As demonstrated elsewhere, the purpose for general improvement districts (“GIDs”) is supposed to be “to provide various urban type services¹ (to real property² in)…areas where such services (a)re not available and (cannot) be provided (for) by general purpose government(s)”³ such as counties, cities and unincorporated towns⁴. Okay, what types of services? Those provided by the Legislature⁵ as explicitly conferred in the GID’s initiating ordinance⁶ as supplemented, if at all, by those “additional basic power(s expressly) granted,”⁷ “sections of this chapter (NRS 318) designated therein,”⁸ and none other⁹. 

Yet for decades unelected staff and “rubber stamp” trustees have taken the position that because IVGID “is a legally separate government…fiscally independent of any other governmental entity…(it is somehow) not financially accountable (to) any other entity,”¹⁰ and it is “empowered to determine what facilities and services it should offer”¹¹ even though oftentimes GIDs: “do not have the adequate size or tax base to (financially) support th(os)e services;”¹² NRS 318.055(4)(c)(2) expressly declares that a GID’s “initiating ordinance must set forth…a statement that the ordinance creating the district will be based on the (county) board (of commissioner)’s finding…that the creation of the district is economically sound and feasible;” and here specifically, IVGID does not have the adequate size nor tax base to (financially) support the services it furnishes and its furnishing of those services is not economically sound. Stated differently, past trustees have taken the position, contrary to Dillon’s Rule¹³, that unless the exercise of a power is expressly prohibited by NRS 318, they are free to exercise it!

So the question: Does the District have the power to donate or give away public property including public monies for any reasons, and to finance that give away with its Recreation (“RFF”) and/or Beach (“BFF”) Facility Fees, or water, sewer and/or solid waste franchise fees local parcel owners are forced to involuntarily pay/guaranty? For the reasons which follow, we say no!

Agreement to

Where Does NRS 318 Instruct it is Appropriate For a GID to Donate or Give Away Use of Public Facilities or Give Away Money to Anyone? Although NRS 318.145 instructs GID “board(s) shall have the power to operate, maintain and repair…improvements acquired by the district…and all facilities of the district relating to any basic power which the district is authorized to exercise,” strictly construed and limited⁹, and unlike counties and cities¹⁴, nowhere are they empowered to donate or give away public property including money to anyone for any purpose! And although NRS 318.210 instructs GID “board(s) shall have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter,” strictly construed and limited⁹, where in NRS 318 is it necessary, incidental or implied that IVGID must donate or give away use of public facilities or property? Given the answers to these questions are “nowhere,” where exactly is the authority?

Dillon’s Rule¹⁵. And should there be any fair, reasonable, or substantial doubt concerning the existence of power, it should be resolved against the District and the power be denied. NRS 318 fails, in express words, to grant GIDs the power of philanthropy. Moreover, it fails to necessarily or fairly imply that this power exists from other powers expressly granted. Nor is this power indispensable to the accomplishment of the declared objects and purposes of GIDs.

Finally, is there any doubt in your mind as to whether GIDs have the power of philanthropy? Although it should be obvious that the answer is a resounding no, if for you the answer is yes, Dillon’s Rule again instructs that such doubt must be resolved against the District and the power be denied!

Attorney General Opinion 2005-01: (January 21, 2005). Although we’re not aware of any court case which has ruled on the propriety of GID philanthropy, we are aware of this Nevada Office of Attorney General (“OAG”) Opinion. This opinion instructs that the powers granted to local government are “in the nature of a public trust that may not be exercised…in the absence of statutory authorization.” Therefore without statutory authority, GIDs have no power to donate or give away any public property or money, or use of any public property, to anyone for any reasons whatsoever! And since they have no such power, the same AOG opinion instructs they have no power to delegate such powers to their GM or anyone else¹⁶.

Staff’s Justification: goes something like this: Our donations and preferred pricing benefits the community as a whole! Although there are public costs by which the beneficiaries of these favors benefit, since most beneficiaries are organizations made up of local parcel owners, in essence staff’s philanthropy benefits local parcel owners who are paying.

Staff’s Funding Source: In response to a public records request staff have disclosed that insofar as these costs are concerned,

Conclusion: In our opinion it is a misuse of the NRS 318.197(1) (the power to fix rates, tolls and charges) to use the RFF/BFF and water, sewer and/or solid waste franchise fees local parcel owners involuntarily pay/guaranty as if they were taxes to pay for the donation and/or giveaway of the use of public facilities and money!

