Many residents, even law makers, are of the opinion that since the Incline Village General Improvement District (“IVGID”) is a “local government,”¹ it is authorized to function just like and to exercise all powers every other form of local government they are familiar with is authorized to exercise. They argue IVGID “mirrors an official town…yet…(simply without a) Mayor.”² Moreover, because GIDs are “body corporate(s) and politic(s) and…quasi-municipal corporation(s),”³ these proponents argue IVGID can legitimately exercise every power any other general local government they’re familiar with⁴ can exercise. In fact, some argue IVGID can exercise even more powers (such as those privately owned businesses exercise) because GIDs are only “quasi-public” whereas every other local government they’re familiar with is 100% public⁵! But as you will learn, this “quasi-public” argument represents an improper application of the term insofar as the nature of a GID’s existence is concerned. Rather than the performance of its limited objectives (at least compared to a county, city or unincorporated town) being limited⁶, it is its powers which are limited. So with that said…

Prelude: We begin our analysis with the understanding “municipal corporations are solely the creation of the State. As such[,] they may exercise only those powers which have been delegated to them by the State legislature⁷. Accordingly, if no provision of the (Nevada) Constitution (n)or the (N)RS empowers the (District) to enact and enforce (an) ordinance (or resolution, it)…is invalid.” So the question. What powers have been delegated to GIDs by our State Constitution and Legislature?

Nevada Constitution: Article 8, §8 declares that the Legislature shall provide for/restrict the powers of all general purpose governments. Given the Legislature has chosen to provide for GIDs (see NRS 318), the powers proscribed for therein are the extent of those basic powers IVGID may legitimately exercise. And should there be any fair, reasonable, substantial doubt concerning the existence of any other powers, according to Dillon’s Rule (see discussion below), it should be resolved against the District and the power be denied¹¹.

Rule Making Powers: Across the country local governments are primarily empowered with two (2) types of rule making authority: Home Rule and Dillon’s Rule. The question over which “Rule” applies in a given circumstance “often arises when a county or municipality attempts to exercise a power, and…courts (are asked to)…determine whether authority exists under state law.”⁸ So let’s examine both, and discuss their applicability to Nevada local governments in general, and GIDs in particular.

“Home Rule: is an authority of a constituent part of a U.S. state to exercise powers of governance delegated to it by its state government⁷.” It

“Allows municipalities and counties to determine the structure and authority of…local government(, and it)…transfers authority over municipal matters from state law…to a local charter that’s drafted, adopted, and amended by voters in the municipality…(Basically, Home Rule allows)…the municipal government the ability to craft ordinances and make decisions based on local needs (i.e., local control), rather than having to follow a one-size-fits-all state code that’s decided by state legislators…(To) do anything that’s not specifically denied by the state constitution, the General Assembly, or (its) charter.”⁹

“Dillon’s Rule:” is a more complicated topic. It provides that

“A (local government)…possesses and may exercise only the following powers and no others: (a) Those…granted in express terms by the Nevada Constitution or statute; (b) Those…necessarily or fairly implied in or incident to th(os)e powers expressly granted; and, (c) Those…essential to the accomplishment of the declared objects and purposes of the (District) and not merely convenient but indispensable.”¹⁰

Dillon’s Rule also provides that

“If there is any fair or reasonable doubt concerning the existence of a power, that doubt is (to be) resolved against the (local government’s governing) Board (here the Board of Trustees)…and the power is denied.”¹¹

Since Nevada is a “Dillon’s Rule“ State¹², Explicit Statutory Authority Becomes Mandatory: If application of Dillon’s Rule were not clear from the its plain language, its construction is described in our discussion of how the Legislature has instructed us to interpret the powers a GID is authorized to exercise.” And for this reason, generations of Nevada lawyers have advised their local government clients to proceed with caution when it comes to (interpreting) the powers a governmental agency may exercise, relying upon explicit statutory language.”¹³ So with the foregoing in mind, let’s examine that explicit language insofar as GIDs are concerned:

1. Those Basic Powers Expressly Recited in a GID‘s Initiating Ordinance: NRS 318.055(4)(b) instructs that

A GID’s initiating ordinance must set forth “a statement of the basic power or basic powers for which the district is proposed to be created [for instance, (and) by way of illustration…’paving, curb and gutters, sidewalks, storm drainage and sanitary sewer improvements within the district’]” with the proviso those powers “must be one or more…as delineated…in NRS 318.116.”¹⁴

