Nev. Const. Art. 8, Sec. 8: As elsewhere discussed, we begin our analysis with the Nevada Constitution given it “is the ‘supreme law of the state which ‘control[s] over any conflicting statutory provisions.’”¹ Nev. Const. Art. 8, Sec. 8 instructs that the Legislature shall provide for/restrict the powers of all general purpose governments. Since the Legislature has created the GID law², and the Incline Village General Improvement District (“IVGID”) was created as a GID³, IVGID’s powers are recognized/restricted by NRS 318.

NRS 318.275: instructs that “upon the conditions and under the circumstances set forth in this chapter (NRS 318), a district may borrow money and issue the following securities to evidence such borrowing:

(a) Short-term notes, warrants and interim debentures⁴;

(b) In accordance with the provisions of the Local Government Securities Law⁵…general obligation bonds⁴…and other general obligation securities payable from general (ad valorem) property taxes⁵…;

(c) In accordance with the provisions of the Local Government Securities Law⁵…general obligation bonds and other general obligation securities payable from general (ad valorem) property taxes, the payment of which securities is additionally secured by a pledge of and lien on net revenues⁶…;

(d) Revenue bonds⁷…and other securities constituting special obligations and payable from net revenues, but excluding the proceeds of any general (ad valorem) property taxes or any special assessments, which payment is secured by a pledge of and lien on such net revenues⁸…;

(e) Special assessment bonds⁹…; or,

(f) Any combination of such securities¹⁰.”

NRS 244.137(2): Given NRS 244.137(2) instructs that “in Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule¹¹ to county, city and other local governments,”¹² and thus Nevada is a Dillon’s Rule State, we refresh the reader’s recollection of the Rule¹³. That is, that a local government’s powers 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 indispensable¹⁴. The rule also states that any reasonable doubt by the court as to whether a power has been granted will be ruled against the local government.”¹⁵ Since by its express words the Legislature has created the GID law², which includes the express statutory provisions noted above insofar as the issuance of notes, warrants, debentures and bonds are concerned, and the Incline Village General Improvement District (“IVGID”) is a GID¹⁶, the District’s power to borrow and issue notes, warrants, debentures and bonds is recognized/restricted by NRS 318.

Conclusion: So there you go! Now you know what statutory authority exists for GIDs to borrow and issue notes, warrants, debentures and bonds. As you examine the borrowing the District proposes to adopt, we ask you hold it accountable to the limits and restrictions discussed above.

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1. See Thomas v. Nev. Yellow Cab Corp., 130 Nev. Adv. Op. 52, 327 P.3d 518, 521 (2014).
2. See NRS 318.010.
3. NRS 318.015(1) instructs that “each district organized pursuant to the provisions of this chapter shall be a body corporate and politic…quasi-municipal corporation” and general improvement district. IVGID was created by the Washoe County Board of Commissioners (“County Board”) as a GID on May 31, 1961 via ¶1 of Ordinance No. 97, Bill No. 57.
4. See NRS 318.275(1)(a).
5. See NRS 318.325(1).
6. See NRS 318.325(1)(b).
7. See NRS 318.275(1)(c).
8. See NRS 318.325(1)(c).
9. See NRS 318.275(1)(d).
10. See NRS 318.325(1)(d).
11. See Tucker v. Mayor and Bd. of Alderman, 4 Nev. 20, 26 (1868); State ex rel. Rosenstock v. Swift, 11 Nev. 128 (1876).
12. Like GIDs [see Waltz v. Ormsby County, 1 Nev. 370, 377 (1865)]. Notwithstanding, there is an “absence of (reported cases) involving (the powers of) special districts” 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 also 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)].
13. See NRS 244.137(3).
14. Also go to https://whyy.org/articles/what-is-home-rule/.
15. Go to https://www.nvbar.org/wp-content/uploads/NevLawyer_June_2013_Dillon’s_Rule.pdf. Also see NRS 244.137(4).
16. NRS 318.015(1) instructs that “each district organized pursuant to the provisions of this chapter shall be a body corporate and politic…quasi-municipal corporation” and general improvement district.