Under Nevada law, the “General fund” is used to account for all financial resources except those required to be accounted for in another fund. At IVGID, the General Fund collects property taxes, consolidated tax (sales and other taxes) and LGTA taxes; these pay for the administrative costs of operating the District. Some of the fund expenses are allocated to recreational venues and utilities  The fund’s total combined revenues for the fiscal year ending June 30, 2024 tentative budget is $6,615,297.

General Fund expenses appears to have gotten out of control.  The Fund’s Tentative Budget for FY2024 increases are well beyond the rate of inflation [GRAPH, right].

Total expenses will have increased from $4,683,698 in 2022 (Exhibit A) to $6,575,117 (Exhibit B) in 2024. This is an increase of $1,891,419 or 40%. The expenses do not include the partial tax refund to property owners in 2022, and the expenses for the Parks in 2024. These increases are staggering.

To make matters worse, a Board decision was made to fund expenses for the Parks from the General Fund. Parks have historically been funded by Facility Fees through the Community Services Fund. Parks expenses have a tentative budget of $1,402,050 for 2024. Parks revenues are only $50,360; the result is a serious depletion in cash and is not sustainable long-term unless the Parks expenses are controlled..

Within a matter of two years, the General Fund , which started with a balance of $6,013,261 in 2022, will end up on June 30, 2024 with only $2,074,351. Since property taxes are controlled by the State, increases in revenues will be marginal. It can be assumed that most of the cash will be depleted in 2025.

IVGID Payroll Costs

The runaway expenses to fund the administration of the District is hard to understand; perhaps it can be best explained by the Board of Trustees delegating their responsibility under NRS 318.180 to the General Manager through Board Resolution 1480. Thus, the General Manager decides on salaries for the administration staff. And proposes pay increases. And creates new positions with higher pay scales, such as three Director positions in 2023 (CLICK to see a larger Organization Chart). These Director positions were not even in the FY2023 budget. See the full IVGID organization chart.

Once the salaries are increased the Board of Trustees can do little. Shouldn’t the Trustees take back their responsibilities? First, the delegation of power by elected Trustees to an appointed official is not good governance.

Second, there is nothing in Nevada law that says the Board’s power of hiring and retaining employees (NRS 318.0105) can be delegated.  Nevada is a Dillon’s Rule state.  A Board Resolution requires an authorizing Nevada Statute – or the resolution is contrary to law and void.

In contrast, NRS 354.240 gives County Commissioners the power of approving claims to certain appointed roles, based on amounts and other limits. Thus the County Commissioners have the power to delegate this specific function because a Nevada statute says so.

The Board of Trustees has less than a month to get these enormous expense increases under control; the FINAL budget is to be approved prior to May 31, 2024.

The author, Cliff Dobler, is a long-time resident and property owner of Incline Village and a registered voter. J. Gumz, a long-time resident, owner, and voter of Incline Village, contributed to this article.