Metropolitan Districts: What They Are And Their Importance
You have probably heard the term metro districts used by real estate agents multiple times. Metro districts are local government units that fund infrastructure and bring developmental services closer to the people. The districts are created after the city council or county commissioners approve service plans. Metro districts finance commercial, residential or mixed-use developments and later tax or assess fees for the services provided without burdening the taxpayers.
Why Are There Metropolitan Districts?
Metro districts exist to help developers access tax-exempt rates while financing public amenities and access funding for an extended period. Developers also use the sections to lower costs and increase amenities in their subdivisions. Additionally, they help communities access new developments such as streets, water, and sewers.
1. What Services do Metropolitan Districts Offer?
Metro districts ensure locals have access to all services and amenities they need to grow and thrive. The services offered are determined by the market demand within a particular city or county. The developers then work with the city or county to determine what infrastructure they will fund and what the developers will fund themselves. Examples of the services include storm improvements, sanitation, and sewers. They also set up recreational playgrounds for children and offer fire protection services, public transportation, street decoration, and traffic control.
2. What Do Metropolitan Districts Do For the Community?
Metro districts fund all public projects that fall within their jurisdiction. Construction of amenities such as playgrounds and roads improves the quality of life and makes it enjoyable to live in the community. The infrastructure also attracts businesses and families into the community, resulting in growth.
Metropolitan districts partner with property owners in selling obligations, secure bonds brought by public taxes, and use the money for general development. The projects end up costing less than when funded by private investors. As a result, the community lives a good life without much debt.
3. Who Governs Metropolitan Districts?
The districts are governed by an elected board of directors, usually members of the development team, and replaced by new residents over the years. The directors meet annually to discuss and adopt a new budget that ensures all development projects get the required resources. The board of directors also hires contractors in charge of all constructions in their jurisdiction and is guided by service plans and intergovernmental agreements (IGAs)
Bottom Line
Metro districts are a good way of funding local projects without burdening the community with significant taxes. The districts construct and central public infrastructure, levy and collect property taxes, and acquire and dispose of real and personal property as required by functions and operations of the special districts. If you want to learn more about your metro districts, consider contacting your local government.
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