1. Except as otherwise may be provided in an interlocal agreement entered into pursuant to NRS 318A.160, after adopting an ordinance creating a district, the governing body must establish:

(a) Accounting practices and procedures for the district;

(b) Auditing practices and procedures to be used by the district;

(c) A budget for the district; and

(d) Management standards for the district.

2. After the duties required by subsection 1 have been performed, the first board of trustees of the district, consisting of five members, must be appointed. Except as otherwise provided in this subsection, each governing body of a county or city with territory included within the district that has entered into an interlocal agreement pursuant to NRS 318A.160 must each appoint one member to the first board of trustees. If:

(a) More than five counties or cities have territory within the district, the interlocal agreement entered into pursuant to NRS 318A.160 must determine which governing bodies may appoint the five members of the first board of trustees of the district.

(b) Less than five counties or cities have territory within the district, the governing body of each county or city must appoint one member and the remaining members of the first board of trustees must be appointed as determined pursuant to the terms of the interlocal agreement entered into pursuant to NRS 318A.160.

3. The members of the first board of trustees must be qualified electors of the district. The trustees must determine by lot which three trustees serve 4-year terms and which two trustees serve 2-year terms.

4. The governing body may remove any member of the first board of trustees for cause shown unless an interlocal agreement entered into pursuant to NRS 318A.160 otherwise prohibits such removal.

5. All members of the board of trustees must file with the clerk their oaths of office and corporate surety bonds, at the expense of the district, the bonds to be in an amount not more than $10,000 each, the form and exact amount thereof to be approved and determined, respectively, by the governing body, conditioned for the faithful performance of their duties as trustees. The governing body may from time to time, upon good cause shown, increase or decrease the amount of the bond.

(Added to NRS by 2017, 2702)