Wrathell, Hunt and Associates, LLC
Phone: (561) 571-0010
Fax: (561) 571-0013
Toll-free: (877) 276-0889
Advantages to Local Government
• Provides local government with a single public entity responsible in perpetuity for the capital, operations, and maintenance of infrastructure in the community.
• High quality of development associated with planned communities located in the Districts provides additional tax base to the local government.
• Prevents needless proliferation, duplication, and fragmentation of local general purpose governments.
• Provides a timely, efficient, effective, responsive, and economic way to deliver basic community infrastructure and services.
• “Growth pays for Growth” – additional infrastructure required by new growth is paid for entirely by the new growth and not the local government and its existing residents.
• The indebtedness of Districts do not constitute a liability of the local government.
Financial Advantages to the Developer
• The Developer does not have to use its own or borrowed funds to build infrastructure.
• Debt Structures offer the flexibility of using both long-term and/or short-term financing
• Municipal Bonds provide tax-exempt, low-cost financing
• District Bonds are easily marketable to the investor community.
• Infrastructure costs are paid for by new growth within the District.
Non-Financial Advantages to the Developer
• Districts relieves the Developer from most aspects of landowner relations.
• Provide for the long-term operation & maintenance functions in perpetuity.
• Allow for flexibility in project staging.
• “Growth pays for Growth” – additional infrastructure required by new growth is paid for entirely by the new growth and not the developer.
Advantages to the Residents
• Districts are governmental agencies with all the benefits of public corporations.
• Ensure accountability of public resources - Districts are held to the high standards as all other local governments.
• Operate not-for-profit - Districts provide services to landowners/residents at their own cost.
• Save money since Districts do not pay sales tax on goods and services.
• Accountable to residents - Districts are accountable to landowners/residents as the Boards of Supervisors/Directors are appointed by the local government of jurisdiction to represent the interest of the community and operate in the open.
• Protect residents from failure by the Developer - Districts provide infrastructure and community services even if the Developer fails.
• Protect residents who pay from those that do not - with foreclosure powers for non payment of assessments, residents/landowners who do not pay do not negatively impact those who do.
• Ensure that residents only pay for the amount of benefit they receive for as long as they receive it - residents/landowners pay only for the infrastructure and services that they receive within Districts.
• Provide for the operation & maintenance functions on an indefinite basis - Districts operate as long as there is a need for the services and residents/landowners are willing to provide funding.
• Provide for an orderly transition after the primary Developer leaves.
• Districts construct, operate and maintain community infrastructure; there are no problems with transition after the Developer leaves.
• Offer amenities and benefits not usually found in typical developments - Districts can afford to provide amenities and services that would be prohibitive for a developer of a conventional community.
• Provide a cost-effective mechanism to provide community and subdivision-level infrastructure - low-cost financing and the ability to finance it over long term provide for affordable and high-quality improvements on a district-wide level as well as village level.
• Long-term District financing matches the useful life of the infrastructure assets by utilizing twenty and thirty year financing - the District can spread the cost of improvements over a longer period than that provided with conventional financing, minimizing annual landowner/resident payments.
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