For decades the District had no stand alone Beach Facility Fee (“BFF”). Instead, there was only a Recreation Facility Fee (“RFF”). Actually more to the point, there were two different RFFs¹. Those properties with beach access were assessed one annual fee, and those without were assessed another².

But this all changed in 2007 when local Crystal Bay residents Frank Wright and Steve Kroll sued IVGID over its policy of denying those whose Incline Village/Crystal Bay properties were not included within IVGID’s June 4, 1968 boundaries when Crystal Bay Development Co.’s (“CBDC’s”) successor, Village Development Co., formally conveyed the beaches³ to IVGID⁴. Since Mssrs. Wright and Kroll were contending public moneys were being used by District staff to make the beaches available to some but not all residents of Incline Village/Crystal Bay⁵, IVGID was forced to segregate the revenues and expenses associated with the operation and improvement of the beaches from those associated with non-beach access and use. Enter Resolution 1783 adopted by the IVGID Board on April 30, 2008⁶.

Resolution 1783 created the Beach Fund. “All of the cost centers (within the Community Services Fund then) used to account for the beaches (were) transferred to the new fund”⁷ effective July 1, 2008. In anticipation of this transfer, at the IVGID Board’s April 30, 2008 meeting the it preliminarily approved a RFF as well as a separate RFF without beach access⁸. And by the time the 2008-09 budget was adopted (on May 15, 2008), the RFF without beach access had been labeled a “Beach Recreation Fee,”⁹ and it was separately assigned as revenue to “the newly created Beach Enterprise Fund.”⁹

Today both fees exist, and now you know!

1. We have separately discussed how and when the RFF was created.
2. Interestingly, Article 4, sec. 21 of the Nevada Constitution instructs that “in all cases enumerated in the preceding section, and in all other cases where a general law can be made applicable, all laws shall be…of uniform operation throughout the State.” The preceding section, Article 4 sec. 20, instructs that “the legislature shall not pass local or special laws in any of the following enumerated cases…for the assessment and collection of taxes for state, county, and township purposes.” Therefore if the RFF/BFF be “taxes”…
3. Link to the beach deed.
4. A summary of Mr. Wright’s litigation against the District can be gleaned from the published opinion in Wright v. Incline Village General Improvement District, 665 F.3d 1128 (9th Cir. 2011). A summary of Mr. Kroll’s litigation against the District can be gleaned from the published opinion in Kroll v. Incline Village General Improvement District, 598 F.Supp.2d 1118, 1126-28 (D. Nevada 2009).
5. Beach fees being paid to IVGID by local property owners with beach access were being commingled with recreation fees being paid by local property owners without beach access.
6. See pages 15-16 of the packet of materials prepared by staff in anticipation of the Board’s May 28, 2008 meeting (“the 5/28/2008 Board packet”). Also see Exhibit “I” at https://tax.nv.gov/Boards/Committee_on_Local_Govt_Finance/CLGF_Meeting_Documents/CLGF_2015_Apr_24/Public_Comment_Handout__2_Aaron_Katz/.
7. See pages 15-16 of the May 28, 2008 Board packet.
8. See pages 138-139 of the packet of materials prepared by staff in anticipation of the Board’s April 30, 2008 meeting (“the 4/30/2008 Board packet”).
9. See page 248 of the 2008-09 budget.