Tuesday, March 11, 1997 | 11:59 a.m.
Tourism and Washoe County officials on Monday said the agency improperly used money reserved for bond payments to help pay operating expenses, the Reno Gazette-Journal reported.
That violates financial agreements with bond holders as well as state law.
RSCVA finance director Ed Beaver said the agency used about $1.3 million in bond payment money in December and January to meet payroll and other operation expenses.
"We knew it was something we shouldn't do," Beaver said. "But we had no other funds to go to."
Tourism officials said they expect to be able to make the next bond payment of $5.3 million when it is due on July 1.
The county learned of the financial situation as it was preparing to issue a $10 million capital improvement bond.
County officials expressed concern because RSCVA bonds are sold using the county's bond rating.
Any shortfall in meeting the bond payment would have to be made up from the county's general fund.
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