Most people, even law makers, have no real idea what GIDs really are. Sure. They know they’re some form of local government¹. And specifically, some type of “political subdivision”² recognized by the Legislature in 1959³. And yes, they may even know that the acronym “GID” stands for “general improvement district.”⁴ But what do these words really mean? What type of local government are we talking about? What powers do GIDs have? And if not “general governmental powers,”⁵ how do they differ from those true municipalities like counties, cities, or unincorporated towns may exercise? And where exactly does one go to learn answers to these and other related questions⁶?

Simply stated, GIDs are limited purpose⁷ special districts². But what do these words really mean? Back in 1977 the subcommittee appointed by the Legislative Commission created “to conduct a study of The Methods of Creating, Governing and Financing General Improvement Districts…learned…there (wa)s…confusion over the legal definition…(because) the definition in NRS 308.020 (at the time really) provide(d) no assistance.”⁸ This omission was clarified by LCB Bulletin 77-11 which determined GIDs “provide various services”⁹ [along the lines of vector control (mosquitos), library, fire, water, sewer and cemeteries] to real property¹⁰, “in areas where such services (a)re not available and c(an)not be provided” by their counties of formation (for IVGID this is Washoe County either) because of their inability or unwillingness¹¹.

So now you know!

1. According to NRS 318.075(1), a GID is “a governmental subdivision of the State of Nevada, a body corporate and politic and a quasi-municipal corporation.”
2. NRS 41.0305 instructs that “the term political subdivision includes…any…special district that performs a governmental function, even though it does not exercise general governmental powers.” NRS 308.020(2) instructs that GIDs as well as “any other quasi-municipal corporation(s) organized under the local improvement and service district laws of this State” are “special districts.”
3. See pages 457-458 of Chapters 318-319, SB 20, 1959 Statutes of Nevada.
4. NRS 318.020(4) instructs that the words “general improvement district…mean…any general improvement district organized or, in the case of organizational provisions, proposed to be organized, pursuant to this chapter.”
5. Those incredibly broad regulatory powers related generally to “[p]ublic safety…health, morality, peace and quiet, (and) law and order” [see Berman v. Parker, 348 U.S. 26, 32, 75 S.Ct. 98 (1954)] also known as municipal police powers. These powers flow from the Tenth Amendment  to the U.S. Constitution which states that “[t]he powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” A state’s regulatory power then, is incredibly broad and is limited predominantly by the state constitution. Which in Nevada means Art. VIII, §8 which instructs that “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.”
6. After all, if one wants to learn about Nevada’s Open Meeting Law (“OML”) [see NRS 241.010, et seq.], the Office of the Attorney General (“OAG”) has created a Manual for this purpose (called the “Nevada Open Meeting Law Manual”). Similarly, if one wants to learn about Nevada’s Public Records law (“NPRA”) [see NRS 239.001, et seq.], the State has created a Manual for this purpose (called the “Public Records Act: a Manual for State Agencies”) Manual. So where is the manual for GIDs?
7. See A.G.O. No. 63-61, p. 102, at p. 103 (August 12, 1963).
8. See page 28 of Legislative Commission of the Legislative Counsel Bureau, State of Nevada’s (“LCB’s“), Creation, Financing and Governance of General Improvement Districts, September 1976 Bulletin 77-11 (“LCB Bulletin 77-11“)].
9. For a discussion of the limited facilities and services GIDs are authorized to furnish, the reader is directed to our discussion on The Powers All GIDs May Exercise.
10. This is what the legislative subcommittee found in 1976. After all, take a look at NRS 318.116. This is the statute which expressly declares the limited basic powers GIDs may exercise. And to make the case GIDs furnish services “required by the owners of…real property,” consider that NRS 318.258(9) instructs: “(b) the district can provide the services required by the owners of the real property;” and, “(c) the owners of the real property (will be the ones who will) pay the costs of providing…facilities.” And what services and facilities would those be? Electric light and power [NRS 318.116(1)]; streets [NRS 318.116(7)], curbs, gutters and sidewalks [NRS 318.116(8)]; street lighting [NRS 318.116(12)]; storm drainage and flood control [NRS 318.116(10)]; energy for space heating [NRS 318.116(18)]; water [NRS 318.116(15)]; sewerage [NRS 318.116(11)]; the collection and disposal of garbage and refuse [NRS 318.116(13)]; fencing [NRS 318.116(16)]; fire protection [NRS 318.116(17)]; the control of noxious weeds [NRS 318.116(20)]; and, the extermination and abatement of mosquitoes, flies, other insects, rats, and liver fluke or Fasciola hepatica [NRS 318.116(2)]. All benefits to real property.

