Because the RFF and the BFF represent such large percentages of the revenues assigned to the District’s Recreation¹ and Beach² Funds, respectively, we believe it important to understand exactly what these monetary exactments represent. And against what/whom they are levied. Especially because as we’ve explained elsewhere, general improvement districts (“GIDs”) are limited purpose forms of local government with limited means of generating revenues. So when their governing boards incur costs such as those assigned to our Community Services and Beach Funds, which are beyond our District’s financial wherewithal, they become over reliant upon these limited revenue sources. Not to worry though. As the reader will, see our little Incline Village General Improvement District (“IVGID”) is up to the challenge! And the way it meets this set of circumstances is through the RFF (insofar as the District’s Community Service Fund is concerned) and BFF (insofar as the District’s Beach Fund is concerned), respectively. So what have staff and past Boards told us the RFF/BFF represent? In a nutshell, the financial shortfall between budgeted revenues and intentional overspending assigned by staff to the District’s Community Services and Beach Funds, respectively.

According to the District, “each year (its Board)…establishes…annual Recreation…and Beach Facility Fee(s)…As part of the annual budget process the Board traditionally approves a resolution which…establish(es) the amount of the…RFF and…BFF to be collected.”³ In accordance with NRS 318.201(1), the resolution the Board adopts⁴ approves “a written ‘Report’ (for collection on the county tax roll which)…contain(s) a description of each parcel of real property receiving…services and facilities and the amount of the charge for each parcel for such year, computed in conformity with the charges prescribed by the resolution.”⁵ That “Report” describes those charges as:

“Recreation Standby and Service Charges [also known as the Recreation…and Beach Facility Fee(s)⁶…For The Availability of Use of The Recreational Facilities (Therein) Described.”⁷

“To Support Debt, Capital Expenditure And Operations For The District’s Various Recreation And Beach Facilities…Venues, Services, And Programs.”⁸

In other words, “these fees are established based on the revenues (actually) required to (financially) support⁹ debt, capital expenditure and operations for the District’s various recreation and beach facilities…(which when) combined with (operational) service charges¹⁰ collected…for facility use and program activities…serve to (financially) support⁹…operations of the District funded by (its) Community Services…and Beach Fund(s), respectively.”⁸ Or as Board Policies 6.2.0.3.0 and 6.2.0.4.0 instruct, “the District establishes, through the annual budget process, a Recreation…and Beach…Facility Fee assessed on…eligible…parcels and/or dwelling units within the District (to financially)…support⁹…Community Services facilities, venues, services, and programs” and “Beach…services, and programs,” respectively. In other words, the financial shortfall between budgeted revenues and intentional overspending assigned by staff to the District’s Community Services (insofar as the RFF is concerned), and Beach (insofar as the BFF is concerned) Funds, respectively¹¹. Moreover according to Mr. Homan,

“Every parcel owner that has purchased their property over the last 55 years was fully aware of th(is) recreation model. They made their investment decision(s) with full transparency. When I moved to Incline Village, this model was a key part of my decision to invest and live in this community…I believe this was also a factor for most of the people that have moved to Incline Village over the last 55 years.”¹²

Based Upon What “The Market Will Bear:” The District has done a very good job of brainwashing the public into believing they receive “value” in consideration of their local parcel’s forced payment of the RFF/BFF. In other words, members of the public who support this “value” notion tell us they are and have been comfortable with paying up to $830 annually in a combined RFF/BFF, regardless of what they have been told these exactions actually represent. Just listen (again) to candidate Mick Homan for 2025 Board trustee:

“I believe (the RFF/BFF) represent…an incredible value relative to the recreational facilities IVGID provides to all residents¹²…even at two to three times the proposed amount¹³!”

In our view these statements are evidence of a “what the market will bear” mentality. Given there is no statutory limit to the NRS 318.197(1) rates, tolls and charges a GID Board may fix, to what levels can the RFF/BFF increase before members of the public balk? This is the challenge each Board faces. And the lesson learned is that as long as the RFF/BFF remain below “what(ever) the market will bear,” the Board can continue to get away with assessing the RFF/BFF whatever amounts it chooses.

So there you go. Now you know what staff and past IVGID Boards have told us/tell us the RFF/BFF represent, and what they allegedly pay for.

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1. IVGID staff assign RFF revenue to the District’s Community Services Fund. Putting aside the fact history demonstrates that the public cannot rely upon the accuracy of the financial information IVGID staff report to the public, yet accepting this information as fact for purposes of argument, for 2021-22 the IVGID Board adopted a tentative budget whereby the subsidy of the RFF represented 28.18% of operational revenue [see page 049 of the packet of materials prepared by staff in anticipation of the Board’s April 14, 2021 meeting (“the 4/14/2021 Board packet“)].
2. IVGID staff assign BFF revenue to the District’s Beach Fund. For 2021-22 the IVGID Board adopted a tentative budget whereby the subsidy of the BFF represented 156.26% of operational revenue (see page 084 of the 4/14/2021 Board packet).
3. See pages 102-103 of the packet of materials prepared by staff in anticipation of the Board’s May 27, 2020 meeting (“the 5/27/2020 Board packet”).
4. An example of that resolution (for fiscal year 2022-23, i.e., No. 1893), appears at pages 228-231 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“).
5. An example of that Report (for fiscal year 2022-23), appears at pages 232-237 of the 5/26/2022 Board packet.
6. See page 232 of the 5/26/2022 Board packet.
7. See ¶I at page 234 of the 5/26/2022 Board packet.
8. See pages 224-225 of the 5/26/2022 Board packet.
9. In other words, subsidize.
10. In other words, user fees.
11. Just listen to candidate Mick Homan for 2025 Board trustee when he gave public comment at the Board’s May 29, 2024 meeting [see page 164 of the packet of materials prepared by staff in anticipation of the Board’s June 28, 2024 meeting (“the 6/28/2024 Board packet“)]: “The reality is the(se) fee(s) need to…cover our budgeted shortfall to avoid going insolvent.”
12. Go to candidate Mick Homan’s “Views on Important Topics.”
13. See page 165 of the 6/28/2024 Board packet.