The Neighborhood Improvement District (NID) is a method by which neighborhoods can use the County's borrowing ability to make neighborhood improvements.
It works by 2/3 of the property owners of a defined geographic area voting for, or petitioning the County Commission to form a NID for the purpose of making physical improvements within the District. The property owners must employ a design professional to design the improvements and to come up with an accurate cost estimate.
If the County Commission supports the application, a NID will be formed. After the NID is formed, the County contracts with a company to perform the improvements.
When the work is complete, the County sells its bonds to pay for the project. The property owners agree to pay the county a prorated share of the cost.
For instance, if there is a 100 lot subdivision that desires to do $1,000,000 of sewer improvements, at least 67 property owners would have to petition the County to form a NID. The County would do the legal work to set up the NID and sell bonds. If $1,000,000 in 20 year bonds is sold at 3% interest, the annual debt service would be $51,323.
Each home would make an annual payment to the County of $513.00. This amount would be added to the annual tax bill for each property in the District. This would include those that did not sign the petition or vote for the NID. Failure to pay would result in a lien being placed on the property, just like failure to pay a tax bill.
This example was sent by email from Martin Toma to Janet Hirsch