The history of how IVGID paid for the maintenance, improvement and renovation of Incline Village’s beaches is another study insofar as how and why general improvement districts (“GIDs”) in general, and IVGID in particular, were created. As we’ve elsewhere explained, when IVGID acquired its beaches their represented funding source was IVGID’s Recreation Facility Fee (“RFF”). Here we discuss when and how IVGID has maintained, improved and renovated its beaches, staff’s plans for the future improvements, and where they believe the necessary moneys will come from.

Maintenance And Repair Expenses: IVGID’s beach operational expenses¹, including maintenance and repair², are reported in the District’s Beach Fund. And given operational revenues have never in IVGID’s history been sufficient to pay for budgeted operational expenses³ assigned to the Beach Fund, the simple fact-of-the-matter is that the BFF represents the financial shortfall between budgeted revenues and intentional overspending. And given it’s disingenuous to “cherry pick” any particular revenue source as the one for payment of a specific expenditure, it’s evident beach operational maintenance and repair expenses have and currently are funded by the BFF.

Design Analysis And Facilities Plan: Two (2) years after IVGID acquired Incline Village’s beaches (i.e., 1970), it commissioned a “Design Analysis and Facilities Plan” intended to design: “adequate and increased parking capacity for the beach area…two (2) additional day use picnic facilities” and, evaluated preferred sites for boat launching, breakwater(s) and bath house facilities⁴. Estimated construction costs (but for breakwaters and a possible dock) were $233,864 for Incline Beach, and $146,575 for Burnt Cedar Beach. There was no discussion of the funding source(s) for these two sets of beach improvements. But based upon prior behavior, there was no other source other than the District’s Recreation Facility Fee⁵ (“RFF”).

Preliminary Evaluation of Boat Launching and Boarding Options: In April of 1991 the elevation level of Lake Tahoe was at 6,222.23 feet. Because there were projections that level could fall to 6,222 feet by September of that year, and the boat launching ramp was only usable when the Lake level exceeded 6,226 feet, the boat ramp was in essence unusable. The drought continued with a record low water elevation of 6,220.5 feet in the fall of 1992. On July 20, 1993 the District sponsored “a shoreline workshop to facilitate discussion between (IVGID) Board members and a panel of invited experts. Meanwhile Lake levels rose (to 6,227 feet) after the wet winter of 1995. And in 1996 this evaluation was formally commissioned. And the following was recommended:

“The west end of Incline Beach (wa)s (reaffirmed) as the best and only practical site for a new facility that c(ould) provide boat launching under extreme low water conditions…(However,) the possible installed cost of (a) multiple use facility at this site, excluding upland costs for parking and access (was projected to cost)…$3,200,000…(Thus) the District (was charged with)…decid(ing) whether further investigations of this option (we)re feasible.”

Given the price tag, obviously they were not.

IVGID Beaches Recreation Enhancement And Opportunities Plan: Because there had been “little investment…to much of the beach facilities since the” above Design Analysis And Facilities Plan, and at the urging of former IVGID engineer Brad Johnson, the District commissioned an updated beach facilities assessment and master plan in 2014. And in February of 2016 this plan was presented to the IVGID Board and the public. The stated objectives of this Plan were:

“To study…existing beach facilities…analyze their use and receive input from users and property owners in order to understand what improvements (we)re needed and what uses met community needs and desires while fitting with the dictates of the land.” Thus “the goal (of the Plan wa)s…intended…to provide…a…road map…for…future…site and building facility…infrastructure…improvements for IVGID beaches in relation to each beach’s site character, existing site conditions and user expectations…that w(ould) enhance the user experience in a sustainable and resilient manner consistent with the community’s values and expectations.”

The Plan identified a number of enhancement opportunities for Incline Beach, Ski Beach and Burnt Cedar Beach, and recommended the following “seven (vital) primary opportunities for improvements” aka “enhancements:”

1. Restroom And Concession Building Replacements: “replace the existing restroom building with a new structure that provides contemporary food operations with scramble service…utilize the opportunity to substantially enhance the kitchen and bar area. Hire a professional architect who specializes in commercial kitchens…incorporate…stand alone bar pavilion…provide restrooms sized to contemporary standards (with) 12-14 restroom stalls….consider winterization…provide…large outdoor deck or defined seating area…approximately 3,000 sq ft to accommodate outdoor seating for between 50-70 people…under…existing tree canopy;

