Washoe’s Board of County Commissioners on Tuesday voted to settle with the school district in a case that’s been in the courts for nearly two years and put the school district on the hook for $19 million owed to Incline Village property owners.
Washoe County’s school trustees also on Tuesday approved, without discussion, the settlement. The school district’s attempt to avoid paying a property tax settlement with Incline has finally reached a conclusion: a settlement of $3.8 million
That’s down from $19.5 million before the school district appealed its case last year to the Nevada Supreme Court.
The WCSD will only have to pay back the improperly collected property tax distributions it received, not the interest that has accrued on those funds over the past 20 years as the case has been disputed in court.
The dispute stems from a county error where Incline Village residents were overcharged property taxes. Those tax dollars were distributed by the county to Incline Village General Improvement District, North Lake Tahoe Fire Protection District, the State of Nevada and the school district.
The residents sued in 2003 for what they called “unconstitutional property tax assessments” and prevailed, winning a $56 million settlement, which includes the original tax dollars plus interest.
WCSD officials were handed a $19.5 million settlement bill, but refused to pay that amount because, the district’s attorney alleged, they weren’t involved in the settlement with the homeowners and said they were refused access to the proceedings.
Commissioner Mike Clark asked why the county was settling with the school district before the case was heard in court. Deputy District Attorney Herbert Kaplan said the settlement was a risk management decision.
“In this litigation, the risk involved is that the county could potentially be responsible for all $56 million or 100% of whatever payout there is,” Kaplan said. “This compromise is to provide certainty and finality, and some element of risk aversion.”
“Is this going to be the end of this? Should we have a party?” asked Clark.
“Thank you to you, Commissioner Clark, because I know you have been working on this for a large part of your career [as assessor] on this,” Commissioner Alexis Hill said. “This is a great solution, and hopefully the school board will approve it and we can move on and continue to work together as a region. This is very exciting for me.”
Needs assessment completed for opioid response in community
Amber Howell with Washoe County’s Human Services Agency provided an update Tuesday to commissioners on a needs assessment recently conducted as a requirement to receive opioid settlement funds from the state.
By state law, each county must conduct a needs assessment to determine how funds would be spent in order to receive a share of the state’s opioid settlement program.
Howell began her presentation with some background information on the opioid crisis in Washoe County, which in 2021 surpassed methamphetamine as the leading cause of drug-related deaths.
The majority of opioid deaths occurred among people ages 25-45, in a home setting, and often with a bystander present. Only a third of those instances had naloxone administered, Howell said.
The crisis is affecting children as well, Howell said. Substance use by parents resulted in more than 53% of the child removals from the home.
Howell said Washoe County does have some strengths when it comes to fighting opioid addiction. She cited, among other things, a compassionate recovery community, increased prevention and education including among law enforcement, an increase in telehealth and changes to the justice system that focus on recovery rather than punishment.
Gaps still exist, however. Specialized programs to screen children who may be more apt to abuse substances in the future, parent education, and treatment data are all lacking in the community, she said.
Howell said the community’s only detox center closed in February.
Recommended priorities from the 102-page report include ensuring funding for opioid use disorder (OUD) services for uninsured and underinsured residents, increasing overdose prevention outreach and education, better support families impacted by substance use, encouraging doctors to use approved OUD medications, and increasing the number of beds available for detox and short-term rehabilitation.
Howell said $1.8 million has already been received from the Johnson & Johnson settlement agreement, but more settlements are still being approved. That funding would be used to support activities developed following any of the priorities identified in the plan.
Commissioners said they were in support of priorities identified in the report. The next steps will be for Howell and her team to develop a plan for the county based on those priorities.
