Special Districts

What is a Special District? A Special District is a quasi-municipal corporation and political subdivision. It is essentially a tax-exempt financing mechanism used to finance the cost of public infrastructure within a discreet development area.

What is the Procedure for Forming a Special District? The first step in formation of a Special District is submittal of a Service Plan to the jurisdiction in which the property is located. A Service Plan is basically like a city charter and sets forth the powers that the Special District as a governmental entity will have (i.e., the power to provide water, sanitation, street and other public improvements). The approving jurisdiction has the authority to require additional limitations in the Service Plan. Upon approval of the Service Plan by the approving jurisdiction, a Petition for Organization is filed with the District Court requesting that the District Court order an election on the issues of formation of the Special District and the incurrence of debt. At a court hearing, the District Court orders the organizational election to be held on the next available election date. The election results are then certified to the Court, which issues an Order and Decree declaring that the Special District has been duly organized. It is at this point that the Special District may function as a quasi-municipal corporation and conduct its business.

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