Because central services cost transfers represent such a large percentage¹ of revenues assigned to the District’s General Fund², we believe it important to understand exactly what these services represent. Because as we have explained elsewhere, general improvement districts (“GIDs”) are limited purpose forms of local government intended to provide limited, specific services³ along the lines of vector control (mosquitos), library, fire, water, sewer and cemeteries as opposed to general municipal type police powers⁴.

With that said, “central services” represent “core services that almost all (governments) need to support their operations and mission provided by a central service provider, such as legal services, statewide financial systems, administrative hearings, information technology, worker’s compensation, auditing services as well as some financial, human resources and IT services tailored for small agencies.”⁵ In Nevada the concept of “central services” is recognized in: its “Local Government Budget and Finance Act”⁶ (“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 created⁷; as well as in those regulations adopted to assist in its implementation⁸. So for school districts by way of example, the term generically “means (nothing more than)…administrative staff…who provide services.”⁹

And now you know!

1. Putting aside the fact history demonstrates the public cannot rely upon the accuracy of financial information IVGID staff report to the public, yet accepting this information as fact for purposes of argument only, for 2022-23 the IVGID Board adopted a final budget whereby the subsidy of central services cost transfers represented 31.44% of all revenue [see pages 045 and 114 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“). The reader will have to add the $1,887,589 of central services cost transfers to the $4,117,002 of total budgeted revenues, and then apply the central services cost revenue as a percentage.
2. For an explanation of the District’s Fund Structure, the reader is directed to our Understanding The District’s Funds Structure discussion.
3. See our Powers All General Improvement Districts Are Authorized to Exercise discussion.
4. Those incredibly broad powers related generally to “[p]ublic safety…health, morality, peace and quiet, (and) law and order” [see Berman v. Parker, 348 U.S. 26, 32, 75 S.Ct. 98 (1954)].
5. Go to https://waocio.my.site.com/s/glossary/a0U4U00000DLoJYUA1/central-services.
6. See NRS 354.470, et seq.
7. See NRS 354.613(1)(c).
8. See NAC 354.8668(1) which defines the term to “include costs for services and property that are payable from the general fund or any internal service funds or other funds of (a) local government” such as those “indirect cost(s)…for services and property provided by the local government on a centralized basis, which may include (where permitted), 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” [see NAC 354.8668(2)].
9. See NRS 388G.520.