How GIDs Are Created

General Improvement Districts (“GIDs”) are initiated at the prerogative of Boards of County Commissioners1 (“County Boards”) either by resolution “adopted by the…County” Board2 itself, or (by) “petition proposed by any owner of (real) property to be located (with)in the (new proposed) district” resulting in such a resolution3.

Prior to 1965 there were no stated justifications for County Boards to create GIDs. But that all changed with passage of NRS 318.055(2)(c) in 19654, and NRS 318.055(4)(c) in 19775. But due to the judicial rule of non-retroactivity6, GIDs created prior to 1965 or 1977 (like IVGID) are not required to adhere to these justifications. Moreover, given NRS 308.010(3)7 declares that

“To avoid excessive diffusion of local tax sources (and to)…prevent (the) unnecessary proliferation and fragmentation of local government…the creation of new districts” subject to the above requirements is “(dis)couraged,”

It is unlikely the current NRS 318.055(4)(c) requirements of: “public convenience and necessity,” and that “the district (be) economically sound and feasible” will ever be imposed on GIDs such as IVGID.

So now you know!

  1. See NRS 318.070(2).
  2. See NRS 318.055(1)(a).
  3. See NRS 318.055(1)(b).
  4. Which stated that a GID’s “initiating ordinance shall set forth…a statement that the ordinance creating such district w(ould) be based on the board’s finding: (1) That the public convenience and necessity require the creation of such district; and, (2) That the creation of such district is economically sound and feasible.”
  5. Which stated that in addition to the board’s finding: (1) That the public convenience and necessity require the creation of such district; and, (2) That the creation of such district is economically sound and feasible,” its “initiating ordinance must set forth…a statement that the ordinance creating the district will be based on the board’s finding…(3) The service plan for the district conforms to subsection 1 of NRS 308.030; and, (4)…(it) does not contravene any of the criteria enumerated in subsection 1 of NRS 308.060.”
  6. See Alsenz v. Twin Lakes Village, Inc., 108 Nev. 1117, 843 P.2d 834, 837 (1992) [“the 1983 statutes of repose do not apply retroactively to actions commenced before the effective date of the recent amendment to the statutes of repose”].
  7. According to NRS 308.020(2) “as used in this chapter, ‘special district’ means any…general improvement district, or…other quasi-municipal corporation organized under the local improvement and service district laws of this State.”