As demonstrated elsewhere, general improvement districts (“GIDs”) are limited purpose special districts. Therefore their powers are strictly construed and limited¹ to those provided by the Legislature² as explicitly conferred by their County Boards of Commissioners (“County Boards”) in the GID’s initiating ordinance³ as supplemented, if at all, by: those “additional basic power(s expressly) granted…pursuant to NRS 318.077;”⁴ “sections of this chapter (NRS 318) designated therein;”³ and, none other¹. The basic powers the Washoe County Board has expressly granted to IVGID, which have been provided by the Legislature², consist of furnishing facilities for: streets, alleys and public highways⁵; curbs and gutters⁶; sidewalks⁷; storm drainage and flood control⁸; sanitary sewerage⁹; water¹⁰; lighting public streets, ways and places¹¹; the collection and disposal of garbage and refuse¹²; public recreation¹³; and, electric light and power¹⁴.

Introduction: Now look at NRS 318.116 and show us where GIDs are empowered to create, publish and distribute a magazine. Show us where the Washoe County Board has expressly granted this basic power to the District either in the latter’s initiating³ or supplemental⁴ ordinance(s). Show us how this power is necessarily or fairly implied in or incident to other powers expressly granted to the District. Show us how this power is essential to the accomplishment of the District’s declared objects and purposes – not merely convenient, but indispensable¹⁵. Notwithstanding the answers to these questions are a resounding nowhere and it is not, District staff think it’s perfectly permissible to spend any money the District receives, regardless of the source(s) or representation(s) giving rise to its receipt, on virtually anything of their choosing. And here the money is spent creating, publishing and distributing a spiffy, glossy magazine (The IVGID Quarterly) laden with pre-approved¹⁶ paid advertising! Thus the question here is whether it is permissible for IVGID to create, publish and distribute an advertising laden magazine to the general public and to involuntarily assess local parcel/dwelling unit owners the costs associated therewith?

The Particulars: The IVGID Quarterly is created, published and distributed six (6) times a year¹⁷. Each issue is “mailed (at IVGID’s expense) to 6,900 homes, including (those of) second homeowners living all across the United States. (An) additional 2,500 copies (are printed) for locals and distributed at amenity areas throughout Incline Village…Additional…copies (are)…inserted in (and distributed throughout the region) the (Tahoe Daily Tribune) Newspaper(. And) 5,000 additional copies (are)…distributed locally (including California). (Thus according to IVGID), each issue reaches over 20,000 people”¹⁷ notwithstanding: there are only 8,203 parcels/dwelling units assessed the Recreation Facility Fee (“RFF”)¹⁸; and, the permanent population of Incline Village/Crystal Bay is estimated at less than 8,700 persons¹⁹! Finally, there is no charge for The IVGID Quarterly inasmuch as it is freely given away.

The Costs the District Incurs: In addition to mailing costs of $4,041.09 ($3,691.38 plus $349.71) per issue²⁰, IVGID is charged $1,706.68 in additional printing costs for the additional 2,500 magazines printed for locals²¹. In fact from January 24, 2018 – January 23, 2020 [a period of two (2) years] IVGID spent $50,099.30 just with CC Media for the creation and mailing of its IVGID Quarterly Magazines (that’s nearly $25,500 per year or $2,125/month on average)! And in addition to the U.S. currency paid to CC Media, IVGID paid an additional $5,925/year in transferable Diamond Peak daily adult lift tickets²²; the District’s version of crypto-currency (a subject we will have more to talk about elsewhere). That’s another $493.75/month, on average, in lost revenue.

Additionally, there are the $273.47 in fees the District must pay the Tahoe Daily Tribune [six (6) times per year] to have The IVGID Quarterly stuffed into the former’s newspapers²³ which are distributed to the general public. Sometimes there are additional costs incurred for special services like $158.07 for placing holes in each magazine²⁴ so it can be used as a wall calendar²⁵. Or $150 or more for a photograph taken by an outside vendor which typically appears on the cover/inside of the magazine²⁶. Or $100 or more to someone who writes a “feature article” like Mark McLaughlin’s piece on Diamond Peak which appeared in the December 2016 edition of The IVGID Quarterly.

