What is a Public Improvement District (PID)?
A public improvement district (PID) is a taxing entity which can finance, construct and maintain public improvements or provide a public service. A PID may be formed to address any type of public improvement or service that a county has the authority to provide. It has the ability to issue debt and to impose a mill levy against real and personal property within the district, with voter approval. The predominant use of PIDs in El Paso County is for improvements to and maintenance of subdivision roads.
How does a Public Improvement District work?
A PID begins with a plan. The plan identifies the proposed improvements, the cost of construction and the cost of maintenance. It also describes the boundaries of the PID and estimates the mill levy needed to raise sufficient revenue to fund the desired improvements. The plan serves as a basis for a petition to the Board of County Commissioners requesting that the district be formed. If the Board approves creating a PID, an election is held asking voters within the boundaries of the proposed PID to approve the formation and the proposed mill levy. Once the PID is created, the Board of County Commissioners acts as the Board of Directors of the PID.
What are some benefits of a Public Improvement District?
- Property values benefit where districts are formed for the purpose of maintaining roads.
- Mortgage financing companies sometimes require public maintenance of roads as a condition of making a loan.
- Public road maintenance allows owners to stay ahead of maintenance needs. A planned program of road maintenance includes preventive maintenance. Sealing cracks and resurfacing streets before deterioration occurs saves money over the life cycle of the pavement.
- Each district has an advisory committee of volunteers, typically made up of 3-5 property owners, who work with the County staff to establish priorities for work that needs to be done.