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 (mosquitos), library, fire, water, sewer and cemetery districts. That means they exist to perform very limited functions. Since each state 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,

NRS 318.197(1): instructs 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.” We believe “rates,” “tolls and charges” are really different names for “specific services” for which “fixed price(s are) charged.”² Also known collectively as “fees.” Individuals and businesses pay fees for a wide variety of reasons. Typically, fees are associated with some type of transactional relationship. 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.

NRS 318.210: Given the District is expressly authorized³ to “furnish services pertaining to any such basic power…the district may exercise,”⁴ NRS 318.210 instructs GID Boards are 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 318⁵. The term “fee”⁶ is used by staff and the Board to describe the “standby service charges”⁷ which are 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 actually authorized to fix, and in fact fixes, are fees because they are associated with transactional relationships. Similarly, given the District is expressly authorized³ 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 318.199(2): instructs that “whenever the board of trustees proposes to change any individual or joint rate, toll, charge, service or product, or any individual or joint practice which…affect(s) any rate, toll, charge, service or product, the board of trustees shall hold public hearings…If, after public hearing, the board of trustees determines that the proposed (rate, toll or charge) action is required, the board shall adopt a resolution establishing…new or changed rates, tolls, charges, services to be performed or products to be furnished.”

NRS 244.137(2): Given NRS 244.137(2) instructs that “in Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule¹⁰ to county, city and other local governments,”¹¹ and thus Nevada is a Dillon’s Rule State, we refresh the reader’s recollection of the Rule¹². That is, 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 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 charged, and the Incline Village General Improvement District (“IVGID”) is a GID¹⁶, the District’s power to fix rates, tolls and charges is recognized/restricted by NRS 318.

Conclusion: So there you go! Now you know what statutory authority exists for GIDs to adopt rates, tolls and charges, and the rates, tolls and charges the IVGID Board is permitted to adopt. As you examine the “fees” the District actually adopts/has adopted in the past, we ask you hold it accountable to the limits and restrictions discussed above.

1. See Public Organizations for Community Service (go to https://www.leg.state.nv.us/nrs/).
2. Go to https://www.investopedia.com/terms/f/fee.asp.
3. See NRS 318.100(2).
4. 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)].
5. 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.
6. In other words, the 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 Sta ndby 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)]. 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” (see https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf)].
12. See NRS 244.137(3).
13. Also go to https://whyy.org/articles/what-is-home-rule/.
14. Go to https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf. Also see NRS 244.137(4).
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.