Finally, there are the thousands if not tens of thousands of dollars of unreimbursed staff time²⁷ incurred preparing content and approving layout/mock up for each edition of the magazine. Take a look at the Fall 2020 edition of the magazine²⁸ and the reader will see that Paul Raymore, IVGID’s Marketing Manager, is the magazine’s Managing Editor. And Kari Ferguson, IVGID’s Communications Coordinator, is the magazine’s Copy Editor. And Kerrie Tonking, a Parks & Rec Admin Coordinator, is the magazine’s front page photographer. And IVGID employees/dedicated third party contractors Randy Berg, Neill Gunn, Bev Keil, Tim Kelly, Shelia Leijon, Trish McKowen, Sandi Soli, Kyle Thornburg, Jill Whistler and Ashley Wood were all contributors to the magazine.

Add up all of these latent and patent costs, and can you see how they easily exceed $20,000/issue?

The Magazine’s Funding Source: The District does not provide ala carte financial reporting associated with the costs associated with The IVGID Quarterly. So members of the public are forced to sift through the District’s records and financial reporting (which by-and-large are not made available unless a requester makes a formal public records request) to piece together what we’ve pieced together here. So where does the money come from to create The IVGID Quarterly? You may be answering to yourself the advertising revenue each edition generates. If so you’d be mistaken. Rather than IVGID it is CC Media which is entitled to “retain all advertising sales revenue” generated²⁹. Therefore just like nearly everything else the public’s staff administer, the costs associated with creating, publishing and distributing The IVGID Quarterly require a financial subsidy from somewhere. And that somewhere ends up being the RFF/BFF involuntarily assessed against all non-exempt parcels/dwelling units within IVGID’s boundaries.

The RFF/BFF Represent The IVGID Quarterly’s “Go To” Funding Source: The District publishes a weekly payment of bills at https://www.yourtahoeplace.com/ivgid/financial-transparency/weekly-bill-payments. If one goes through those payments, one will discover payments to CC/Creative Concepts Media for the printing, mailing and other reimbursable costs associated with The IVGID Quarterly³⁰. As the reader can see, the portion of payments assigned to the District’s Community Services Fund was directly subsidized by the RFF³¹. The portion assigned to the District’s General Fund was indirectly subsidized by the RFF, BFF and the utility rates paid/ultimately guaranteed by local parcel/dwelling unit owners³². And in all instances, the costs associated with The IVGID Quarterly have nothing to do with making the District’s public recreation/beach facilities available for local properties’ access and use, nor a cost associated with delivery of water/sewer services.

Creating, Publishing and Distributing The IVGID Quarterly is Not an Economically Sound and Feasible Endeavor: Apart from the fact the District has no power to create a magazine, NRS 318.055(4)(c)(2) instructs that before a GID can be granted a new basic power, its County Board must find “that…(the granting of this power, once exercised, will be) economically sound and feasible.”³³ Given the District is required to involuntarily assess local parcel/dwelling unit owners nearly $7 million or more annually in financial subsidies assigned to its Community Services and Beach Funds, and payment of the subject magazine ultimately comes from that subsidy (see discussion above), we submit the District has no power to create and distribute The IVGID Quarterly because it is economically unsound and unfeasible.

For Whose Benefit Does The IVGID Quarterly Exist? According to staff, the owners of local parcels/dwelling units. However, that’s not true. In today’s era of information technology, any parcel/dwelling unit owner wanting to learn what’s going on in Incline Village/Crystal Bay, or what recreation/beach facilities and services the District offers, can very easily learn by going to the District’s web site. Or reading the free, weekly Tahoe Daily Tribune Newspaper. Or picking up copies (which are mostly free and available at numerous local merchants and online) of the Tahoe, Tahoe Quarterly, Live. Work. Play, Moonshine Ink, or Tahoe Weekly Magazines. Or visiting the many social media pages addressing Incline Village/Crystal Bay (such as Next Door, Facebook, IVGID comm, Our Village Voice, Community First, IV/CB Matters, etc.) which all serve as information resources for matters of local concern. Or visitor web sites such as Go Tahoe North, IVCBA, and RSCVA. The District livestreams its Board meetings, and its meeting agendas and supporting materials are posted and archived online. It employs a full time Communications Coordinator, and spends nearly $1.2 million annually on marketing and communications³⁴! Therefore the truth of the matter is that very last thing our community needs is another throw away³⁵ magazine! To assert that local property owners whose properties/dwelling units are assessed the RFF/Beach Facility Fee (“BFF”) don’t know what recreation facilities/services are available (which is what staff assert), is simply disingenuous at best and an intentional falsehood at worst.

