Most people, even law makers, have no real idea what a GID really is. Sure they know it is some form of local government¹. And some type of “political subdivision.”² Formed by the Legislature in 1959³. And yes, they may know that the acronym “GID” stands for “general improvement district.”⁴ But what do these words really mean? What type of local government are we talking about? What powers do GIDs have? And if not “general governmental powers,”⁹ how do a GID’s powers differ from those of a true municipality such as a county or city? Where does the money come from to financially support a GID’s operations? And where does one go to learn the answers to these and other related questions⁵?

Although GIDs are limited purpose⁶ special districts², what do these words really mean? Back in 1977 the subcommittee appointed by the legislative commission created “to conduct a study of the methods of creating, governing and financing general improvement districts in Nevada learned…there is…confusion over the legal definition…(and) the definition in NRS 308.020 (really) provides no assistance.”⁷ Given special districts exist to provide limited, specific services⁸ [along the lines of vector control (mosquitos), library, fire, water, sewer and cemeteries] as opposed to general municipal type police powers⁹, insofar as GIDs are concerned, the subcommittee found these versions of “special district” exist primarily to provide services their county of formation (for IVGID it was Washoe County) is unable or unwilling to furnish¹⁰ to real property¹¹.

So now you know!

1. According to NRS 318.075(1), “a governmental subdivision of the State of Nevada, a body corporate and politic and a quasi-municipal corporation.”
2. NRS 41.0305 instructs that “the term political subdivision includes…any…special district that performs a governmental function, even though it does not exercise general governmental powers.” NRS 308.020(2) instructs that GIDs as well as “any other quasi-municipal corporation(s) organized under the local improvement and service district laws of this State” are “special districts.”
3. See pages 457-458 of Chapters 318-319, SB 20, 1959 Statutes of Nevada.
4. NRS 318.020(4) instructs that the words “general improvement district…mean…any general improvement district organized or, in the case of organizational provisions, proposed to be organized, pursuant to this chapter.”
5. After all, if one wants to learn about Nevada’s Open Meeting Law (“OML”) [see NRS 241.010, et seq.], the Office of the Attorney General (“OAG”) has created a Manual for this purpose. Similarly, if one wants to learn about Nevada’s Public Records Act (“NPRA”) [see NRS 239.001, et seq.], the State has created a Manual for this purpose. So where is the manual for GIDs?
6. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
7. See page 28 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada’s (“LCB’s“), Creation, Financing and Governance of General Improvement Districts, September 1976 Bulletin 77-11 (“LCB Bulletin 77-11“)].
8. For a discussion of the limited facilities and services GIDs are authorized to furnish, the reader is directed to our discussion on this topic.
9. Those incredibly broad powers related generally to “[p]ublic safety…health, morality, peace and quiet, (and) law and order” [see Berman v. Parker, 348 U.S. 26, 32, 75 S.Ct. 98 (1954)].
10. See ¶II at page 8 of LCB Bulletin 77-11.
11. Take a look at NRS 318.116. This is the statute which expressly declares the basic powers a GID may exercise. To make the case GIDs furnish services “required by the owners of…real property” [see NRS 318.258(9) – “(b) the district can provide the services required by the owners of the real property;” and, “(c) the owners of the real property pay the costs of providing the facilities”], consider the following basic powers they may furnish: electric light and power [NRS 318.116(1)]; streets [NRS 318.116(7)], curbs, gutters and sidewalks [NRS 318.116(8)]; street lighting [NRS 318.116(12)]; storm drainage and flood control [NRS 318.116(10)]; energy for space heating [NRS 318.116(18)]; water [NRS 318.116(15)]; sewerage [NRS 318.116(11)]; the collection and disposal of garbage and refuse [NRS 318.116(13)]; fencing [NRS 318.116(16)]; fire protection [NRS 318.116(17)]; control of noxious weeds [NRS 318.116(20)]; and, the extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica [NRS 318.116(2)].

    Consider the Incline Village General Improvement District’s (“IVGID’s”) Board’s recognition that “each parcel assessed [the Beach (‘BFF’) and/or Recreation (‘RFF’) Facility Fee]…is specifically benefited” by the District’s recreation facilities for which it is assessed [see ¶4 at page 229 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“). As well as ¶4(c) at page 230 of the the 5/26/2022 Board packet which recites that “the availability of the use of IVGID’s (recreation facilities is a)…benefit…which inure(s) to said real properties“]. Doesn’t the fact real property is benefited mean those basic power(s) granted accrue to real property?

    Consider that “all rates, tolls (and) charges (adopted for these services) constitute a perpetual lien on and against the (real) propert(ies) served” [see NRS 318.197(2)]. And, that “the amount of…charges (elected to be collected on the tax roll)…constitute a lien against (each) lot or parcel of land against which the charge has been imposed” [see NRS 318.201(10)]. Therefore, “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists…is not currently being charged for services provided…(IVGID’s) board…of trustees…may adopt a resolution…to charge the owner…for the services provided” (see NRS 318.203).

    Finally, consider that “all owners of inhabited property in the district (are compelled) to use (and pay for) the district’s system for the collection and disposal of sewage, garbage and other refuse” [see NRS 318.170(1)(b)]. And, when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges…collected on the tax roll…it…cause(s) a written report to be prepared…which…contain(s) a description of each parcel of real property receiving such services and facilities and the amount of the charge for each parcel for such year” [see NRS 318.201(1)].

    Take a look at the District’s trash Ordinance No. 1, sewer Ordinance No. 2, and water Ordinance No. 4. Who does IVGID ultimately look to for payment of these services it provides or the contracts it enters into with a third party collector to provide to real property? According to ¶5.9 of Ordinance No. 1, ¶14.05 of Ordinance No. 2, and ¶9.06 of Ordinance No. 4, “all charges, fees and amounts due and payable shall be billed to the owner of the premises, whether or not the owner is also the occupant.”

    What about IVGID’s recreation Ordinance No. 7? Who does IVGID ultimately look to for payment for the mere availability to access and use the recreational facilities and services it furnishes? According to ¶43 of Ordinance No. 7, parcels of real property rather than the persons who are the ones eligible to access and use the same (i.e., “privileges”). Accordingly, that access and use are pre-conditioned upon a real property’s payment of “all property taxes, special assessments and recreation fees…for the current and prior years.”

    What about the beach facilities and services IVGID provides to the owners of those local parcels of real property with beach access? Again, access is pre-conditioned upon payment of the BFF local property/dwelling unit owners with beach access are obligated to pay.

    What about the defensible space services IVGID provides? 50% of the cost is included in the water rates, tolls and charges local property owners are obligated to pay [see page 55 of the 2021-22 Annual Comprehensive Financial Report (“2021-22 ACFR“)], and the other 50% is included in the RFF local property/dwelling unit owners are obligated to pay (see page 56 of the 2021-22 ACFR).

    What about when the assets of a GID are proposed to be merged into an incorporated city? It is the vote (i.e., “protest”) of local parcel owners within the district which shall determine whether to complete dissolution, merger or consolidation [see NRS 318.495(2)].

    What about voting for/against Board trustees [see NRS 318.0951(1)] or general obligation bonds [see NRS 350.020(1)]? At least up until 1977 (when the Legislature was under the mistaken belief it was unconstitutional for nonresident parcel owners to vote in elections notwithstanding their obvious primary interest therein), local parcel owners (aka “taxpaying electors”) were qualified to vote [see former NRS 318.09525].

    In all of these examples, it is or was the owner of real property who is or was ultimately charged with and protests or protested all of the services and facilities IVGID provides or provided to real property.