Many are of the opinion all local governments are authorized to adopt any “fees” of their choosing simply because they are “governments.” In fact, this opinion seems to extend to monetary exactions which really aren’t “fees” at all. Simply because someone has chosen to assign the “fee” label. But such opinion is not warranted. As stated elsewhere, GIDs are limited purpose special districts along the lines of vector control (mosquito), library, fire, water, sewer and cemetery districts. That means they exist to perform very limited functions. Since each Sate defines for itself what powers it grants to local governments, the questions here are: what powers do GIDs have to fix rates, tolls and charges; and, what rates, tolls and charges may they fix? In Nevada GIDs are creatures of statute and that/those statute(s) are set forth at Title 25¹ of Chapter NRS 318. So to answer the questions posed,

“Furnish services pertaining to any such basic power…the district may exercise,”²

NRS 318.210: Given NRS 318.210 instructs that the District is expressly authorized to:

Fix “rate(s and)…charge(s)” for access to and use of these services because fixing rates and charges is a “right…and power…incidental to or implied from (a) specific power (i.e., furnishing services)…granted in…chapter” NRS 318³,

NRS 318.197(1): provides that GID Boards are permitted to:

“Fix, and from time to time increase or decrease (various)…rates, tolls or charges other than special assessments.” And those exactments may “includ(e), but not be limited to, service charges and standby service charges, for services or facilities furnished…charges for the availability of service, annexation charges, and minimum charges.”

Rates, Tolls And Charges Are Equivalent to “Fees:” We believe “rates,” “tolls and charges” are really different names for “specific services” for which “fixed price(s are) charged.”⁴ Also known collectively as “fees.” Individuals and businesses pay fees for a wide variety of reasons. 

“Fees“ Are The Product of “Exchange Transactions:” Typically, fees are associated with some type of transactional relationship, or the product of an “exchange transaction.”⁵ In other words, pay a fee and realize a particular good or service. Like the cost of a round of golf at one of the District’s golf courses. Or, a lift ticket at Diamond Peak.

In Incline Village/Crystal Bay, The Term “Fee“ Includes Standby Service Charge For The Availability to Use Public Recreation Facilities And The Beaches: The term “fee”⁶ is expressly used by staff and the Board to describe “standby service charges”⁷ assessed “for…the (mere) availability of the use of…services and facilities furnished by the district.”⁸ In fact all of the “rates” and “charges” the District is authorized to fix, and in fact fixes, are presumably fees when they are associated with transactional relationships. Similarly, given the District is expressly authorized⁴ to furnish all sorts of facilities⁹, for the same reasons, its Board is authorized to fix “rate(s and)…charge(s)” for access to and their use.

NRS 244.137(2): NRS 244.137(2) instructs what kinds of “fees” a GID may adopt:

“In Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule¹⁰ to county, city and other local governments,”¹¹ the Rule¹² instructs that: a local government’s powers are limited and only extend to those which are: 1) granted in express words; 2) necessarily implied or…incident to…powers expressly granted; and, 3) absolutely essential to the declared objects and purposes of the (municipal) corporation – not simply convenient, but indispensable¹³. The rule also states that any reasonable doubt by the court as to whether a power has been granted will be ruled against the local government.”¹⁴

Notwithstanding,

There is an “absence of (reported cases) involving (the powers of) special districts” in light of Dillon’s Rule. This “absence…most probably…stems from the fact…such districts are created to carry out relatively narrow, statutorily specified purposes with the method of financing those activities also prescribed by the underlying statute. This is far different from the situation Nevada cities and counties face: an increasing myriad of functions imposed by the state or federal governments, with a taxing regime almost fully centralized and controlled by the state government.”¹⁵

Be that as it may, since by its express words the Legislature has created the GID law¹⁵, which includes the express statutory provisions noted above insofar as the fixing and changing of rates, tolls and charges, and the Incline Village General Improvement District (“IVGID”) is a GID¹⁶, Dillon’s Rule instructs the extent of the District’s powers to fix rates, tolls and charges under NRS 318.

So now you know!

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1. See Public Organizations for Community Service (go to https://www.leg.state.nv.us/nrs/).
2. Such as electric light and power [see NRS 318.116(1)]; energy for space heating [see NRS 318.116(18)]; emergency medical services [see NRS 318.116(19)]; the extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica [see NRS 318.116(2)]; and, controlling noxious weeds [see NRS 318.116(20)],
3. Given NRS 318.175(2) instructs that “the board shall have the power…to…operate and maintain any district project,” and NRS 318.145 instructs that “the board shall have the power to operate…the improvements acquired by the district,” the right to charge rates, tolls and charges for access to and use of those improvements is “incidental” to specific powers granted in NRS 318.
4. Go to https://www.investopedia.com/terms/f/fee.asp.
5. The Governmental Accounting Standards Board (“GASB”) “establishes accounting and financial reporting standards for U.S. State and local governments that follow generally accepted accounting principles (GAAP).” GASB 33 defines an exchange transaction as one “in which each party receives and gives up essentially equal values.”
6. As in Recreation (“RFF”) and Beach (“BFF”) Facility Fees.
7. Policy 16.1.1.2.1 instructs that the “Recreation Fee is the annual Recreation Standby and Service Charge assessed by the District.” And Policy 16.1.1.2.2 instructs that the “Beach Fee is the annual Recreation Standby and Service Charge assessed by the District on all identified real property that was within the District on June 1, 1968.”
8. See page 484 of the packet of materials prepared by staff in anticipation of the Board’s May 25, 2023 meeting (“the 5/25/2023 Board packet“).
9. Such as public cemetery [see NRS 318.116(3)], swimming pool [see NRS 318.116(4)], television [see NRS 318.116(5)], FM radio [see NRS 318.116(6)], sewerage [see NRS 318.116(11)], water [see NRS 318.116(15)], storm drainage or flood control [see NRS 318.116(10)], lighting for streets [see NRS 318.116(12)], disposal of garbage and refuse [see NRS 318.116(13)], fire protection [see NRS 318.116(17)], and public recreation facilities [see NRS 318.116(14)].
10. See Tucker v. Mayor and Bd. of Alderman, 4 Nev. 20, 26 (1868); State ex rel. Rosenstock v. Swift, 11 Nev. 128 (1876).
11. Like GIDs [see Waltz v. Ormsby County, 1 Nev. 370, 377 (1865)].
12. See NRS 244.137(3) and NRS 244.137(4).
13. Also go to https://whyy.org/articles/what-is-home-rule/.
14. See https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf.
15. See NRS 318.010.
16. NRS 318.015(1) instructs that “each district organized pursuant to the provisions of this chapter shall be a body corporate and politic…quasi-municipal corporation” and general improvement district.