What is a Special District?
What is a Special District?
A Special District is an established unit of local government with local and state regulatory oversight. These local governments are formed to finance, construct and operate public infrastructure and provide services such as roads, sewers, trails and parks, that counties and municipalities may be unable to provide due to fiscal limitations.
Special Districts can borrow money at lower interest rates, allowing them to build public infrastructure and homes more efficiently and affordably. Property owners within the boundaries of a Special District pay a higher tax that contributes to paying down the debt over time.
Special Districts are formed by submitting a detailed service plan to the city council, town board of trustees, or county commissioners for review and approval following publicly noticed and conducted hearings. These local authorities have oversight and control over limits on taxation, fees, and services. After the approval of a service plan, an organizational election is held.
Special Districts are operated by an elected Board of Directors. Director elections are held in May of every odd year. Initially, developer representatives may sit on the Board of Directors because the district is formed before there are any homes or homeowners. Over time, residents who are eligible electors can run for board seats, allowing residents to participate in governance of their community.
For additional information about metropolitan districts please visit Metro District Education Coalition.