Well if not for local parcel/dwelling unit owners, then for whom? Staff, staff, staff and their “favored collaborator” advertisers. With 1,012 or more employees³⁶ many in our community have complained for some time that the District has way too many employees who apparently don’t have enough public work to do to warrant full time jobs. And here we have stark evidence of this truism. Putting out a quality magazine six (6) times a year is a major endeavor. How do the magazine’s Managing and Copy Editors have the time to attend to The IVGID Quarterly and still perform their public jobs? And the same with the many staff contributors highlighted in each edition of the magazine. Because our staff don’t have enough work to keep themselves busy, senior management have found other meaningless and unnecessary jobs to keep them busy. And Exhibit “A” in support of this assertion is The IVGID Quarterly. We submit that if staff didn’t have to split their time working on The IVGID Quarterly, they wouldn’t need to be employed on a full time basis. And if they weren’t full time employees, local parcel/dwelling unit owners wouldn’t have to provide costly benefits like health, dental, disability, life insurance, retirement, free or severely discounted recreation privileges for our employees and their household members, etc. And if we didn’t have as many full time employees, we wouldn’t need a Human Resources (“HR”) Department. Nor our own $500,000+ payroll software. Nor our Information Technology (“IT”) Department to keep it running. Are you starting to get the picture?

Moreover, take a look at some of the articles which appear in the magazine. What we see are subliminal efforts to justify authors’ and their public employee colleagues’ continued public employment. Many paint our public employees in the most positive light. Look at our recreation venue managers. Look at all we’ve accomplished. Look at our trustees (for re-election purposes). Look at their bios. Look how wonderful we’re doing at each of our venues. Look how we’re losing nearly $7 million annually operating the public’s recreational facilities as if they were private, commercial, “for profit,” business enterprises³⁷! Ladies and gentlemen, The IVGID Quarterly is nothing more than a staff propaganda tool! After all, who determines content within the magazine³⁸? And when our un-elected General Manager (“GM”) has the power to exercise unilateral censorship over what appears in this magazine³⁹ (which he regularly does), how can anyone expect anything less than self-serving propaganda?

NRS 205.300(1): Given the District represents (as elsewhere discussed) that: the RFF pays for the (mere) availability to access and use the public’s recreation facilities; the BFF pays for the (mere) availability to access and use the District’s beach facilities; and, the District’s utility rates pay for the just and reasonable⁴⁰ costs it incurs for the water and sewer services it furnishes; here we see all three have been used to cover the General Fund’s shortfall caused by the County’s ad valorem tax offset. Although arguably the District may have the power to disseminate written propaganda under the guise of “information,” we submit that using the RFF/BFF and the utility rates it charges for this purpose is a violation of NRS 205.300(1)⁴¹. So if the RFF/BFF cannot legitimately be used to create, publish and distribute a magazine simply because “the ends justify the means,” where do staff get off exercising this power to the contrary?

The District’s Justification For Exercising This Power: We believe there is none. However, if you’d like to consider the Board’s/staff’s perceived justification, you’re directed to our Staff’s/the Board’s Justification For Exceeding the Limited Powers the District May Permissibly Exercise page. And not that justification can come from what any of the eighty-four (84) [as of fiscal year 2011] or more other Nevada GIDs in the State⁴², how many do you think create and publish an advertising laden magazine distributed to the general public as a whole? What about Nevada special districts⁴³ other than GIDs like school, library, transportation, irrigation or fire protection districts? To our knowledge there are none! We submit that because the overwhelming majority of other GIDs in the State do not create, publish and distribute magazines to the general public like The IVGID Quarterly, neither should IVGID!

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 RFF/BFF as if they were taxes to pay for creation and distribution of a magazine!

