Finance Department > Local Improvement District (LID)
LID’s are a local approach of neighbors working together with government to improve the appearance of and services in their neighborhood.
Here are some of the improvements that might qualify:
- Street or alley paving
- Sidewalk construction
- Storm water repair
- Water or sewer system installation
- Street light installation
- Playground or park construction
What is an LID?
Why form an improvement district?
How long does it take?
Is there any limit on the size of an LID?
An LID is initiated by obtaining a Proposal For Formation of an LID from the City Clerk. The proposal will describe the proposed improvements and what easements may be required.
After review and approval of the proposal, a petition is circulated. The petition must be signed by property owners of at least 51% of the total area within the boundaries of the district outlined in the petition. It is important to inform all of the neighbors, even those who may be opposed to the project.
After discussing the proposal with neighbors and obtaining as many signatures as possible, return the petition to the City Clerk. Once the signatures are confirmed and property ownership is validated, the Engineering Division will have the plans prepared to determine each property owner’s estimated share of the total costs for the assessment roll.
Will there be public hearings?
The public hearing is a required step in the process to determine if the project is to be built. Property owners are encouraged to attend the public hearing to express their views. The City Council will decide if the project is to be built based on the verbal testimony and on letters received from the property owners.
When does construction begin?
How are the final costs determined?
Notice of the public hearing is mailed to all property owners within the district at least 15 days before the set hearing date. Notice is also published in the official City newspaper at least 15 days before the hearing date.
Anyone who would like to object to the final assessment roll may do so by filing a written protest with the City Clerk on or before the set public hearing date.
The City Council will review all protest(s) and, if necessary, will correct any errors and may revise the assessment roll by increasing, decreasing, or amending the proposed assessments.
How is payment made?
The LID process from start to finish
2. City staff, working with the City Attorney, prepare a Resolution of Intent to create the LID and recommend adoption by the City Council.
3. Council reviews staff recommendations and the Resolution at a Council meeting. If approved, a LID formation hearing date is set and staff is directed to proceed.
4. Public hearing 30-day protest period Council holds public hearing on LID. Depending on the outcome, a Council majority may approve an ordinance to create the LID. A 30-day protest period commences.
5. If property owners representing at least 60% of the assessed value in the LID file written objections within the protest period, the LID cannot go forward.
6. Time limit on appeals challenging the formation of the LID ends 30 days after the expiration of the protest period. Once the appeal time limit ends, no more challenges may be brought against the City or Council to proceed with the LID.
7. When legal appeal period ends, Council authorizes the final design work, project goes to bid, contract is awarded and construction begins. This process can take 6 months, depending on the scope of the project.
8. Upon project completion and final acceptance by the City Council, the City tabulates the final total project cost and calculates the final assessment.
9. After official notice is placed in the City’s Newspaper, property owners in the LID area are notified by mail. The City Council proceeds with a public hearing concerning the final assessment, then approves an assessment ordinance, followed by a 10-day appeal period.
10. Final assessment mailed Final assessments are mailed to property owners and published in the City’s official newspaper. LID property owners have 30 days to pre-pay their assessment.
11. Bonds are sold to cover project costs minus any pre-payments. Bonds are repaid through LID assessments collected by the City each year.