INCLINE VILLAGE, Nev. – The Incline Village General Improvement District has made no effort to control payroll costs, according to the May 2024 Treasurer’s report presented by Trustee Raymond Tulloch during the Wednesday, July 31 board of trustees meeting.

“We’re running well ahead of budget, which is not a good thing in this case,” Tulloch said. 

Total payroll and accounts payable expenses are $4,649,661. 

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Total year to date payroll and accounts payable are $53,902,035. 

Tulloch went over the investments including total market value of investments $36,220,829; total monthly interest and dividends $141,539; and total monthly deposits, withdrawals and change in value $17,964. 

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In the Wells Fargo account, the total monthly interest and dividends is $197,180, Tulloch said. 

Tulloch highlighted the expenditures: 

• Beaches year-to-date total expenditures $2,154,593 
• Golf year-to-date total expenditures $4,545,424 
• Recreation year-to-date total expenditures $2,424,396 
• Ski year-to-date total expenditures $9,427,727 
• In total, it’s $18,552,140 

Trustee Michaela Tonking asked for the board to add a budget line to the budget graph. 

Tulloch urged General Manager Bobby Magee to close the monthly books. 

Also during the meeting, Magee gave an update on the Rubin Brown draft Forensic Due Diligence Accounting Services Review. 

Rubin Brown’s report cited a high risk of fraud within IVGID’s control environment and provided 41 observations and recommendations. Magee said 16 of the observations had been resolved or fixed, and that 18 of the observations were being corrected or worked on. The rest of the items were listed as low priority, and had not been started. 

Director of Administrative Services Susan Herron spoke about budgeting and fiscal management in reference to community services, and beach products and services pricing. 

“We need to have an overarching strategy and philosophy on how we are pricing things in the district. We’re missing that,” Chair Sara Schmitz said. “To identify by venue, by budget where it falls into the pricing pyramid, so that then board can have discussion and it can be used for future budgeting.” 

Schmitz said it will give insight into how much to subsidize, and when and where it’s necessary. 

“I feel we are way down into the weeds, and we haven’t yet come up with an over-arching strategy approach and clarification at a venue level,” Schmitz said. “Where are we today?” 

The board asked staff to return with information on where the district currently is regarding operating and capital subsidy percentages, and that they should be provided at a venue level, food and beverage level, and for programs and services. 

Schmitz said it should answer, “What are we trying to accomplish and for whom?” 

Tulloch spoke about revisions recommended to Policy and Procedure 142 Resolution No. 1898, which delegates hiring responsibility to senior management. The board tabled the item until Aug. 28. It requested the documents show what has been struck through with a red line so the board can see what has changed. 

“This does not change anything about the overall management of staff,” Tulloch said. “That’s still the role of the general manager. This just makes sure the board has input to and insight into the selection of the senior management team.” 

“All of the peripheral changes I agree with,” said Trustee Dave Noble. “…a member of the board of trustees on the interviewing committee, however having the authority to veto a decision by the general manager of hiring somebody, I think just goes too far afield. We have one employee that we manage. If we start going down this road, it’s a slippery slope. And I don’t think it’s appropriate.” 

Tonking wanted IVGID’s version of senior management to be defined. 

“I think it takes away the trust that we have and gets us into the weeds of operations,” Tonking said. 

The board discussed policy 8.1.0 Capitalization of Fixed Assets and provided feedback on the documents for staff to revise. 

“This policy needs to be updated … I certainly understand the comments I’ve heard from staff tonight,” Magee said. 

Tulloch made several recommendations including to stop expensing items that should be budgeted as capital. He also suggested that the district shouldn’t acquire assets unless they have a minimum of 5 years of life and to stop grouping assets in an attempt to get into a capital threshold.

While it may seem that the current way the district is doing things may provide the district a tax benefit, because Incline Village is a public agency its revenues are not subject to taxes. So there is no tax benefit.

“One of my inputs to this was to try and clean it up and put sensible threshold, increase the thresholds,” Tulloch said “…have proper determination that anything that is going in is capitalized and is going to be either extending the asset or increasing the service capacity, which is the standard industry term for it. Also to make sure we have proper accounting for it.” 

Tulloch emphasized tracking capital assets. 

“Things just disappear into black holes … and we haven’t been filling in the paperwork to see where our assets have gone whether they are being disposed of, where the proceeds have gone,” Tulloch said. “…capital assets, particularly if it’s been paid for, not from operating costs but from a board capital subsidy, all these trade-ins, selloffs, etc., should be coming back in to the overall general fund not to the department specific necessarily … a lot of the effort here is to put some proper parameters around that.” 

Tonking agreed with Tulloch regarding tracking assets, and knowing about improvements, maintenance and expenses. 

“I think we need to look at what is recommended for years and thresholds, and what guidance says, and go from there,” Tonking said. “And make sure we’re not going excessively above or not hitting the right ages.” 

Schmitz urged looking at previous policy. 

“There’s some past history I think would be good for staff to dust off and review,” Schmitz said. 

Legal counsel Sergio Rudin gave an overview of the recommended revisions to the District Policy and Procedure 138 Resolution No. 1849. Following the board’s discussion, this item was placed on the long-range calendar for the Aug. 28 meeting.

Along with some of the items tabled during the meeting, a couple items needed to be deferred because key district executives with items on the calendar were absent. 

The items deferred to the Aug. 28’s meeting are: 

Consent calendar item F5 that was requested by Assistant Director of Finance Adam Cripps who is on a leave of absence. 

It seeks procurement approval of water and wastewater treatment chemicals from Univar for up to $120,000 and from Olin for up to $170,000. 

It also asks for procurement approval of fuel through state contract pricing with Pilot Thomas Logistics, LLC, for up to $190,000 and with Flyers Energy, LLC, for up to $190,000. 

General Business item G6 was requested by newly hired General Manager of Golf Operations Tim Sands. 

It seeks to review, discuss and possibly approve the Golf Club Policy.