Nevada treasurer outlines $2.6 billion debt portfolio, infrastructure bank loans and governor's $150M proposal

Deputy Treasurer Carrie Eaton told the joint subcommittee she was presenting for budget account 1082, the Bond Interest and Redemption Fund (BERF), and described the treasurer's office role in managing state debt and payments.

The treasurer's office oversees a state debt portfolio ‘‘approximately $2,600,000,000’’ covering 18 programs, Eaton said, including about $958,000,000 of self-supporting debt with no general obligation pledge, $293,000,000 of self-supporting debt with a general obligation pledge, and roughly $1,390,000,000 of general obligation debt paid with property tax revenue. Eaton said the BERF receives ad valorem tax revenue, statutory appropriations and interest earnings and pays principal, interest and related professional fees. She said the reserve balance as of June 30, 2024, was ‘‘approximately $307,000,000 or a 24% of fiscal year 2025’s debt service.’’

Why it matters: The treasurer’s presentation framed how the state plans to pay existing and new borrowing and explained sources for bond-related payments and reserves that undergird Nevada’s credit standing.

Chief Deputy Eric Jimenez described the State Infrastructure Bank (SIB), created to provide loans and other assistance only to eligible borrowers under Nevada’s constitutional and statutory limits. ‘‘The state has a constitutional prohibition to investing or lending money directly to private corporations,’’ Jimenez said, and listed eligible borrowers as governmental units, tribal governments, certain charitable and nonprofit organizations and education entities. Jimenez said the SIB can fund water and sewer, renewable energy, public safety, economic development and ‘‘social infrastructure’’ such as childcare, housing and healthcare.

Jimenez said the SIB was initially capitalized in 2021 with a $75,000,000 general obligation taxable bond issuance because the bank could not pre-identify specific tax‑exempt projects. He said after issuance and costs the bank had $74,620,077 in initial proceeds and had approved about $74,502,000 in loans, leaving roughly $118,742 in initial proceeds available; the bank has also earned interest on the funds.

On a recent development, Jimenez described a large SIB loan to support Desert Pines in East Las Vegas. ‘‘The infrastructure bank came in with a loan to an organization called Urban Strategies,’’ Jimenez said, describing Urban Strategies as the nonprofit borrower and McCormick Baron Salazar as the developer partner. He said the SIB loan for that project was $25,000,000 on a 35‑year term at 4.5% interest with an origination fee of $250,000, and that the bank expects repayment well before 35 years as vertical sales/closings occur.

Governor's proposal: Jimenez said the governor’s executive budget proposes $150,000,000 in general obligation bonds for the SIB, split into two $75,000,000 tranches. The first $75,000,000 would follow the SIB’s existing loan model. The second tranche would be coordinated with a proposed Community Infrastructure Investment Fund in pending economic development legislation; Jimenez said the governor’s bill would first allocate $25,000,000 of general fund dollars into that fund and then draw on the GO bond tranche to support rural housing or necessary economic development infrastructure once the initial $25,000,000 is exhausted.

Committee follow-up: Committee members asked for more detail about how affordability was determined, what portion of BERF reserves is interest earnings versus property taxes, the state’s credit ratings and the SIB’s eligibility and forgiveness terms. Eaton said municipal advisors, tax revenue projections and market conditions informed affordability and that she would verify the breakdown of reserve sources. She said Nevada’s credit ratings are ‘‘double A plus, double A plus’’ and that the rating had increased a few years earlier. Jimenez said the SIB has not finalized eligibility rules for possible forgivable or incentive-style lending proposed in the governor’s bill and that the bank expects coordination with the governor’s Office of Economic Development and the SIB board on any new program rules.

What was not decided: No formal actions or votes were taken at the hearing. Several committee members pressed for written detail on SIB loan terms, planned eligibility and the governor’s proposed rural housing carve‑out, and Jimenez offered to provide further documentation.

Ending: The treasurer’s office and SIB officials said they would follow up with additional written details requested by members and with clarifications on reserve composition and eligibility for potential forgivable loans.