What have the accomplishments of Reno Mayor Hillary Schieve been?

The Mayor’s most visible supporter Richard Jay periodically posts a long list of the alleged accomplishments of Mayor Schieve on social media in response to negative posts or comments from detractors.

Richard challenges doubters to “deny any of this with facts”.

The list of alleged accomplishments is so long that debunking all of it would take more time that anyone has, but I can pick a few items and provide facts for them.

Mr. Jay says that Reno Mayor Hillary Schieve “reduced debt by approximately $385 million with the reduction over the last years being the fastest reduction in the history of Reno.”

How could Mr. Jay know how fast debt was reduced in comparison to previous Mayors? Reno budgets are only available online back to 2005/2006. Schieve has been Mayor since 2014. That’s not much history to look into.

Richard says that previous Mayors added close to $1 billion in debt. According to the 2014 budget “the City of Reno’s total debt now stands at $515 million, which has decreased by more than $130 million from the 2009 high point, which was $648 million.”

$648 million isn’t $1 billion. Mayor Schieve started with $515 million in debt. The $130 million in reduction happened before she was Mayor.

As of July 1, 2024, in the Budget the City of Reno reported a total debt of $494 million. This figure encompasses various obligations, including general obligation bonds and other forms of municipal debt. That doesn’t look like much of a reduction since 2014.

Richard says there was debt for RETRAC of $220 million from previous city councils. He goes on to say that “the downtown trench financing had some of the highest rates ever and was financed where no principal was paid, it was interest only, until Mayor Schieve and her council changed that.”

How does Richard know that the original bonds were interest only? There is no information on the original bonds from 2002 and they were refinanced in 2008 and again in 2018 so they don’t exist on bond markets. It is typical for municipal bonds to pay interest until they mature and then the principal is paid.

Interest rates in 2002 were not high. In 2002, municipal bond interest rates varied based on the bond’s credit quality and maturity. According to data from the U.S. Department of Commerce, the average yield on high-grade municipal bonds (rated Aaa by Moody’s) was approximately 3.10% for the year.

Richard says that “-RETRAC bonds (were) refinanced and separated into A,B,C and D tranche. All have principal reductions starting immediately, something previous council did not do. “

The City of Reno refinanced the RETRAC bonds in 2018. The outstanding balance in 2018 was $230,730,310 and in 2024 it was $204,032,985. They are due in 2058. It looks like the main reason to refinance was to extend the maturity date for when the bonds need to be repaid.

It is typical for Tax Incentive Financing (TIF) bonds to pay principal and interest and Reno has a lot of that kind of debt. According to the 2024 Budget Reno is obligated to pay $398,265,717 in principal and $1,053,171,175 of interest for Governmental Activities which are bond debt and installment payments over the next 30 years. Reno pays $37,940,030 annually to service existing debt.

I wrote about the TIF and STAR bonds in my article “Reno is Giving Away Tax Money.”

Richard references the news about the Renova. “Jacobs Entertainment unveils the new Renova units, site of the old Crest Motel. Former owners charging $350 per week for flea ridden, coach roach filled and black mold laden units.”

Richard references news about how Jacobs“-Demolished old dilapidated motels. Other motels are being renovated as affordable housing and much cleaner sites.  Preserving part of Reno’s past. “

Out of 18 motels that were demolished only the Crest Motel was renovated into the Renova. There has been no development progress across the remaining 100 lots that Jacobs acquired. Jacobs has attempted to attract joint venture partners or to sell these properties, but there has been no progress since 2017.

I cover the motels and other details on Jacobs in my article “The Neon Line: Promises Unfulfilled”.

When one is engaged in public discourse or debate it is up to the one making the claim to provide the facts.

Richard Jay is an insider with Mayor Schieve, and is on a number of boards and commissions, including the Reno-Tahoe Airport Authority Board of Trustees where he was appointed by the Mayor, the Reno-Sparks Convention and Visitors Authority where he is Vice Chair, and Richard has a history of service on the City of Reno Financial Advisory Board.

If the claims that he makes on social media are factual then Richard should back them up with facts that he should have access to, if they exist, and not try and put the burden on residents who lack the time and resources to investigate his cheer leading for the Mayor.

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