“Chapter 318 of NRS does not provide…for the county to have any supervisory or even advisory power(s) over a district once…created. There are no indicators of difficulties outlined which would alert (county) commissioners to impending problems, and no authority to do anything about the(m)…even if alerted.”¹ Which as elsewhere discussed, explains why a number of GIDs exist today which in hindsight should not². So the conundrum; how can one or more of these unnecessary districts be dissolved, consolidated or merged, if at all? This was an issue the Washoe County Board of Commissioners (“County Board”) attempted to tackle in August of 2015. Then Assistant District Attorney Paul Lipparelli wrote an August 21, 2015 memo to the County Board on “The Legal Authority of GIDs in Nevada.” Therein he concluded that “once…in existence, GIDs are independent legal entities with their own perpetual existence (see NRS 318.105)…(and expressly) not subject to direct review (n)or oversight (by the) County Boards” which created them. Notwithstanding, NRS 318.490, et seq. do address the statutory questions of GID “Merger, Consolidation and Dissolution.” And what they say is that there are at least three possible pathways.

Pathway No. 1: “If…the board of county commissioners…deem(s) it: (1) to be in the best interests of the county and…the district(; or)…(2) the services of the district are no longer needed or can be more effectively performed by an existing unit of government(; and,)…(3) all outstanding indebtedness and bonds of all kinds of the district have been…or will be…paid…or…assumed by (a) resulting merged or consolidated unit of government; (and most importantly, that)…(4) the board of trustees of (the) district…agrees³…the…county…board…shall…merge…consolidate…or dissolve” the GID⁴ as the case may be.

Pathway No. 2: Because as a practical matter no IVGID Board Trustee will ever, ever voluntarily vote to dissolve, merge or consolidate, how about the involuntarily removal of trustees and replacement with others who will vote to dissolve, merge or consolidate? Given NRS 318.080(6) allows the County Board to “remove any trustee,” and should “a vacancy remain after that removal…the board of county commissioners shall fill that vacancy,”⁵ the possibility exists the County Board or its accommodator GID trustees can/will vote to dissolve, merge, or consolidate.

Pathway No. 3: “If all…territory within a district organized pursuant to this chapter (NRS 318) is included within the boundaries of a city incorporated under the provisions of chapter 266 of NRS, the (County) Board…shall, within 90 days after the filing of the notice required by NRS 266.033 adopt an ordinance providing for the merger of the district with(in) the city (unless)…written protest is…signed by a majority of the owners of (real) property within the district.”⁶ Note that there is currently a move to turn Incline Village/Crystal Bay into a new city⁷. And interestingly, their promoters are insisting the boundaries of the new city differ slightly from those of the District⁸. And now you the reader know why!

There Used to Be a Fourth (4th) Pathway: For a very short time (July 1, 2017⁹ – June 30, 2021¹⁰), County Boards actually had the power to dissolve, modify, consolidate or merge GIDs¹¹. But as aforesaid, this power expired on June 30, 2021¹⁰. In likelihood never again to be resurrected.

If The District Were to Somehow Be Dissolved, Merged or Consolidated, What Would Happen to Its Substantial Recreation Facilities And Any Excess Fund Balances: which local parcel owners have in essence involuntarily financed since inception? NRS 318.510(1) and 318.510(5) provide the answer. NRS 318.510(1) instructs that: “if the district is dissolved…all property and all funds remaining in the treasury of any district must be: (a) surrendered and transferred to the county in which the district exists…(b)…If the district is merged…all property and all funds remaining in the treasury of any district must be…transferred to the governmental unit which assumes its obligations and functions…(c)…(And) if the district is consolidated…all property and all funds remaining in the treasury of any district must be…transferred to the consolidated governmental unit.” Moreover, “if an…area comprising the district or portion thereof is not annexed to a city or town within 6 months from the effective date of the dissolution ordinance…the board of county commissioners…must…pay to the owners of property located within the former district pro rata shares of the money remaining in the treasury of the district, and an amount of money equal to the value of any property which is not used for the benefit of the area formerly comprising the district.”

Conclusion: As a practical matter, IVGID will never, never be merged into another unit of government. Nor will it be consolidated or dissolved. And as elsewhere explained, because the District is in essence run by its non-elected employees, and its Board of Trustees serves as nothing more than employees’ “rubber stamp” mouthpiece, in our opinion trustees will never cross their true masters. And because board trustees are elected by the same qualified electors¹² who elect their County Board of Commissioner, there’s no way the latter will ever vote to supplant the will of their common constituent. Finally, given in our opinion it is unlikely Incline Village/Crystal Bay will ever be successful in their residents’ attempts to become a city, the provisions of NRS 318.495(2) will never come into play. So considering all of the above, how can IVGID really be dissolved, merged or consolidated? And how can the District’s parcel owners ever be compensated for the substantial recreation facilities and fund balances they and their predecessors have financed? Since any way “the cookie crumbles” it can’t, face the facts. IVGID is here to stay forever!

So now you know!

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1. See ¶II at page 16 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada (“LCB”), Bulletin 77-11, Creation, Financing and Governance of General Improvement Districts, September 1976 (“LCB Bulletin 77-11“).
2. The Incline Village general improvement district (“IVGID”) being a prime example.
3. “If the board of trustees of the district…does not agree…within 90 days after the question (i)s submitted…the district may not be merged, consolidated or dissolved” [see NRS 318.490(3)].
4. See NRS 318.490(1)-(2).
5. See NRS 318.090(5).
6. See NRS 318.495(2).
7. See https://www.cityofinclinevillage.com/.
8. See https://www.cityofinclinevillage.com/post/petition-update-and-all-your-other-new-questions-answered.
9. See Sec. 5(1), 2017 Statutes of Nevada, Page 1318 (CHAPTER 251, SB 462.
10. See Sec. 5(2), 2017 Statutes of Nevada, Page 1318 (CHAPTER 251, SB 462.
11. See former NRS 244.158(1).
12. NRS 318.095(3) instructs that “at…each…biennial election in any district organized or reorganized and operating under this chapter…there must be elected by the qualified electors of the district two qualified electors as members of the board to serve for terms of 4 years. At the second biennial election and each fourth year thereafter, there must be so elected three qualified electors as members of the board to serve for terms of 4 years.”