Improvement districts can be created to finance infrastructure improvements for the benefit of properties within the district, such as:
- Road rehabilitation, and/or
- The Board of County Commissioners serves as the board of directors for the district.
Anyone within a potential district can initiate discussions with the county to see what is involved in completing work on roads within the district. The roads can be either public or private.
- Private roads would need to be brought up to county standard (at the expense of the property owners within the district) as part of the work to be done, and conveyed to the county (public road) before the county would take on maintenance responsibility.
Formation of a District
The Grand County Board of County Commissioners (BOCC) will want to insure that those properties within the potential district will:
- Benefit from the improvements, and
- Improvements are supported by the owners of those properties.
Beginning in the spring, property owners would work with the Community Development Department to:
- Identify the preliminary boundaries of the district.
- Circulate a petition among the property owners.
- Identify the final boundaries of the district with the Community Department once the petition is signed by a majority of property owners.
Once the district is finalized, the Board of County Commissioners will hold a public hearing to decide whether to proceed with the creation of the district and perhaps place the matter on the ballot.
Cost of the work
The Community Development Department will evaluate the work to be completed as part of discussions with the district representatives. At least one public meeting will be held with the district property owners to:
- Explain the need,
- Describe the project,
- Provide an initial expected cost, and
- Discuss potential funding necessary to implement the improvements.
At that point, a general consensus would be reached as to the direction and payment method to be used.
Transportation Improvements can be funded by:
- HOA Dues,
- Voluntary payments, or
- Other funding sources.
Local Improvement District (LID)
A LID can be used to finance one-time capital improvements. It does not finance future improvements or ongoing work. The method of funding is usually assessments (per lot or per front- footage), either to be paid until the needed amount is collected and then work is completed, or to pay off bonds sold to begin work immediately (see “Bonding Improvements” below). Once the payments are completed and the work is finished, the district dissolves and a new district must be formed if more work is to be performed.
Detailed information regarding the formation of a LID to include timelines and sample correspondence is included in the following link: http://co.grand.co.us/DocumentCenter/View/9947
Public Improvement District (PID)
A PID can be used to:
- Finance one-time capital improvements, and future and on-going work.
The method of funding is usually a property-value-based (mill levy) tax that can be adjusted in the future based on actual need for funding. The tax and/or bonding issue is voted on by electors in the district at a regular election in the fall. Once the work is paid for, the district can be dissolved at the request of the district members in the future.
Detailed information regarding the formation of a PID to include timelines and sample correspondence is included in the following link: http://co.grand.co.us/DocumentCenter/View/9948
Regardless of which type of District is used, the cost of the improvements can be paid for by issuing bonds sold to investors and can be paid from:
- Revenues generated by assessments (LID), or
- Taxes (PID)
Bonding is typically used to hold current prices and complete the work as quick as possible fore the road condition deteriorates beyond its usefulness; however, the total cost of the bonding package adds administrative costs and interest, potentially adding up to 40% to the cost of the work.