Nevada bill would let certain improvement districts raise trustee pay cap from $9,000 to $14,500

Assembly members heard testimony on March 3 on Assembly Bill 301, a bill that would allow certain general improvement districts (GIDs) that provide water, sewer or trash services to raise the statutory cap on board member compensation from $9,000 to as much as $14,500.

The measure, presented by Assemblymember Heather Goulding, is limited to GIDs governed by independent elected boards and would not automatically increase pay; it would only enable a board to approve a higher cap subject to existing statutory safeguards and local budget rules.

Supporters told the committee the change updates a cap that was set in 2005 and has lost purchasing power. "The bill authorizes certain GID boards to raise the cap that's currently in statute from $9,000 to up to $14,500," said Matt Morris, an attorney representing the Sun Valley General Improvement District. Morris said the $14,500 figure is slightly below the Bureau of Labor Statistics inflation adjustment for $9,000 in 2005 and that the bill is enabling legislation, not a guaranteed pay increase.

The bill sponsor, Assemblymember Heather Goulding, said AB301 addresses a constituent need in Sun Valley, where trustees provide multiple services. "This is a straightforward bill that addresses a need in the community," Goulding said, adding she has worked with GID representatives to develop the measure.

Susan Sievert, chairwoman of the Sun Valley General Improvement District, described trustees as the "face of government" for their residents and said the role requires substantial time and community engagement. She told the committee Sun Valley GID provides water, sewer, garbage collection and recreational services to more than 6,000 service connections and roughly 20,000 residents.

Public supporters echoed that trustees invest significant time and that modest compensation could broaden the pool of candidates. Brenda Costello, a family resource center specialist with the Washoe County School District, said trustees often work "tirelessly," attend community events and review technical documents without compensation. Michael Reffy, a Sun Valley resident of 54 years, said the district keeps rates low and that trustees deserve stronger recruitment incentives.

One caller, Aaron Katz, who identified himself as an Incline Village resident, opposed the statewide change. Katz said the bill is tailored to Sun Valley but would apply statewide and predicted that trustee pay increases would ultimately be paid by customers through higher rates. "If there's an increase in compensation, your rates will increase to cover those," Katz told the committee.

Committee members asked how the change would reach voters and whether trustees could receive pay increases without standing for election. Assemblymember Flanagan asked why the bill does not require a direct ballot measure; Morris responded that statutory safeguards already require any board-approved change to take effect only on Jan. 1 after the next general election, allowing voters to weigh in. Assemblymember Bridal asked whether staggered terms could produce trustees who receive an increase without an intervening election; Morris confirmed that could occur under current law.

Bill details and safeguards

Matt Morris told the committee AB301 amends two statutory sections. Section 1 would permit applicable GID boards to adjust the compensation cap from $9,000 to up to $14,500, subject to limitations already in NRS chapter 318. Those statutory safeguards—described at the hearing—include these conditions: any approved change takes effect on Jan. 1 of the calendar year after the next general election, budget adequacy is required, salary parity among board members is required, and additional compensation of any kind for board service is prohibited. Section 2 is a conforming change to clarify the application of the Local Government Budgeting Act (NRS 354) in this context.

Morris said roughly 75 GIDs exist in Nevada, and about 40 provide water, trash or sewer services; about 25 of those are governed by independent elected boards (the subset affected by AB301). He said the bill was narrowed to apply only to GIDs with independent elected boards because county commissions that serve as GID boards are governed under a separate statute.

Opposition and fiscal concerns

Opponents questioned the statewide scope and fiscal effects. Aaron Katz said the bill benefits a small number of trustees while exposing districts statewide to potential rate pressure. Committee members also probed what would prevent a board from raising rates to fund pay increases; witnesses pointed to the district budget process, statutory limits and voter oversight as constraints.

No vote recorded

The committee heard support, opposition and neutral testimony and did not record any committee vote on AB301 during the hearing. The hearing record includes an announced friendly amendment to clarify language that initially tied adjustments to service connections; the revised language removes that connection, Morris said.

Why it matters

GIDs provide localized utility and infrastructure services across Nevada and are governed under NRS chapter 318. The bill would not compel any district to increase trustee pay; rather, it would let qualifying GID boards make that choice within existing statutory and budgetary constraints. Proponents say the change updates a 2005 cap and may help attract candidates; opponents say it risks higher utility rates and unintended statewide impacts.

What comes next

The sponsor said she expects to return for a work session. The committee did not take a final vote at the hearing.