Many are of the opinion all local governments are empowered to adopt any “fees” of their choosing simply because they are “governments.” In fact, in Incline Village/Crystal Bay this opinion extends to monetary exactions of all kinds as long as the argument can be made those exactions somehow relate to the powers the District is authorized to exercise. Simply because someone at sometime disingenuously chose to assign the “fee” label. But as will be demonstrated, such opinions are not warranted. Since each State defines for itself what powers it grants to its local governments, and in Nevada they’re limited as “the legislature shall provide…and…restrict,”¹ the questions here are: what powers do GIDs have to fix rates, tolls and charges²; and, what fees in particular may they fix? The answers appear at Title 25³ of Chapter NRS 318. And because of NRS 244.137(2)-(4) and 268.001(2)-(4),

“The Nevada Supreme Court has adopted and applied Dillon’s Rule⁴ to county, city and other local governments.”⁵

The Rule⁶ instructs that: a local government’s powers⁷ are limited and only extend to those which are:

1) Granted in express words;

2) Necessarily implied or…incident to…powers expressly granted; and,

3) Absolutely essential to the declared objects and purposes of the (municipal) corporation – not simply convenient, but indispensable⁸.

The Rule also states that any reasonable doubt by the court as to whether a power has been granted will be (construed) against the local government.”⁹

The powers GIDs” have to fix rates, tolls and charges¹⁰ generally, and the fees they may fix, involves a three (3) part analysis:

1. The “fix(ing), and from time to time increas(ing) or decreas(ing various)…rates, tolls or charges¹¹ other than special assessments.”¹²

2. Those rates, tolls and charges may extend to “services pertaining to any such basic power¹³…the district may exercise;”¹⁴; and,

3. As a “right…and power…incidental to or implied from (a) specific power (i.e., furnishing services¹³ instructs that “the district may…furnish services pertaining to any such basic power which the district may exercise.”[/efn_note])…granted in…chapter”¹⁵ NRS 318¹⁶.

Since by its express words the Legislature has created the GID law¹⁷; the Incline Village General Improvement District (“IVGID”) is a GID¹⁸; and, Dillon’s Rule depicts the extent of the District’s rate fixing powers⁶; its power to fix rates, tolls and charges is as expressly recited above. In other words, “in most instances, any claim of power…must be strictly and narrowly construed.”¹⁹

And now you know!

1. See Article 8, Sec. 8 of the Constitution.
2. We believe the NRS 318.197(1) term (see below) “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). In other words, “fees.”
3. See Public Organizations for Community Service (go to https://www.leg.state.nv.us/nrs/).
4. See Tucker v. Mayor and Bd. of Alderman, 4 Nev. 20, 26 (1868); State ex rel. Rosenstock v. Swift, 11 Nev. 128 (1876).
5. We submit like GIDs. 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 exercise of ultra vires powers [“NRS Chapter 288, does not expressly grant the Employee-Management Relations Board (the) power to issue preliminary injunctive relief and…such power cannot be implied”]. 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 government has no express powers. Stated a bit differently, the officers of a local government “have no powers except those expressly granted by the legislature(; a principle)…too well established to admit of question now” [see Waltz v. Ormsby County, 1 Nev. 370, 377 (1865)].
6. See NRS 244.137(3) and 268.001(3).
7. We understand there are an “absence of (reported cases) involving (the powers of) special districts,” in particular, in light of Dillon’s Rule. 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 statute. This is far different from the situation Nevada cities and counties 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” [see https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf]. In other words, local governments have no express powers.
8. Also go to https://whyy.org/articles/what-is-home-rule/.
9. See NRS 244.137(4) and 268.001(4).
10. 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 being that all are fees.
11. Those rates, tolls and charges may “includ(e), but not be limited to, service charges and standby service charges, for services or facilities furnished…charges for the availability of service, annexation charges, and minimum charges.”
12. see NRS 318.197(1).
13. See NRS 318.100(2).
14. 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).
15. See NRS 318.210.
16. 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;” the right to charge rates, tolls and charges for access to and use of those improvements is “incidental” to specific powers granted in NRS 318.
17. See NRS 318.010.
18. 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” and GID. And 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.'”
19. See A Discussion of Home Rule in Nevada published February 18, 2010 by the Committee to Study Powers Delegated to Local Governments.