Introduction: As demonstrated elsewhere, the purpose of general improvement districts (“GIDs”) is supposed to be “to provide various urban type services (to real property¹ in)…areas where such services (a)re not available and (cannot) be provided (for) by general purpose government(s)”² such as counties, cities and unincorporated towns³. Given GIDs are authorized to “furnish services pertaining to any such basic power which the district may exercise,”⁴ and they exist to “serve…the inhabitants thereof and of the State of Nevada,”⁵ we submit their recreational facilities and the programs and services offered therefrom should primarily “serve…the inhabitants thereof.”

Yet as stated elsewhere, 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) not financially accountable (to) any other entity”⁶ and “empowered to determine what facilities and services it should offer”⁷ even though GIDs in general “often do not have the adequate size or tax base to (financially) support th(os)e services,”⁸ and here specifically, IVGID does not (see discussion below).

Staff’s justification for administering the District’s recreational facilities and offering the programs and services therefrom as if they were private, commercial, “for profit,” business enterprises⁹, with all that implies, goes something like this: Because the District’s recreational facilities are too expansive for the small, mostly non-owner-occupied mountain communities of Incline Village and Crystal Bay, and the fees to use those facilities are too high for many local residents¹⁰, the facilities are under utilized. And because Lake Tahoe is a world class tourist destination, staff can market and sell access to and use of those facilities and the programs and services offered therefrom to the world’s tourists using the revenues derived therefrom to allegedly reduce the user fees charged to local residents and parcel/dwelling unit owners. But there’s nothing in NRS 318 which expressly or by implication authorizes this type of behavior. Nor is there any evidence Washoe County is unable to provide or outsource the recreational facilities and programs and services IVGID provides, at least insofar as “the inhabitants…of (Incline Village, Crystal Bay) and of the State of Nevada” are concerned. Finally, harking back to Dillon’s Rule, should there be “any fair or reasonable doubt concerning the existence of a power, that doubt is resolved against the (governing) board…and the power is (to be)…denied.”¹¹ Given staff have demonstrated they are unable to operate these facilities as economically feasible¹² revenue neutral or “for profit” enterprises, they are required to involuntarily assess local parcel/dwelling unit owners a whopping $7 million or more annually in financial subsidies, just to be able to pass a balanced budget! And because the justification for this assessment is that it is allegedly necessary to make those facilities and services “available” to be used by those parcels/dwelling units which are assessed, yet here those facilities and services lack the capacity to be available to be used by those who are assessed when they choose to pay additional user fees and actually use them (especially when they are overrun by the world’s tourists), at the very least we submit we have demonstrated more than substantial doubt. Thus following Dillon’s Rule, it is our position that the District has no power to operate the public’s recreational facilities and the programs and services offered therefrom, as private, commercial, “for profit,” business enterprises, with all that implies.

1. 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.
2. 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).
3. 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.
4. NRS 318.100(2).
5. See NRS 318.015(1).
6. See ¶1(A) at page 35 of IVGID’s 2019 Comprehensive Annual Financial Report (“the 2019 CAFR”).
7. See https://www.yourtahoeplace.com/ivgid/about-ivgid.
8. See ¶11 at page 10 of LCB Bulletin 77-11.
9. Staff readily admit that “each (recreation) venue (i)s a unique business enterprise” [See section 3.5 of Policy No. 6.2.0 adopted at the Board’s March 1, 2022 meeting {go to page 223 of that packet of materials prepared by staff in anticipation of the Board’s March 1, 2022 meeting (“the 3/1/2022 Board packet”)}].
10. A large percentage of Incline Village’s/Crystal Bay’s permanent population base consists of low income hospitality or service industry workers and their families. These families cannot afford multiple sets of skis, golf clubs or tennis rackets; nor rounds of golf; nor daily ski area lift tickets; nor $15 daily recreation center memberships; etc.; especially during the work day.
11. See NRS 244.137(4).
12. NRS 318.055(4)(c)(2) instructs that County Boards of Commissioners (“County Boards”) must find “that…creation of the district is economically sound and feasible.