2. Burnt Cedar Beach Pool House Enhancements: “consider…expansion/targeted remodel of the building…expand…concessionaire pavilion and/or deck space…incorporate a simple shed roof…retain…qualified architect with commercial food service expertise in conjunction with an independent kitchen design consultant to reconsider the snack bar’s overall flow and function…expand…bar into the lifeguard lounge area to free up…patio for patrons…provide dry and cold storage…open…existing ‘sundries’ window as a free standing retail kiosk…(and,) incorporate outdoor lighting into patio;”

3. Group Facility Enhancements at Incline And Burnt Cedar Beaches: “consider contextually appropriate structures that provide shade…and shelter; coordinate…group picnic shelter aesthetic with other new buildings; incorporate site furnishings, such as picnic tables and grills…evaluate the opportunity to provide utilities: e.g., water and power connections…provide multiple grills and prep areas;”

4. Burnt Cedar Beach Picnic Area Enhancements: “clarify circulation to enhance connectivity with the rest of Burnt Cedar Beach facilities; formalize picnic sites; consider the use of individual shelters…enhanc(e)…landscap(ing) through shrub and understory plantings and the use of turf;”

5. Beach Access And Pedestrian Connectivity Enhancements: “consider the use of a moveable boardwalk system to…formalize pathways and circulation systems…for people with mobility issues, families with young children and users rolling coolers or other gear; enhance the beach aesthetic; reduce…areas of unconfined decomposed granite trails; consider materials that are easily maintained and provide a firm and stable surface…create a new pathway to connect the east and west sides of Burnt Cedar Beach; consider a cantilevered/suspended boardwalk around the (Burnt Cedar) pool;”

6. Burnt Cedar Beach Non-Motorized Watercraft Storage And Launching Additions: “non-motorized watercraft storage in the western side of Burnt Cedar Beach…additional vegetation to screen th(is) storage from the Lake if necessary, (and) add(ing) wayfinding signage;” and,

7. Creation of Consistent Aesthetic Design: “creat(ion of) a consistent visual experience for the beach facilities; consider(ation of) architectural and site finishes and details for…buildings, shelters, signage (including fonts and colors), walls, curbs, (and) walkway…elements; consider(ing) the level of investment and develop(ment,) a(n) hierarchy of style depending upon visibility, location, and function/use.”

And one for “enhanced operations:” providing music events, increasing rental opportunities, enhancing food and beverage service, and improving the guest check-in process.

Estimated Financing to Implement These Capital Projects And Operations:

1. Restroom And Concession Building Replacements: $1,900,000-$2,200,000;

2. Burnt Cedar Beach Pool House Enhancements: $300,000-$450,000;

3. Group Facility Enhancements at Incline And Burnt Cedar Beaches: $400,000-$600,000;

4. Burnt Cedar Beach Picnic Area Enhancements: $200,000-$350,000;

5. Beach Access And Pedestrian Connectivity Enhancements: $516,000-$620,000;

6. Burnt Cedar Beach Non-Motorized Watercraft Storage And Launching Additions: $3,000 per 20-unit storage rack;

7. Creation of Consistent Aesthetic Design: $30,000-$50,000 in design costs only; and,

8. Enhanced Operations: who knows?

All told, at least $3,376,000-$4,300,000!

The Source of Revenue For These New Estimated Capital And Operational Expenses: Care to take a guess?

And now you know.

---

1. Governmental financial reporting instructs that operational expenses are associated with revenues the product of exchange transactions (ones where “two parties give up and receive…goods, services, or assets…of similar value”). Since the BFF is not the product of exchange transactions, GASB Statement Nos. 33, 36, and pre-November 30, 1989 Financial Accounting Standard Board (“FASB“) and American Institute of Certified Public Accountants (“AICPA“) pronouncements incorporated through GASB Statement No. 62 instruct they do not represent operational revenue.
2. NRS 318.145 instructs that GID “board(s) shall have the power to…maintain and repair the improvements acquired by the district, including, without limitation…all facilities of the district relating to any basic power which the district is authorized to exercise.”
3. As an example, look at the District’s fiscal year 2019-2024 “Statement(s) of Income, Expenses and Change(s) in Net Position” for the Beach Fund [see page 643 of the packet of materials prepared by staff in anticipation of the IVGID Board’s May 25, 2023 meeting (“the 5/25/2023 Board packet“)]. Once one removes the BFF, one sees operational losses for each and every year.
4. NRS 318.100(1) instructs that GID “board(s) may construct or otherwise acquire any improvement appertaining to any such basic power which the district may exercise and may finance the costs…by any of the procedures provided in this chapter.”
5. Not a NRS 318.197(1) “service charge…for services or facilities,” but rather, a “standby service charge…for the availability of service” (see our What is The RFF According to Staff And Past Boards discussion).