Many are of the opinion all local governments are empowered to adopt any “fees” of their choosing simply because they’re “government.” In fact, in Incline Village/Crystal Bay this opinion seems to extend to monetary exactions of all kinds¹! To these supporters, as long as the argument can be made that somehow, some way, they relate to the basic powers all GIDs are authorized to exercise. Simply because someone at sometime has disingenuously chosen to assign the “fee” label. But as we will demonstrate, such assertions are unwarranted.

Since each State defines for itself what powers it grants to local governments, and in Nevada those powers are expressly limited as “the legislature shall provide…and…restrict,”² the questions here³ are:

1. What powers GIDs have to fix rates, tolls and charges (aka “fees”⁴);

2. What “rates, tolls and charges” GIDs can “fix and from time to time increase or decrease;” and,

3. Given “as a general rule on local governmental power, Dillon’s Rule serves an important function in defining (its) powers…and remains a vital component of Nevada law,”⁵ “Appli(cation of) Dillon’s Rule” to the above.

Basic Power to Fix Fees: NRS 318.197(1) instructs that a GID “board may fix, and from time to time increase or decrease (various)…rates, tolls or charges⁴ other than special assessments.”

The Kinds of Fees GIDs Can “Fix And From Time to Time Increase or Decrease:” NRS 318.197(1) identifies the kinds of “rates, tolls and charges”⁴ GID Boards may “fix, and from time to time increase or decrease.” They “includ(e), but (notably are) not limited to…

Electric energy, cemetery, swimming pool, other recreational facilities, television, FM radio, sewer, water, storm drainage, flood control, snow removal, lighting, garbage or refuse…service charges and standby service charges, for services or facilities furnished by the district, charges for the availability of service, annexation charges, and minimum charges.”

Limitations on The Power Granted by NRS 318.197(1) to Fix And From Time to Time Increase or Decrease Fees in Light of Dillon’s Rule⁶: NRS 244.137(2) and 268.001(2) expressly instruct that “in Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule to county, city and other local governments⁷.” We understand there are an “absence of (reported cases) involving (the powers of) special districts” in light of Dillon’s Rule. Although this “absence…most probably…stems from the fact…such districts are created to carry out relatively narrow, statutorily specified purposes with the method of financing those activities…prescribed by the underlying statute⁸, this is far different from the situation Nevada cities and counties (with general powers) face. An increasing myriad of functions imposed by the state or federal governments, with a taxing regime almost fully centralized and controlled by the state government.”⁹ But this absence does not mean NRS 244.137(2) and 268.001(2) don’t mean expressly what they say¹⁰.

Dillon‘s Rule: So what exactly is Dillon’s Rule? Local governments “possesses and 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 (local government) and not merely convenient but indispensable¹¹…

(And) any reasonable doubt by the court as to whether a power has been granted will be (construed) against the local government.”¹²

Application of Dillon’s Rule to a GID‘s Powers: involves a three (3) part analysis:

1. As a “right…and power…incidental to or implied from”¹³ the specific power to “furnish services pertaining to any such basic power…granted in…chapter” NRS 318¹⁴, determining what District improvements will be accessible and subject to use;

2. As a power to “furnish services pertaining to any such basic power¹⁵…the district may exercise,”¹⁶ determining what services will be furnished; and,

3. The actual “fix(ing), and from time to time increas(ing) or decreas(ing various)…rates, tolls or charges…other than special assessments”¹⁷ for that access, use and services. furnished.

Since by its express words the Legislature has created the GID law¹⁸, the Incline Village General Improvement District (“IVGID”) is a GID¹⁹, and Dillon’s Rule limits the extent of the District’s “fee”⁴ fixing powers¹⁷, its power to “fix rates, tolls and charges” is as expressly recited above²⁰.

And now you know!

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1. Whether they be special assessments, taxes, or whatever.
2. See Article 8, Sec. 8 of the Constitution.
3. Because of NRS 244.137(2)-(4) and 268.001(2)-(4).
4. The term “rates, tolls and charges” represents different names for “specific services” for which “fixed price(s are) charged (see https://www.investopedia.com/terms/f/fee.asp). According to an AI search, a “rate is a fixed fee or cost per unit of service (often used for utilities like water or electricity). A toll is a fee paid for the use of a specific road, bridge, or tunnel, typically collected at designated points. A charge is a fee imposed for a service or product, which can vary based on usage or specific conditions.” The common denominator here being that all are fees!
5. See NRS 244.137(5) and 268.001(5).
6. See Tucker v. Mayor and Bd. of Alderman, 4 Nev. 20, 26 (1868); State ex rel. Rosenstock v. Swift, 11 Nev. 128 (1876).
7. We submit like GIDs. Because in City of Henderson v. Kilgore, 122 Nev. 331, 131 P.3d 11, 12 (2006) Dillon’s Rule was applied to invalidate a Nevada local government’s [the Government Employee-Management Relations Board’s (“EMRB’s”) – see NRS 288.080, et seq.] exercise of ultra vires powers (preliminary injunctive relief) [“NRS Chapter 288, does not expressly grant the (EMRB the) power to issue preliminary injunctive relief”]. Similarly, in Lamb v. Mirin, 90 Nev. 329, 526 P.2d 80, 82 (1974) our Supreme Court declared that “whenever a legislature sees fit to adopt a general scheme for the regulation of (a) particular subject, local control over the same subject, through legislation, ceases.” In other words, local governments “have no powers except those expressly granted by the Legislature” [see Waltz v. Ormsby County, 1 Nev. 370, 377 (1865)]. And here Dillon’s Rule has been expressly granted to “other governments” by the Legislature.
8. Isn’t this precisely the case with GIDs? Doesn’t NRS 318 prescribe “narrow, statutorily specified purposes (together) with the method of financing those activities?”
9. See https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf.
10. See our How Courts Instruct We Construe Those Statutes Which Impact GIDs discussion.
11. See NRS 244.137(3) and 268.001(3). As well as https://whyy.org/articles/what-is-home-rule/.
12. See NRS 244.137(4) and 268.001(4).
13. See NRS 318.210.
14. Given: NRS 318.175(2) instructs that “the board shall have the power…to…operate and maintain any district project;” and, NRS 318.145 instructs that “the board shall have the power to operate…the improvements acquired by the district,”
15. See NRS 318.100(2).
16. Such as: electric light and power [see NRS 318.116(1)]; energy for space heating [see NRS 318.116(18)]; emergency medical services [see NRS 318.116(19)]; the extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica [see NRS 318.116(2)]; and, controlling noxious weeds [see NRS 318.116(20).
17. See NRS 318.197(1).
18. See NRS 318.010.
19. See NRS 318.015(1) which instructs that “each district organized pursuant to the provisions of this chapter shall be a body corporate and politic…quasi-municipal corporation,” NRS 318.055(4)(a) instructs that “if the district is authorized to exercise more than one basic power…the initiating ordinance must set forth…the words ‘General Improvement District.'”
20. In other words, “in most instances, any claim of power…must be strictly and narrowly construed” [see A Discussion of Home Rule in Nevada published February 18, 2010 by the Committee to Study Powers Delegated to Local Governments].