2. Those Basic Powers Not Provided For in a GID‘s Formation, Yet Added Via “Proceedings…Similar, as Nearly as May Be, to Those Provided For The Formation of The District, And With Like Effect:” NRS 318.077 instructs that

A GID’s Board of Trustees “may elect to add basic powers not provided in its formation, in which event (it) shall cause proceedings to be had by the board of county commissioners similar, as nearly as may be, to those provided for the formation of the district, and with like effect.” With the same proviso they are limited to “any one, all or any combination of the (above) basic powers (which) may be granted…in proceedings for (a GID’s) organization, or its reorganization…and all provisions in this chapter supplemental thereto, or as…otherwise provided by statute.”¹⁴

3. Those “Services Pertaining to Any Such Basic Power Which The District May Exercise:” NRS 318.100(2) instructs that

A GID “may…furnish services pertaining to any such basic power which the district may exercise.”

4. “All…Powers Necessary or Incidental to or Implied From The Specific Powers Granted in This Chapter:” NRS 318.210 instructs that

A GID’s Board of Trustees “shall have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter” (NRS 318). Examples (this is not an exhaustive list) would include those to: “construct or otherwise acquire any improvement appertaining to any such basic power which the district may exercise;”¹⁵ “finance the costs of any such improvement by any of the procedures provided in this chapter;”¹⁵ “operate, maintain and repair…improvements acquired by the district;”¹⁶ “fix…electric energy, cemetery, swimming pool, other recreational facilities, television, FM radio, sewer, water, storm drainage, flood control, snow removal, lighting, garbage or refuse rates, tolls or charges other than special assessments;”¹⁷ and, terminate the employ of “agents, employees, servants, engineers and attorneys, and any other persons (deemed un)necessary or (un)desirable.”¹⁸

5. Powers “Supplemented by…Sections of This Chapter (NRS 318) Designated Therein:” NRS 318.100(1) and NRS 318.116 instruct that

A GID’s Board of Trustees “shall have each of the basic powers enumerated in this chapter (and)…other provisions supplemental thereto in this chapter” Examples (this is not an exhaustive list) would include those to: “sue and be sued, and be a party to suits, actions and proceedings;”¹⁹ “borrow money and issue…(a) short-term notes, warrants and interim debentures, (b) general obligation bonds, (c) revenue bonds, [and] (d) special assessment bonds;”²⁰ “levy and collect (ad valorem) taxes;”²¹ “defray…by special assessment…improvement(s) and…other lands;”²² and, “take any property (via eminent domain) necessary to the exercise of th(os)e powers granted.”²³

6. Powers “Otherwise Authorized by Law:” NRS 318.100(1) instructs that in addition to “each of the basic powers enumerated in…chapter” NRS 318,

A GID’s Board of Trustees shall have those powers “otherwise authorized by law.” Examples (this is not an exhaustive list) would include those to: “enter into…cooperative agreement(s between)…two or more political subdivisions…for the performance of any governmental function;”²⁴ perform contracts and make expenditures both with²⁵ and without²⁶ going out to public bid; issue general obligation bonds either approved by the municipality’s electors²⁷ or “without an election” altogether, where “additionally secured by a pledge of…revenue of a project²⁸ to be financed by its issu(ance);”²⁹ “file or cause to be filed a petition…in…district court…praying (for) a judicial examination and determination of the validity of any power conferred or of any instrument, act or project;”³⁰ and, those “granted to municipalities by chapters 271³¹ and 704A³² of NRS.”³³

Conclusion: So there you have it! As a special purpose district³⁴, IVGID’s powers are expressly limited¹⁰ to those we have identified and none others. And should there be any doubt as to the extent of those powers, it must be construed against the District and the power is to be denied¹¹.

And now you know!

