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Meramec Funding Sources

Neighborhood Improvement District

Neighborhood Improvement District

Aug. 1, 2019
By WSU EFC

Story summary:

  • A Neighborhood Improvement District is a special taxing district whose property owners voluntarily tax themselves to fund public improvements or services to support the community. 

Quick Facts

Eligible Improvements
Stormwater projects, Engineering, Gutters, Maintenance during bond term, Parks, Property acquisition, Sidewalks, Signage, and more.

Benefits of a Neighborhood Improvement District
Proceeds collected can be used for a broad range of public purposes – including stormwater infrastructure

Focus costs only on those benefiting from the services

Allows local residents to obtain expanded services they want at a price they are willing to pay 

Drawbacks of a Neighborhood Improvement District
Adds another layer of taxes and taxing districts

May deter new residents

Can seem redundant to business and property owners

About

 A Neighborhood Improvement District (NID) is a community improvement district that can finance public improvements that benefit the properties within the district. Financing can occur in the form of bonds (max term 20-years) or special assessments.

The NID revenue can help pay for public infrastructure, facilities or other improvements that benefit the property within the district, even if the improvement is located outside of the district.

Authorization of NIDs is provided via Article II, Section 38(c) of the Missouri Constitution Sections 67.453-67.475. An NID is not a separate political subdivision.

NIDs are established through a cooperative agreement between the local municipality and residents within the proposed district. There are two methods for establishment:

  1. A City Council resolution calling for a vote, which requires 4/7 majority of district voters.
  2. A petition submitted to the City Council signed by 2/3 of the property owners by area of all real property within the proposed district.

After the NID is established, the City Council orders the improvements to be constructed, and assess the property owners within the district the cost of the project when construction is complete.

Consult your municipal attorney prior to moving forward with NID opportunities.

More Info/Resources

Consult your community’s attorney and financial advisors prior to moving forward with any of these funding options. Any reference in this website to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this website to the website of another party, do not constitute or imply the endorsement, recommendation, or favoring of companies or organizations.
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