1. Except as otherwise provided in subsection 2, surplus amounts remaining in the special fund created for that district pursuant to NRS 271.490 after the final accounting described in NRS 271.497 is completed must be refunded as follows:
(a) If amounts have been advanced from the general fund of the municipality as required by NRS 271.495 for the payment of any bonds or interest thereon of such district, those amounts must first be returned to the general fund of the municipality.
(b) If a surplus and deficiency fund has been established pursuant to NRS 271.428, and amounts have been advanced from the surplus and deficiency fund for the payment of bonds or interest thereon of such district, those amounts must be returned to the surplus and deficiency fund.
(c) The treasurer shall thereupon determine the amount remaining in the fund created for the district pursuant to NRS 271.490 and deduct therefrom the amount of administrative costs of returning that surplus and any other administrative costs incurred by the municipality related to the improvement district or the project which have not been otherwise reimbursed. An amount equal to the actual administrative costs must be returned to the fund from which the administrative costs were paid.
(d) If the remaining surplus is $50,000 or less, that amount must be deposited to the surplus and deficiency fund.
(e) If the remaining surplus is more than $50,000, the treasurer shall:
(1) Deposit $50,000 in the surplus and deficiency fund;
(2) Apportion the amount of the surplus in excess of $50,000 derived from:
(I) The proceeds of the bonds, payments of assessments during the 30-day period for payment described in NRS 271.405 and any other money initially designated to be used to pay the costs of the project among all the tracts of land assessed in the district; and
(II) All other sources other than penalties, collection costs and interest on a delinquency imposed pursuant to subsection 4 of NRS 271.415 or 271.585 in connection with the collection of an assessment or an installment payment that is not paid when it comes due, among the tracts of land assessed in the district whose assessments were not paid in full during the 30-day period for payment described in NRS 271.405; and
(3) Report all apportionments to the governing body for approval by the governing body.
(f) Upon the approval of each apportionment by the governing body and not later than 30 days after the final accounting described in NRS 271.497 is completed, the treasurer shall thereupon give notice by mail and by publication of the availability of the surplus for refund.
(g) The notice must also state that the owner or owners of record on the date specified by the notice of each tract of land which was assessed may request the refund of the surplus apportioned to that tract by filing a claim therefor with the treasurer not later than 120 days after the date of the mailing of the notice. Thereafter claims for such refunds are perpetually barred.
(h) Not less than 60 days and not more than 90 days after the date of the mailing of the first notice required pursuant to paragraph (g), the treasurer shall mail a second notice to each owner of record that has not filed a claim for refund. The second notice may be printed on a postcard and may refer to the first notice for any information that the treasurer omits from the second notice.
(i) All valid claims for a refund must be paid:
(1) If the treasurer determines that there are 250 or more tracts for which an owner of record has requested a refund, not later than 90 days after the deadline for an owner of record to file a claim for a refund as described in paragraph (g).
(2) If the treasurer determines that there are less than 250 tracts for which an owner of record has requested a refund, not later than 30 days after the deadline for an owner of record to file a claim for a refund as described in paragraph (g).
(j) Surplus amounts, if any, remaining after the payment of all valid claims filed with the treasurer must be transferred to the surplus and deficiency fund.
(k) Valid claims for refund filed in excess of the surplus available for each separate tract may be apportioned ratably among the claimants by the treasurer.
2. Subsection 1 does not apply to change or alter the distribution of any surplus pursuant to a written agreement that was entered into by a district on or before June 18, 1993.
3. All determinations of the chief financial officer or treasurer under this section and the apportionment of the surplus approved by the governing body as provided in this section shall be conclusive, absent fraud.
(Added to NRS by 1981, 956; A 1993, 529; 2005, 1830; 2015, 155; 2019, 1299)