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1. NRS 354.474(1)(a) defines local governments as: “political subdivision(s) or other entit(ies) which ha(ve) the right to levy or receive money from ad valorem or other taxes…includ(ing), without limitation…districts organized pursuant to chapter…318.” IVGID fits this description.
2. See page 4 at https://e.issuu.com/embed.html?d=lwpnl_spr21&u=justimagine.
3. See NRS 318.075(1).
4. Such as a county, city or unincorporated town.
5. This is the narrative District staff have been publicizing to the world for decades. For instance, consider the District’s “WATER QUALITY CONSUMER CONFIDENCE REPORT(s)” which accompany utility customers’ billings. Under “About IVGID,” the public is schooled that the District “is a quasi‐public agency established under Nevada Revised Statute, Chapter 318.” Or the District’s Linkedin page: “The Incline Village General Improvement District, commonly referred to as IVGID, is a quasi-public agency established under Nevada Revised Statute, Chapter 318.” And unsurprisingly, that’s the exact script the world regurgitates. Just look at Washoe County’s and Tahoe Regional Planning Agency’s (“TRPA’s“) Tahoe Area Plan(s) which: at page 20 describes IVGID as “quasi-public” insofar as its ownership of “publicly owned land within the planning area” is concerned; at page 105 describes IVGID as the public entity which furnishes facilities and services within this planning area is concerned; and, at page 106 describes IVGID as a public utility. Or consider the dozens of third parties which routinely re-publicize this same falsehood. For instance, pinterest.com which describes “the Incline Village General Improvement District, commonly referred to as IVGID, as “a quasi-public agency chartered to provide water, sewer, trash and recreation services for the communities of Incline Village and Crystal Bay, Nevada.” Or crunchbase.com which describes IVGID as the same thing. Or the Incline Village/Crystal Bay Community and Business Association (“IVCBA“) which describes IVGID as only a “quasi-municipality.” When one reads stuff like this coming from sources one thinks are reputable public agencies/other community members, why would you the lay resident think anything different?
6. In other words, just like there can be nothing “quasi” about being pregnant, there can be nothing “quasi” about being a form of “government;” you either are or are not.
7. State v. Medeiros, 89 Haw. 361, 366, 973 P.2d 736 (1999); Nev. Const. Article 8, §8 (‘The legislature shall provide for the organization of cities and towns by general laws and shall restrict their power of taxation, assessment, borrowing money, contracting debts and loaning their credit, except for procuring supplies of water.’)
8. See https://ballotpedia.org/Home_rule#cite_note-nmml-1.
9. Go to https://whyy.org/articles/what-is-home-rule/.
10. See NRS 244.137(3).
11. See NRS 244.137(4)].
12. See NRS 244.137(2) which instructs that “in Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule to county, city and other local governments” like GIDs. Since this statute instructs that Dillon’s Rule applies to all forms of local government, most legal professionals will counsel it is equally instructive insofar as GIDs in particular are concerned.
13. Go to https://nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf.
14. That is, “1. Furnishing electric light and power…2. Extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica…3. Furnishing facilities or services for public cemeteries…4. Furnishing facilities for swimming pools…5. Furnishing facilities for television…6. Furnishing facilities for FM radio…7. Furnishing streets and alleys…8. Furnishing curbs, gutters and sidewalks…9. Furnishing sidewalks…10. Furnishing facilities for storm drainage or flood control…11. Furnishing sanitary facilities for sewerage…12. Furnishing facilities for lighting streets…13. Furnishing facilities for the collection and disposal of garbage and refuse…14. Furnishing recreational facilities…15. Furnishing facilities for water…16. Furnishing fencing…17. Furnishing facilities for protection from fire…18. Furnishing energy for space heating…19. Furnishing emergency medical services…20. Control of noxious weeds…(and,) 21. Establishing, controlling, managing and operating an area or zone for the preservation of one or more species or subspecies of wildlife that has been declared endangered or threatened pursuant to the federal Endangered Species Act of 1973, 16 U.S.C. §§1531, et seq.] supplemental thereto.”
15. See NRS 318.100(1),
16. See NRS 318.145.
17. See NRS 318.197(1).
18. Although NRS 318.180 gives a GID Board the power to hire and retain these individuals, nowhere does it give the power to terminate their employ. Thus the implied power of NRS 318.210.
19. See NRS 318.115.
20. See NRS 318.275(1).
21. See NRS 318.230(1).
22. See NRS 318.350(1).
23. See NRS 318.190.
24. See NRS 277.045(1).
25. See NRS 332.063, et seq.
26. See NRS 332.115.
27. See NRS 350.020(1).
28. Such as our Recreation (“RFF”) and/or Beach (“BFF”) Facility Fees.
29. See NRS 350.020(3).
30. See NRS 43.100.
31. “Creating…improvement district(s) in connection with any project and defraying the cost(s) thereof wholly or in part by the levy and collection of assessments against assessable property” (see NRS 271.017).
32. “real property, counties, cities and public utility corporations desire to construct new underground electric and communication services and to “Convert(ing) existing overhead electric and communication facilities to underground locations by establishing underground service districts” (see NRS 704A.010).
33. See NRS 318.101(1).
34. See NRS 308.020(2) which defines the term “special district” to “mean…any…general improvement district, or…other quasi-municipal corporation organized under the local improvement and service district laws of this State.”