Introduction: As demonstrated elsewhere, the purpose of general improvement districts (“GIDs”) is supposed to be “to provide various urban type services¹ (to real property² in)…areas where such services (a)re not available and (cannot) be provided (for) by general purpose government(s)”³ such as counties, cities and unincorporated towns⁴. Well what types of services? Those provided by the Legislature⁵ as explicitly conferred in the GID’s initiating ordinance⁶ as supplemented, if at all, by those “additional basic power(s expressly) granted,”⁷ “sections of this chapter (NRS 318) designated therein,”⁸ and none other⁹. 

Yet for decades unelected staff and “rubber stamp” trustees have taken the position that because IVGID “is a legally separate government…fiscally independent of any other governmental entity…(it is somehow) not financially accountable (to) any other entity”¹⁰ and it is “empowered to determine what facilities and services it should offer”¹¹ even though GIDs in general “often do not have the adequate size or tax base to (financially) support th(os)e services,”¹² and here specifically, IVGID does not.

So the question presented: Does the District have the power to maintain someone else’s real property? For the reasons which follow, we say no!

Agreement to Maintain the Upper Athletic Field at Incline High School: For over forty (40) years the District has maintained the upper athletic (football) field at Incline High. This is because of a March 24, 1981 Joint Use and Maintenance Agreement whereby the Washoe County School District (“WCSD”) is entitled to use District recreational facilities without paying user fees, and the District is purportedly entitled to use WCSD recreational facilities without paying user fees¹³. Although technically ¶12 of the agreement obligates each party to maintain its recreational facilities including the WCSD’s upper athletic field at Incline High, as a practical matter that field has been maintained by the District. Apparently the WCSD issues a purchase order (“PO”) each fiscal year authorizing payment to IVGID for the field’s maintenance. Over the years the amount of the PO has varied from $20,000-$25,000 and if one examines the District’s budgets over the last ten (10) or more years, one will discover that this payment represents well in excess of fifty percent (50%) of the “charges for services” revenue assigned to its Community Services Parks sub-fund. In other words, without the revenue coming from the WCSD, the charges assessed by staff for park facilities would be next to nothing!

The Costs the District Incurs to Maintain the Subject Athletic Field: The public has no idea inasmuch as staff do not report financial information like this.

Where Does NRS 318 Instruct it is Appropriate For a GID to Maintain Someone Else’s Real Property? Although NRS 318.145 instructs GID “board(s) shall have the power to operate, maintain and repair…improvements acquired by the district…and all facilities of the district relating to any basic power which the district is authorized to exercise,” strictly construed and limited⁹, the District has neither acquired the facilities nor improvements constructed on this WCSD property. And although NRS 318.210 instructs GID “board(s) shall have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter,” strictly construed and limited⁹, where in NRS 318 is it necessary, incidental or implied that IVGID must maintain someone else’s real property? Given the answers to these questions are “nowhere,” where exactly is the authority?

Finally, we harken back to the lessons of Dillon’s Rule¹⁴. Should there be any fair, reasonable, or substantial doubt concerning the existence of power, it should be resolved against the District and the power be denied. So is there any doubt in your mind as to whether GIDs have the power to maintain someone else’s real property? If you answer yes, Dillon’s Rule instructs that such doubt be resolved against the District and the power be denied.

Staff’s Justification: We haven’t heard that justification other than “we can.” And assuming that the District’s costs aren’t covered by the meager amounts the WCSD pays…One must ask why? Do our staff have so little to do so that if we weren’t using them to generate something, they’d be sitting on their behinds generating nothing?

Staff’s Funding Source: Given the revenue staff generate from the WCSD associated with maintenance of the subject athletic field is assigned to the District’s Community Services Parks sub-fund, we expect its expenses are buried within the same sub-fund. We submit that following Dillon’s Rule¹⁴ the District has no justification for maintaining the upper athletic field at Incline High with all that implies.

Conclusion: In our opinion it is a misuse of the NRS 318.197(1) (the power to fix rates, tolls and charges) to use the Recreation Facility Fee (“RFF”) as if it was a tax to pay for the maintenance of someone else’s properties!

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1. GIDs are authorized to “furnish services pertaining to any such basic power…the district may (permissibly) exercise” [see NRS 318.100(2)].
2. Consider that: NRS 318.258(9) instructs the services a GID “provide(s are those)…required by the owners of…real property;” NRS 318.197(2) instructs that “all rates, tolls or charges (adopted shall) constitute a perpetual lien on and against the property served;” NRS 318.201(10) similarly instructs that “the amount of the charges (elected to be collected on the tax roll) shall constitute a lien against the lot or parcel of land against which the charge has been imposed;” NRS 318.203 instructs that “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists that is not currently being charged for services provided…the board…of trustees…may adopt a resolution…to charge the owner (of that unit)…for the services provided;” NRS 318.170(1)(b) instructs that “all owners of inhabited property in the district (may be compelled) to use (and pay for) the district’s system for the collection and disposal of sewage, garbage and other refuse;” and, NRS 318.201(1) instructs that when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges for the forthcoming fiscal year collected on the tax roll…it shall cause a written report to be prepared…which shall contain 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.” In all of these examples it is the owner of real property who is charged for the services and facilities a GID provides to real property.
3. See ¶II at page 8 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada (“LCB”), Bulletin No. 77-11, Creation, Financing and Governance of General Improvement Districts, September 1976 (LCB Bulletin 77-11).
4. In Nevada counties, cities and unincorporated towns are general purpose governments because each is granted general powers to provide for the health, safety and welfare of its inhabitants. Counties are vested “with the appropriate authority to address matters of local concern” [see NRS 244.137(6)]. “The term…matters of local concern (expressly)…include(s those addressing)…public health, safety and welfare” [see NRS 244.143(2)(a)]. Cities are vested with express powers to: “provide for safeguarding public health” [see NRS 266.330(1)], “provide generally for the public safety” [see NRS 266.277(1)], and regulate and license (see NRS 266.355) which encompasses statements attesting to the welfare of the community [see NRS 425.520(2)]. Unincorporated towns are vested with express powers to: provide for “public health, safety and morals” [see NRS 269.190 et seq.], and, “protect the public health and welfare” [see NRS 269.227, 269.128, 269.171(1)]. In contrast, GIDs are not expressly permitted to exercise any of these powers.
5. See NRS 318.116.
6. See NRS 318.055(4)(b).
7. See NRS 318.077.
8. See NRS 318.055(4)(a).
9. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
10. See ¶1(A) at page 35 of IVGID’s 2019 Comprehensive Annual Financial Report (“the 2019 CAFR”).
11. See https://www.yourtahoeplace.com/ivgid/about-ivgid.
12. See ¶11 at page 10 of LCB Bulletin 77-11.
13. I the real world local residents are not the ones using the upper athletic field at Incline High. Rather, community youth organizations, working through IVGID as their conduit, are the ones who use the upper athletic field at Incline High
14. See Ronnow v. City of Las Vegas, 57 Nev. 332, 341-43, 65 P.2d 133 (1937) and NRS 244.137(1)-(4). Dillon’s Rule instructs that “a  municipal corporation possesses and can exercise the following powers, and no others: First, those granted in express words; second, those necessarily or fairly implied in or incident to the powers expressly granted; third, those essential to the accomplishment of the declared objects and purposes of the corporation – not simply convenient, but indispensable…Neither the corporation nor its officers can do any act, or make any contract, or incur any liability, not authorized thereby, or by some legislative act applicable thereto. (And) all acts beyond the scope of the powers granted are void” (Id., at 57 Nev. 343).