1. GIDs are authorized to “furnish services pertaining to any such basic power…the district may (permissibly) exercise” [see NRS 318.100(2)].
2. Consider that: NRS 318.258(9) instructs the services a GID “provide(s are those)…required by the owners of…real property;” NRS 318.197(2) instructs that “all rates, tolls or charges (adopted shall) constitute a perpetual lien on and against the property served;” NRS 318.201(10) similarly instructs that “the amount of the charges (elected to be collected on the tax roll) shall constitute a lien against the lot or parcel of land against which the charge has been imposed;” NRS 318.203 instructs that “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists that is not currently being charged for services provided…the board…of trustees…may adopt a resolution…to charge the owner (of that unit)…for the services provided;” NRS 318.170(1)(b) instructs that “all owners of inhabited property in the district (may be compelled) to use (and pay for) the district’s system for the collection and disposal of sewage, garbage and other refuse;” and, NRS 318.201(1) instructs that when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges for the forthcoming fiscal year collected on the tax roll…it shall cause a written report to be prepared…which shall contain 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.” In all of these examples it is the owner of real property who is charged for the services and facilities a GID provides to real property.
3. See ¶II at page 8 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada (“LCB”), Bulletin No. 77-11, Creation, Financing and Governance of General Improvement Districts, September 1976 (LCB Bulletin 77-11).
4. In Nevada counties, cities and unincorporated towns are general purpose governments because each is granted general powers to provide for the health, safety and welfare of its inhabitants. Counties are vested “with the appropriate authority to address matters of local concern” [see NRS 244.137(6)]. “The term…matters of local concern (expressly)…include(s those addressing)…public health, safety and welfare” [see NRS 244.143(2)(a)]. Cities are vested with express powers to: “provide for safeguarding public health” [see NRS 266.330(1)], “provide generally for the public safety” [see NRS 266.277(1)], and regulate and license (see NRS 266.355) which encompasses statements attesting to the welfare of the community [see NRS 425.520(2)]. Unincorporated towns are vested with express powers to: provide for “public health, safety and morals” [see NRS 269.190 et seq.], and, “protect the public health and welfare” [see NRS 269.227, 269.128, 269.171(1)]. In contrast, GIDs are not expressly permitted to exercise any of these powers.
5. See NRS 318.116.
6. See NRS 318.055(4)(b).
7. See NRS 318.077.
8. See NRS 318.055(4)(a).
9. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
10. See ¶1(A) at page 35 of IVGID’s 2019 Comprehensive Annual Financial Report (“the 2019 CAFR”).
11. See https://www.yourtahoeplace.com/ivgid/about-ivgid.
12. See ¶11 at page 10 of LCB Bulletin 77-11.
13. Dillon’s Rule is recited at NRS 244.137(3)-(4) as well as NRS 268.001(3)-(4) and “provides that (the governing boards of local governments) possess…and may exercise only the following powers and no others: (a) those,,,granted in express terms by the Nevada Constitution or statute; (b) those…necessarily or fairly implied in or incident to the powers expressly granted; and (c) those…essential to the accomplishment of the declared objects and purposes of the (local government) and not merely convenient but indispensable…Dillon’s Rule also provides that if there is any fair or reasonable doubt concerning the existence of a power, that doubt is resolved against the (governing) board of (the local government) and the power is denied.”
14. The Nevada Legislature, pursuant to NRS 244.1505 and NRS 268.028, has vested counties and incorporated cities in Nevada with the discretionary power to expend money to nonprofit organizations created for religious, charitable, or educational purposes for a selected purpose if it provides a substantial benefit to the inhabitants. Therefore, counties and cities have limited discretionary power to expend money for charitable purposes.
15. See Ronnow v. City of Las Vegas, 57 Nev. 332, 341-43, 65 P.2d 133 (1937) and NRS 244.137(1)-(4).[/evn_note] instructs that “a  municipal corporation possesses and can exercise the following powers, and no others: First, those granted in express words; second, those necessarily or fairly implied in or incident to the powers expressly granted; third, those essential to the accomplishment of the declared objects and purposes of the corporation – not simply convenient, but indispensable…Neither the corporation nor its officers can do any act, or make any contract, or incur any liability, not authorized thereby, or by some legislative act applicable thereto. (And) all acts beyond the scope of the powers granted are void” (Id., at 57 Nev. 343).
16. Also see Op. Nev. Att’y Gen. No. 96-11 (April 25, 1996) which relies upon California Sch. Emp. A. v. Personnel Com’n. of P.V.U.S.D., 3 Cal. 3d 139, 144, 474 P.2d 436, 439 (1970).