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What Are Recreation (“RFF”) And Beach (“BFF”) Facility Fees (at Least According to Staff), How Are They Determined, And Where Does The Money Come From?

IVGID 101 Posted on by

If one examines the Incline Village General Improvement District’s (“IVGID’s”) revenue sources assigned to recreation (but for the beaches), at least up until fiscal year 2019-20 nearly 25% of reported operational revenue came from the RFF1. And were it not for the RFF, staff overspending would have exceeded revenues by at least a like amount.

Similarly if one examines the District’s revenue sources assigned to the beaches, again at least up until fiscal year 2019-20, nearly 40% of reported operational revenue came from the BFF2. And were it not for the BFF, staff overspending would have exceeded revenues by at least a like amount.

Because the RFF/BFF comprise such a very large percentage of the funding sources for IVGID’s public recreation and beach expenditures, we feel it important to understand exactly what these revenue sources are, and whether what’s represented is truthful. Hence this discussion.

How The RFF/BFF Are Determined: As elsewhere explained, “each year, the District establishes…annual Recreation…and Beach Facility Fee(s)…collected from property owners within the District through a levy placed on the(ir) property tax bill(s).”3 In accordance with NRS 318.201(1), “staff…prepare (a) Report for (their) collection…recreation standby and service charges (also known as the RFF and the BFF)…on the Washoe County Tax Roll…At (a publicly noticed) meeting (generally held in April of each year) the Board of…Trustees t(akes) action [via resolution {pursuant to NRS 318.201(7)}]…to approve (a) preliminary Report…as well as (to) set…(a) public hearing (date, generally held in May of each year)…to consider final action…for”3 the forthcoming fiscal year…Upon the conclusion of the hearing the Board (typically)…adopt[s another resolution In accordance with NRS 318.201(8)]…which…contain(s) a description of each parcel of real property (allegedly) receiving…services and facilities(, and) the amount of the charge for each parcel for such year.”4

How The RFF/BFF Are Collected: Concurrent with the Board adopting a resolution establishing annual Recreation and Beach Facility Fee[s (see above)], its “Secretary prepare(s) and file(s the Board’s.)…final Report…with the county assessor for inclusion on the assessment roll.”5 “The county treasurer (then) include(s) the amount of the charges on bills for taxes levied against the respective lots and parcels of land. Thereafter, the amount of the charges (are)…collected at the same time and in the same manner and by the same persons as, together with and not separately from, the general (ad valorem) taxes for the county.”6

What The RFF/BFF Represent: ¶4 of the resolution the Board ultimately adopts finds that the RFF/BFF are “service charges and standby and service charges for…the (mere) availability of the use of IVGID’s beaches; boat launch ramp; Championship golf course; Mountain golf course; tennis facilities; the Chateau and Aspen Grove; Diamond Peak Ski Resort, and Recreation Center;”7 i.e., facilities. ¶I of the final report adopted pursuant to ¶6 of the resolution finds that the RFF/BFF represent “annual charges…for the availability of use of the (District’s) recreational (and beach) facilities…described.”8 What the Board is really telling the public is that the RFF/BFF allegedly represent NRS 318.197(1) “rates, tolls or charges other than special assessments…for…(the recreation and beach) facilities furnished by the district.” Or more pointedly, “standby service charges for…the (mere) availability of” facilities.

Conclusion: So now you know!

  1. Page 28 of IVGID’s latest (2019) Comprehensive Annual Financial Report (“the 2019 CAFR”) depicts a statement of revenues and expenses assigned by staff to the District’s Community Services Fund (the one used to financially report system wide revenues and expenses assigned to recreation but for the beaches). Putting aside the fact history demonstrates that the public cannot rely upon the accuracy of the financial information staff report, this page depicts $23,470.789 of yearly operational revenue. And of this amount, $5,822,775 represents RFF revenue. In other words, 24.8% of operational revenue assigned by staff to the District’s Community Services Fund is subsidized by the RFF.
  2. Page 29 of the 2019 CAFR depicts a statement of revenues and expenses assigned by staff to the District’s Beach Fund (the one used to financially report system wide revenues and expenses assigned to the beaches). Again understanding that the public is skeptical of the accuracy of the financial information staff report, this page depicts $2,467.808 of yearly operational revenue. And of this amount, $975,121 represents BFF revenue. In other words, 39.5% of operational revenue assigned by staff to the District’s Beach Fund is subsidized by the BFF.
  3. See page 102 of the packet of materials prepared by staff in anticipation of the Board’s May 27, 2020 meeting (“the 5/27/2020 Board packet”).
  4. See NRS 318.201(9).
  5. See NRS 318.201(9).
  6. See NRS 318.201(11).
  7. See pages 229-230 of the packet of materials prepared by staff in anticipation of the Board’s May 26, 2022 meeting (“the 5/26/2022 Board packet“).
  8. See page 234 of the 5/26/2022 Board packet.

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