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1. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
2. See NRS 318.116.
3. See NRS 318.055(4)(b).
4. See NRS 318.055(4)(a).
5. See sec. 3(a) of Ordinance 97, Bill 57, as authorized by NRS 318.116(7).
6. See sec. 3(b) of Ordinance 97, Bill 57, as authorized by NRS 318.116(8).
7. See sec. 3(c) of Ordinance 97, Bill 57, as authorized by NRS 318.116(9).
8. See sec. 3(d) of Ordinance 97, Bill 57, as authorized by NRS 318.116(10).
9. See sec. 3(e) of Ordinance 97, Bill 57, as authorized by NRS 318.116(11).
10. See sec. 3(g) of Ordinance 97, Bill 57, as authorized by NRS 318.116(15).
11. See sec. 3(i) of Ordinance 97, Bill 102, as authorized by NRS 318.116(16).
12. See sec. 3(j) of Ordinance 97, Bill 102, as authorized by NRS 318.116(13).
13. See sec. 21.5 of former NRS 318.143(1) [SB297, Chapter 413, page 1088, 1965 Statutes]. At the next legislative session this provision was amended to delete the word “public” [see sec 63 of former NRS 318.143(1) {SB408, Chapter 582, page 1714, 1967 Statutes}]. At the same time sec. 24 of former NRS 318.116 was adopted [SB408, Chapter 582, page 1693, 1967 Statutes] which added the basic power of “furnishing recreation facilities.” Today this basic power appears at NRS 318.116(14).
14. See sec. 3(l)(1) of Ordinance 97, Bill 227, as authorized by NRS 318.116(1).
15. Recall that NRS 244.137 instructs that “(1) Historically under Nevada law, the exercise of powers by a board of county commissioners has been governed by a common-law rule on local governmental power known as Dillon’s Rule, which…set(s) forth the common-law rule defining and limiting the powers of local governments…Dillon’s Rule provides that a board of (a local government)…may exercise only the following powers and no others: (a) Those powers granted in express terms by the Nevada Constitution or statute; (b) Those powers necessarily or fairly implied in or incident to the powers expressly granted; and, (c) Those powers essential to the accomplishment of the declared objects and purposes of the county and not merely convenient but indispensable. (4) Dillon’s Rule also provides that if there is any fair or reasonable doubt concerning the existence of a power, that doubt is resolved against the (governing) board…and the power is denied.” Although this statute literally applies to county governments, since it accurately instructs that Dillon’s Rule applies to all forms of local government, most legal professionals will counsel it is equally instructive insofar as GIDs are concerned.
16. We say “pre-approved” inasmuch as “use, type and display criteria of all advertisements in The IVGID Quarterly shall be determined by IVGID’s General Manager or, in the case of his absence, his designee” (see http://cc.media/wp-content/uploads/2019/12/CCMedia-Publications-Media-Kit-2020.pdf).
17. According to its publisher, Creative Concept (“CC”) Media, the following magazines are published: February, Spring/Summer Activity Guide (April), June, Fall/Winter Activity Guide (August), October and December (go to http://cc.media/wp-content/uploads/2019/12/CCMedia-Publications-Media-Kit-2020.pdf).
18. See page 153 of the packet of materials prepared by staff in anticipation of the Board’s May 7, 2020 meeting [https://www.yourtahoeplace.com/uploads/pdf-ivgid/5-7-2020_Workshop_Packet.pdf (“the 5/7/2020 Board packet”)].
19. Go to https://worldpopulationreview.com/us-cities/incline-village-nv-population.
20. See this April 29, 2020 check #773683 (https://www.yourtahoeplace.com/uploads/pdf-ivgid/IVGID_Check_Run_04.16.20_to_04.29.20.pdf) to the printer of the magazine for the spring 2020 issue. This charge is backed up by CC Media’s invoice #024215 which appears at page 272 of the 10/27/2020 Board packet (note: this charge equates to nearly $1,350 per month).
21. See CC Media’s invoice #023330,which appears at page 274 of the 10/27/2020 Board packet (note: this charge equates to $0.68275 per magazine).
22. See page 287 of the 10/27/2020 Board packet which recites: “IVGID’s duties…(include)…provid(ing)…(75) Diamond Peak Ski Resort transferable…Daily Lift Ticket (voucher)s per contracted ski season, valued at $79 each.”
23. See Sierra Sun invoice #0000212243 which appears at page 278 of the 10/27/2020 Board packet.
24. See Panda Printing & Mailing invoice #32258 which appears at page 279 of the 10/27/2020 Board packet.
25. See the calendar inside the October 2019 issue of the magazine (go to https://www.yourtahoeplace.com/uploads/pdf-ivgid/IVGID_Qrtly_OCT-2019.pdf).
26. The Spring 2020 edition of The IVGID Quarterly has a photograph on the front cover which is credited to Jen Schmidt Photography. Previous editions of the magazine have credited cover photography to local photographers Chris Talbot, Philip England and Ryan Salm. Although a prior public records request asked for Ms. Schmidt’s invoicing for her photograph identified above, Ms. Herron responded there was none. We don’t believe Ms. Herron’s response. Professional photographers don’t work for free and in contrast, a different $150 invoice from Ms. Schmidt for a different IVGID photography assignment appears at pages 281-282 of the 10/27/2020 Board packet. In our opinion this is likely the minimal fee incurred for the subject photograph which explains why it is assigned here as a cost.
