Public Improvement Financing

Types of Special Districts

There are three types of special districts:

Bonded Districts: These districts sell bonds to finance a variety of public improvements, which primarily include the construction of streets, drainage, water & sewer facilities, streetlights and the acquisition of the land necessary to construct these improvements. Bonds are sold and property owners re-pay through annual assessments over time.
Annual Service Districts: Annual districts provide funds for maintenance and operations of public landscaping along major roadways and open spaces, streetlights, parks, etc. They also provide funding for specialized services for libraries, transportation management, and Business Improvement Districts. The lighting and landscape maintenance districts are enhancements to services provided by the citywide lighting and landscape district. The annual assessment amounts may vary year to year depending on the actual budget requirements.
Fee Districts: Fee districts, better known as developer impact fees, collect fees at time of development in specified geographic development areas for the purpose of constructing or reimbursing developers for constructing public improvements such as streets, storm drains, water and sewer facilities, streetlights, etc.