    Now consider that the Incline Village General Improvement District’s (“IVGID’s”) Board of Trustees’ (“Board’s”) recognition that “each parcel assessed [the Beach (‘BFF’) and/or Recreation (‘RFF’) Facility Fee]…is specifically benefited” by the District’s recreation facilities for which it is assessed [see ¶4 at page 229 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“). As well as ¶4(c) at page 230 of the 5/26/2022 Board packet which recites “the availability of the use of IVGID’s (recreation facilities is a)…benefit…which inure(s) to said real properties“].

    Consequently, consider that: “all rates, tolls (and) charges (adopted for these services) constitute a perpetual lien on and against the (real) propert(ies) served” [see NRS 318.197(2)]; and, each charge which is elected collected is against each “lot or parcel of land against which the charge has been imposed” [see NRS 318.201(10)]. Accordingly, “where a dwelling unit (on a)…parcel of real property upon which the unit referenced…exists…is not currently being charged for services provided…(IVGID’s) board…of trustees…may adopt a resolution…to charge the owner (of that property)…for the services provided” (see NRS 318.203).

    Since “all owners of inhabited property in the district (are compelled) to use (and pay for) the District’s system for the collection and disposal of sewage, garbage and other refuse” [see NRS 318.170(1)(b)], when a “board which has adopted rates pursuant to this chapter…elect(s) to have such charges…collected on the tax roll…it…cause(s) a written report to be prepared…which…contain(s) a description of each parcel of real property receiving such services and facilities and the amount of the charge for each parcel for such year” [see NRS 318.201(1)]. Now take a look at the District’s trash Ordinance No. 1, sewer Ordinance No. 2, and water Ordinance No. 4. According to ¶5.9 of Ordinance No. 1, ¶14.05 of Ordinance No. 2, and ¶9.06 of Ordinance No. 4, “all charges, fees and amounts due and payable shall be billed to the owner of the premises, whether or not the owner is also the occupant.”

    What about IVGID’s recreation Ordinance No. 7? Who does IVGID ultimately look to for payment for the availability to access and use the recreational facilities and services allegedly furnished? According to ¶43 of Ordinance No. 7, parcels of real property [rather than the persons who are the ones eligible to access and use the same (i.e., “privileges”)]. For this very reason access and use are pre-conditioned upon a real property’s payment of “all property taxes, special assessments and recreation fees (assessed thereagainst)…for the current and prior years.”

    What about the beach facilities and services IVGID provides to the owners of those local parcels of real property with beach access? Again, access is pre-conditioned upon payment of the BFF local property owners with beach access are obligated to pay [see ¶43 of Ordinance No. 7].

    What about the defensible space aka fuels management services IVGID contracts with the North Lake Tahoe Fire Protection District (“NLTFPD”) to furnish? 50% of the cost is included in the water rates, tolls and charges local property owners are obligated to pay [see page 55 of the 2021-22 Annual Comprehensive Financial Report (“2021-22 ACFR“)]. And the other 50% is included in the RFF local property owners are obligated to pay (see page 56 of the 2021-22 ACFR).

    What about when the assets of a GID are proposed to be merged into an incorporated city? It is the vote (i.e., the “protest”) of local parcel owners (rather than non-property owning residents) within the district who shall determine whether to dissolve, merge or consolidate [see NRS 318.495(2)].

    What about voting for/against Board trustees [see NRS 318.0951(1)] or general obligation bonds [see NRS 350.020(1)]? At least up until 1977 (when the Legislature was under the mistaken belief it was unconstitutional for nonresident parcel owners to vote in elections notwithstanding their obvious primary interest therein), local parcel owners (aka “taxpaying electors”) were qualified to vote (see former NRS 318.09525).

    In all of these examples, it is or was the owner of real property who is or was ultimately afforded standing to protest or who actually protested all of the services and facilities IVGID provides or provided to real property.

11. See ¶II at page 8 of LCB Bulletin 77-11.