27. On July 1, 2020 a local resident made a records request upon IVGID’s Public Records Officer (“PRO”), Susan Herron, asking to examine records evidencing the time each staff member contributing to the magazine devoted to performing any work whatsoever associated with the Spring 2020 edition of The IVGID Quarterly. On July 7, 2020 Ms. Herron provided the following response: “staff doesn’t keep track of their time and therefore there are no public records to provide.” The local resident’s records request and Ms. Herron’s response with an asterisk next to the quoted language appear at page 276 of the 10/27/2020 Board packet.
28. See page 4 of the Fall Edition of The IVGID Quarterly.
29. See page 286 of the 10/27/2020 Board packet.
30. For instance, go to the bill pays for the period July 1-8, 2021. There you will find a July 8, 2021 payment to CC/Creative Concepts Media. You will see that staff have assigned half the payment to chart of account (“COA”) number 100-14-170-7010, and the other half to COA number 360-49-990-7470. Go to the bill pays for the period June 18-24, 2021. There you will find the same thing. Staff have assigned half the payment to COA number 100-14-170-7010, and the other half to COA number 360-49-990-7470. Staff used to publish a Legend of Accounts to its COA on the “Financial Transparency” portion of the District’s web site. But whenever the public is able to navigate the dark depths of staff’s financial reporting system, all of a sudden, it becomes UNtransparent. And that’s what has happened here. Nonetheless, one can find that legend at pages 394-404 of the packet of materials prepared by staff in anticipation of the Audit Committee’s January 27, 2021 meeting (“the 1/27/2021 Audit Committee Packet“). The first three (3) COA numbers reveal the fund/sub-fund to which the charge has been assigned. And through prior experience we know that: the first “100” corresponds to the District’s General Fund; the first “360” corresponds to the District’s Community Services Other Recreation Administration Sub-Fund; the last “7010” corresponds to paid advertising; and, the last “7470” corresponds to printing and publishing.
31. As elsewhere discussed, staff budget to spend more than the revenues they assign to the District’s Community Services Fund! This overspending is subsidized by the RFF.
32. As elsewhere discussed, staff budget to spend more than the revenues they assign to the District’s General Fund! This overspending is subsidized by “Central Services Cost Allocation Income.” In other words, transfers from the District’s Utility, Community Services and Beach Funds.
33. Although this statute technically speaks of before a GID can be created, very early on (see attorney E.A. Wilson’s August 26, 1965 letter to the Washoe County Board) the District took the position this same requisite applies whenever a GID seeks new basic powers.
34. See page 107 of the packet of materials prepared by staff in anticipation of the Board’s March 11, 2020 meeting (“the 3/11/2020 Board packet“).
35. We say “throw away” because to gauge the true value of this magazine to those to whom it is mailed, we suggest the reader go to the Incline Village and Crystal Bay post offices at/about the magazine’s mailing day. Hundreds if not thousands of (presumably unread) magazines get thrown away into the large, strategically placed waste bins provided in both lobbies.
36. Go to https://transparentnevada.com/salaries/2019/incline-village-general-improvement-district/.
37. Oops. The reader won’t find anything like this in The IVGID Quarterly; guaranteed! We just wanted to see if you were paying attention.
38. “IVGID’s duties will be to provide…content” [see page 286 of the packet of materials prepared by staff in anticipation of the Board’s October 27, 2020 meeting (“the 10/27/2020 Board packet“)].
39. “IVGID has the right, in its sole and exclusive discretion, to approve and exclude…any advertisement or advertiser” (see page 287 of the 10/27/2020 Board packet).
40. See NRS 704.040(1) which instructs “the charges made for any (utility) service rendered or to be rendered, or for any service in connection therewith or incidental thereto, must be just and reasonable.”
41. Which states that “any bailee of any money, goods or property…with whom any money, property or effects have been deposited or entrusted, who uses or appropriates the money, property or effects or any part thereof in any manner or for any other purpose than that for which they were deposited or entrusted, is guilty of embezzlement, and shall be punished in the manner prescribed by law for the stealing or larceny of property of the kind and name of the money, goods, property or effects so taken, converted, stolen, used or appropriated.”
42. See Table 1 of University of Nevada Cooperative Extension Fact Sheet-13-32, Funding Economic Development in Nevada: General Improvement Districts, Frederick Steinmann (2012).
43. GIDs are “special districts” [see NRS 308.020(2)].