Because central services cost transfers represent such a large percentage¹ of all revenues assigned to the District’s General Fund², we believe it important to understand exactly what these services represent, and how their amounts are determined, allocated, and assessed. As we have explained elsewhere, general improvement districts (“GIDs”) are limited purpose forms of local government³ created to provide specific services⁴ [along the lines of vector control (mosquitos), library, fire, water, sewer and cemeteries as opposed to general municipal type police powers⁵] to the owners of local parcels⁶ within their geographical boundaries. And “central services” represent the “core services almost all (governments require in order)…to support their operations and mission provided by a central service provider.”⁷ Which in Nevada are limited to “only the enterprise fund’s equitable share of”⁸ “necessary and reasonable”⁹ “indirect costs”¹⁰ “for the proper and efficient administration and performance of the enterprise fund(s)”⁹ from which transfers are to be made. Which “may include”¹¹ “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”¹⁰ “services and property provided by the local government on a centralized basis.”¹² The concept of “central services” which the District relies upon is recognized in the “Local Government Budget and Finance Act”¹³ (“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 created¹⁴. 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 by¹⁵ those regulations¹⁶ which have been adopted to assist in its implementation.

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 2021-22 the subsidy of central services cost transfers represented 39.15% of all revenues [see pages 22 and 25 of the FY 2022 Annual (Audited) Comprehensive Financial Report (“FY 2022 ACFR“). $1,538,807 of central services cost transfers compared to $3,929,652 of “total revenues.” And for FY 2026, it has been budgeted to total a whopping 89.76%[see page 7, Schedule B-9 to the District’s FY 2026 budget (form 4404LGF) filed with the Department of Taxation. $4,050,500 of central services cost transfers compared to $4,512,486 of total “revenues from all sources.”
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 A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
4. See our Powers All General Improvement Districts Are Authorized to Exercise discussion.
5. 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)].
6. Take a look at NRS 318.116. This is the statute which expressly declares the basic powers a GID may exercise. To make the case GIDs furnish services “required by the owners of…real property” [see NRS 318.258(9) – “(b) the district can provide the services required by the owners of the real property;” and, “(c) the owners of the real property (will) pay the costs of providing the facilities”], consider the following basic powers they may be authorized to furnish: electric light and power [NRS 318.116(1)]; streets [NRS 318.116(7)], curbs, gutters and sidewalks [NRS 318.116(8)]; street lighting [NRS 318.116(12)]; storm drainage and flood control [NRS 318.116(10)]; energy for space heating [NRS 318.116(18)]; water [NRS 318.116(15)]; sewerage [NRS 318.116(11)]; the collection and disposal of garbage and refuse [NRS 318.116(13)]; fencing [NRS 318.116(16)]; fire protection [NRS 318.116(17)]; control of noxious weeds [NRS 318.116(20)]; and, the extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica [NRS 318.116(2)].

   Now consider that the Incline Village General Improvement District’s (“IVGID’s”) Board of Trustees’ (“Board’s”) recognition that “each parcel assessed [the Beach (‘BFF’) and/or Recreation (‘RFF’) Facility Fee]…is specifically benefited” by the District’s recreation facilities for which it is assessed [see ¶4 at page 229 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“). As well as ¶4(c) at page 230 of the the 5/26/2022 Board packet which recites “the availability of the use of IVGID’s (recreation facilities is a)…benefit…which inure(s) to said real properties“].

   And consider that “all rates, tolls (and) charges (adopted for these services) constitute a perpetual lien on and against the (real) propert(ies) served” [see NRS 318.197(2)]. and, each “lot or parcel of land against which the charge has been imposed” [see NRS 318.201(10)]. For this reason, “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists…is not currently being charged for services provided…(IVGID’s) board…of trustees…may adopt a resolution…to charge the owner (of that property)…for the services provided” (see NRS 318.203).

   Since “all owners of inhabited property in the district (are compelled) to use (and pay for) the District’s system for the collection and disposal of sewage, garbage and other refuse” [see NRS 318.170(1)(b)], when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges…collected on the tax roll…it…cause(s) a written report to be prepared…which…contain(s) 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” [see NRS 318.201(1)]. Take a look at the District’s trash Ordinance No. 1, sewer Ordinance No. 2, and water Ordinance No. 4. Who does IVGID ultimately look to for payment of these services it provides or the contracts it enters into with a third party collector to provide to real property? According to ¶5.9 of Ordinance No. 1, ¶14.05 of Ordinance No. 2, and ¶9.06 of Ordinance No. 4, “all charges, fees and amounts due and payable shall be billed to the owner of the premises, whether or not the owner is also the occupant.”

   What about IVGID’s recreation Ordinance No. 7? Who does IVGID ultimately look to for payment for the mere availability to access and use the recreational facilities and services it furnishes? According to ¶43 of Ordinance No. 7, parcels of real property [rather than the persons who are the ones eligible to access and use the same (i.e., “privileges”)]. For this reason access and use are pre-conditioned upon a real property’s payment of “all property taxes, special assessments and recreation fees (assessed thereagainst)…for the current and prior years.”

   What about the beach facilities and services IVGID provides to the owners of those local parcels of real property with beach access? Again, access is pre-conditioned upon payment of the BFF local property owners with beach access are obligated to pay [see ¶43 of Ordinance No. 7].

   What about the defensible space aka fuels management services IVGID contracts with the North Lake Tahoe Fire Protection District (“NLTFPD”) provides? 50% of the cost is included in the water rates, tolls and charges local property owners are obligated to pay [see page 55 of the 2021-22 Annual Comprehensive Financial Report (“2021-22 ACFR“)], and the other 50% is included in the RFF local property owners are obligated to pay (see page 56 of the 2021-22 ACFR).

   What about when the assets of a GID are proposed to be merged into an incorporated city? It is the vote (i.e., the “protest”) of local parcel owners within the district which shall determine whether to dissolve, merge or consolidate [see NRS 318.495(2)].

   What about voting for/against Board trustees [see NRS 318.0951(1)] or general obligation bonds [see NRS 350.020(1)]? At least up until 1977 (when the Legislature was under the mistaken belief it was unconstitutional for nonresident parcel owners to vote in elections notwithstanding their obvious primary interest therein), local parcel owners (aka “taxpaying electors”) were qualified to vote [see former NRS 318.09525].

   In all of these examples, it is or was the owner of real property who is or was ultimately charged with standing to protest or who protested all of the services and facilities IVGID provides or provided to real property.

7. See https://waocio.my.site.com/s/glossary/a0U4U00000DLoJYUA1/central-services.
8. See NRS 354.613(8)(b).
9. NAC 354.867(1)(a).
10. See NAC 354.8668(2).
11. See NAC 354.8668(1).
12. See NAC 354.8668(1).
13. See NRS 354.470, et seq.
14. See NRS 354.613(1)(c).
15. See NRS 354.613(8).
16. See NAC 354.865 – 354.867.