Where Does The Money Come From to Pay For “Fuels Management” aka “Defensible Space” Services?
Given NRS 318.210 instructs that “the board shall have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter,” and NRS 318.197(1) represents a specific power which allows GID boards to “fix, and from time to time increase or decrease…rates, tolls and charges other than special assessments,” the question which follows: from where exactly do the funds come from to pay for the defensible space aka fuels management services the District outsources? The simple answer is the Recreation (“RFF”) and Beach (“BFF”) Facility Fees, as well as the water and sewer rates each local parcel owner is responsible for paying.
Given the District is authorized to furnish facilities for water1 and the “rate(s and)…charge(s)” for this service are assigned to the water sub-fund under District’s Utility Fund2, the District is authorized to furnish sanitary facilities for sewerage3 and the “rate(s and)…charge(s)” for this service are assigned to the sewer sub-fund under District’s Utility Fund2, and the District is authorized to furnish facilities for public recreation4 and the “rate(s and)…charge(s)” for these services are assigned to the District’s Community Services5 as well as Beach Funds6, at the District’s March 19, 2025 Board meeting staff provided the answer:
“Historically (50% of the cost has) been allocated from the Community Administration (portion of the Community Services Fund and)…the remain(der)…is split between the water and sewer, with each division receiving a portion of the amount collected as a flat fee on (each water customer’s)…monthly utility bill.”7
And given local parcel owners are obligated to make payment of the actual occupant(s): of their parcel’s water8 and sewer9bills as well as the RFF10, Utility Fund revenue comes from the rates and charges local parcel owners pay, and as elsewhere stated the District intentionally budgets to overspend in the Community Services Fund and the deficiency comes from the RFF and BFF, respectively, local parcel owners are the ones who pay for central services cost transfers to the General Fund.
And now you know!
- See NRS 318.116(15).
- See the Utility column under District’s 2024-25 Central Services Cost Allocation Plan [Supplemental Item G.3.B. to the packet of materials prepared by staff in anticipation of the Board of Trustee’s (“Board’s”) May 31, 2024 meeting (“the 5/31/2024 Board packet”)].
- See NRS 318.116(11).
- See NRS 318.116(14).
- See the Championship Golf, Mountain Golf, Facilities, Ski, Recreation Center, Tennis and Community Services Administration columns, combined, under District’s 2024-25 Central Services Cost Allocation Plan.
- See the Beach columns under District’s 2024-25 Central Services Cost Allocation Plan.
- See page 5 of the packet of materials prepared by staff in anticipation of the Board’s March 19, 2025 meeting (“the 3/19/2025 Board packet“).
- The District has adopted a water Ordinance No. 4. According to ¶9.06 thereof, “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.”
- The District has adopted a sewer Ordinance No. 2. According to ¶12.08 thereof, “all costs and expenses incident to the installation and connection of any sewer or other work for which a permit has been issued…in addition to all fees and service charges provided for (there)in…shall be borne by the Owner.”
- The District has adopted Recreation Roll Policy No. 16.1.1. According to ¶2.1 thereof, the RFF “is the annual Recreation Standby and Service Charge assessed by the District on all real property within the District that is in one of the categories listed in Section 1.0 of this document.” According to ¶3.1 thereof, the BFF “is the annual Recreation Standby and Service Charge assessed by the District within the District in one of the categories listed in Section 1.0 that was within the boundaries of the District when it acquired the beach properties on June 1, 1968.”