• 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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