering up to 80% of the cost.
The city agreed to provide the required 20% to 40% local match if the grant is awarded.
The wastewater project is intended to provide additional treatment capacity as Fernley grows and reduce future compliance risks with the Nevada Division of Environmental Protection.
The council also approved transferring the city’s unused 2026 private activity bond capacity to Nevada Rural Housing.
Nevada Rural Housing representative Katie Coleman told the council that the organization has helped 874 Fernley homebuyers since 2006, providing approximately $189 million in mortgage financing and $5 million in assistance.
Seven Fernley buyers received approximately $2.4 million in mortgages through the program during the past year.
Coleman also highlighted the organization’s Rural Rocks 20K program, which now offers up to $20,000 in assistance to qualifying homebuyers regardless of employment category.
In another development-related item, the council heard the first reading of an ordinance creating a “minor conditional use permit” process.
Associate Planner Lisa Warner said the new process is intended primarily for small businesses moving into existing buildings where no new construction or development is required.
The application would still go before the Planning Commission, but applicants could avoid some engineering review costs, making the process less expensive for businesses, particularly along Main Street and in downtown Fernley.
City staff also reported progress on several internal and infrastructure matters.
Chief Operating Officer Barry Williams said the city has launched its new Parks and Recreation Department and continues recruiting for a public works director. Two new engineering employees are scheduled to begin Aug. 17.
The city has also hired a new public information officer, who is expected to start Aug. 17.
Lyon County Sheriff’s Chief Deputy Mitch Brannigan reported no significant recent law enforcement incidents in Fernley and said additional patrols in several problem areas appear to be reducing violations.
The Sheriff’s Office also received two new radar trailers and 20 lidar speed-detection devices with assistance from the city.
The council’s next regular meeting is scheduled for Aug. 19.
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