In a word no!

As we’ve elsewhere discussed, central services represent

The “core services almost all (governments require in order)…to support their operations and mission provided by a central service provider.”¹

And in Nevada, the costs associated with those services are limited to

“Only (an) enterprise fund’s² equitable share of”³ “necessary and reasonable”⁴ “indirect costs”⁵ “for the proper and efficient administration and performance of the enterprise fund(s)”⁶ from which transfers are to be made. Which “may include costs for services and property that are payable from the general fund or any internal service funds or other funds² of the local government”⁷ but “must be limited to indirect costs for services and property provided by the local government on a centralized basis, which may include, without limitation, general administrative costs, planning costs, budgeting costs, payroll costs, legal costs, legislative costs, and costs for general ledger accounting, internal audits, the administration of accounts payable, human resources, general services, emergency services, public relations, public works, property management, building and grounds maintenance, procurement and contracts, grants management, risk management, a motor pool, road maintenance, water and sewer service, telecommunications, automatic data processing services, printing, maintaining a library, records maintenance, storage and warehousing, and animal control.”⁸

The concept of allocated “central services” which the District relies upon for its various transfers is recognized in the “Local Government Budget and Finance Act”⁹ (“LGBFA”) as a “cost allocation (transfer device) for employees, equipment or other resources related to the purpose of…enterprise fund(s)” for which they are created¹⁰. And “the extent to which general, overhead, administrative and similar expenses of a local government of a type described in paragraph (c) of subsection 1 (above) may be (legitimately) allocated to an enterprise fund” must be determined by those regulations¹¹ which have been adopted by the Committee on Local Government Finance¹² (“CLGF”) to assist in its implementation.

Because for purposes of this discussion NRS 354.626(1) makes it unlawful for “the governing body or member thereof, officer, office, department or agency…of a local government¹³ (to)…willfully…

“Loan or transfer money from an enterprise fund, money collected from fees imposed for the purpose for which an enterprise fund was created or any income or interest earned on money in an enterprise fund (unless)…the loan or transfer is made…for a cost allocation for employees, equipment or other resources related to the purpose of the enterprise fund which is approved by the governing body under a nonconsent item that is separately listed on the agenda for a regular meeting of the governing body,”¹⁴

Here we examine whether the District’s alleged allocated central services cost transfers are the legitimate transfers staff and past/current Boards have represented/currently represent.

1. See https://waocio.my.site.com/s/glossary/a0U4U00000DLoJYUA1/central-services.
2. For an understanding of the District’s various reporting funds, the reader is directed to our Understanding The District’s Funds Structure discussion.
3. See NRS 354.613(8)(b).
4. See NAC 354.867(1)(a).
5. See NAC 354.8668(2).
6. See NAC 354.867(1)(a).
7. See NAC 354.8668(1).
8. See NAC 354.8668(2).
9. See NRS 354.470.
10. See NRS 354.613(1)(c).
11. See NAC 354.865 – 354.867.
12. See NRS 354.613(8).
13. According to NRS 354.474(1)(a), the term “local government means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation…districts organized pursuant to chapter…318…of NRS.” Because the Incline Village General Improvement District (“IVGID”) is “a governmental subdivision of the State of Nevada” [see NRS 318.075(1)], it has the power to levy and collect ad valorem taxes [see NRS 318.225], and it was organized pursuant to NRS 318 [see NRS 318.055(4)(a) which instructs that “district(s)…authorized to exercise more than one basic power (must use) the words ‘General Improvement District'” in its initiating ordinance.], it is a local government for purposes of the LGBFA.
14. See NRS 354.613(1)(c).