IVGID Summer News – Punch Card Updates and Statement from GM Winquest Regarding Beach Facility Fee
June 5, 2023 | Member Submitted
Provided by IVGID at www.yourtahoeplace.com
June 1, 2023 marks the beginning of IVGID Recreation Punch Card renewal season. Generally, Punch Cards can be renewed online via the Recreation Punch Card renewal portal, or by stopping by the Rec. Counter inside the Incline Village Recreation Center (click here for Rec. Center hours). There are multiple changes to the way Recreation Punch Cards work and the value associated with them due to recent updates made by the IVGID Board of Trustees at the May 25, 2023, Board of Trustees Meeting. We have attempted to provide answers to many of the frequently asked questions about Punch Cards below and on the IVGID Passes & Punch Cards webpage. But if you still have questions, please call the Rec. Counter staff at 775-832-1310. (Click here for Rec. Counter hours of operation.)
What is the value for Recreation Punch Cards renewed on or after June 1, 2023?
For parcels with beach access, punch cards will have values set at $91.00 (which is 1/5 of the $455 Beach Facility Fee for the 2023/2024 fiscal year).
Why did the value of Punch Cards go down compared to last year?
The value of Punch Cards has traditionally been set as 1/5 of the Total Combined Fee of the combination of the Recreation Facility Fee and Beach Facility Fee. The Recreation Facility Fee is the annual Recreation Standby and Service Charge assessed to parcels within Incline Village and Crystal Bay to support recreation services, programs, and facilities. The Beach Facility Fee is the annual charge assessed to parcels with Beach Access to support operations, capital improvements, and debt service for the IVGID beaches. Both of these fees are paid as part of Washoe County property taxes.
For Reference: During the 2022/2023 fiscal year, the Recreation Facility Fee was $450 and the Beach Facility Fee was $330, for a Total Combined Fee of $780 per parcel with beach access. Thus the value of a Punch Card was set at 1/5 of this total – $156. (For parcels without beach access, punch cards had a value of $90 – 1/5 of the $450 Recreation Facility Fee.)
For the 2023/2024 fiscal year, the IVGID Board of Trustees voted to set the Recreation Facility Fee at $0 and the Beach Facility Fee at $455, for a Total Combined Fee of $455 per parcel with beach access (or $0 per parcel without). Thus the value of a Punch Card was set at 1/5 of this total – $91. (For parcels without beach access, Punch Cards would have $0 value.)
For full details on why the fee has changed, please click here to read the “Statement from GM Winquest Regarding the Recreation/Beach Facility Fee.”
STATEMENT FROM GM WINQUEST REGARDING THE RECREATION/BEACH FACILITY FEE
I would like to provide some clarity to address some confusion around how the District was able to reduce the Recreation/Beach Facility Fee from $780 (combined) to $455 (Beach Facility Fee only) for this coming year which results in a deduction of $325 for parcels that have beach access. The quick answer would be projected net profit from Diamond Peak Ski Resort, budget reductions, and drawing down of available Fund Balance (reserves).
Fund Balance (reserves) explained:
The district maintains reserve policies for its various fund types, Utility, Community Services, General, and Beach. See link to policy 7.1.0
Each fund type has a required Fund Balance (reserves) by policy. Over the past several years, the district has accumulated considerable Fund Balance as much as 500% more than what is required by policy for reserves. There are several factors that contribute to these increases including assessing Facility Fees in anticipation of future planned capital projects, net profits from Diamond Peak Ski Resort, and savings and reduction in operating and capital budgets to name a few. This along with the retirement of debt from bonding several years ago, has resulted in an inadvertent over‐collection of Recreation Facility Fees. It’s important that the District be sensitive to assessing the Recreation/Beach Facility Fee at a level that is sustainable but does not continuously contribute to increases in fund balance above what is required by policy unless otherwise directed by the Board of Trustees.
What is included in the Community Services Fund:
The Board took action to allocate $1.8 million in net profits from Diamond Peak, along with a minimal amount of available Fund Balance in the Community Services fund which means the fund does not need or require support from the Recreation Facility Fee. The Community Services Fund includes, Diamond Peak, Recreation (Recreation Center/Community Programming/Recreation Administration), Golf Courses, Facilities/Events, Food & Beverage and Tennis. Please note that parks was moved from the Community Services Fund to the General Fund.
What is included in the Beach Facility Fee:
The Beach Facility Fee will be $455 which includes and will contribute $3.5 million to Beach operations and capital outlay. The Beach Fund is also supported $1.3 million in Charges for Services as well as $ 1.73 million of available fund balance (reserves). Parcels without beach access do not pay the Beach Facility Fee, so therefore these parcels will not pay any facility fees this year.
What does this mean for Recreation Punch Cards?
Parcels that do not pay the Beach Facility Fee will not have access to Recreation Punch Cards while the parcels that pay the Beach Facility Fee have access to Recreation Punch Cards with a value of $91 per card which is 1/5th of the Beach Facility Fee of $455. Up to three additional punch cards can be purchased and also have a value of $91.
Has this happened in prior years to this level?
No, it has not, however the Board of Trustees made the prudent decision based on current financial circumstances as this allows parcel owners to utilize the reduction/savings in this year’s fees to spend how they choose. The fees are evaluated each year based on the operational financial needs of the District, planned capital improvement projects and the potential for bonding of the large projects.
It’s also important to note that the Recreation/Beach Facility Fee is not a component of your Washoe County property taxes, it’s a fee assessed by IVGID that is collected by Washoe County on behalf of IVGID on the annual property tax bill.
Indra Winquest – District General Manager