Alabama Improvement Districts (IDs)
An ID is a governmental unit created to
serve the long-term specific needs of its
community. Created pursuant to chapter 99A
of the Alabama Statutes, an ID’s main powers
are to plan, finance, construct, operate and
maintain community-wide infrastructure and
services specifically for the benefit of its
residents.
What will the ID Do?
Through an ID, the community can offer its
residents a broad range of community-related
services and infrastructure to help ensure
the highest quality of life possible.
ID responsibilities within our community may
include storm water management, potable and
irrigation water supply, sewer and
wastewater management, and street lights.
How ID’s Operate?
An ID is governed by its Board of
Supervisors which is appointed by the
appointing local government that created the
ID.
The ID’s business is conducted in the
“Sunshine,” which means all meetings and
records are open to the public. Public
hearings are held on ID assessments, and the
ID’s budget is subject to annual independent
audit.
Relationship with Home Owner’s Associations
The ID complements the responsibilities of
community home owner’s associations (HOAs).
Many of the maintenance functions handled by
these associations in other communities may
be handled by the ID. However, the
associations have other responsibilities
such as operating amenities and ensuring
that deed restrictions and other quality
standards are enforced. The ID may contract
with the Master Home Owners Association to
perform maintenance functions.
Benefits to Residents
Residents within a community with an ID may
expect to receive three major classes of
benefits. First, the ID provides landowners
consistently high levels of public
facilities and services managed and financed
through self-imposed fees and assessments.
Second, the ID ensures that these community
development facilities and services will be
completed concurrently with other parts of
the development. Third, there is
accountability because the local appointing
government chooses the Board of Supervisors,
which is able to determine the type, quality
and expense of ID facilities and services.
Other savings are realized because an ID is
subject to the same laws and regulations
that apply to other government entities. The
ID is able to borrow money to finance its
facilities at lower, tax-exempt, interest
rates, the same as cities and counties. Many
contracts for goods and services, such as
annually negotiated maintenance contracts,
are subject to publicly advertised
competitive bidding.
Residents and property owners in an ID set
the standards of quality, which are then
managed by the ID. The ID provides perpetual
maintenance of the environmental
conservation areas. This consistent and
quality-controlled method of management
helps protect the long term property values
in a community.
The Cost of an ID
The cost to operate an ID is borne by those
who benefit from its services. Property
owners in the ID are subject to a non-ad
valorem assessment, which appears as a
separate annual bill or possibly on their
annual property tax bill from the county tax
collector and may consist of two parts—an
annual assessment for operations and
maintenance, which can fluctuate up and down
from year to year based on the budget
adopted for that fiscal year—and an annual
capital assessment to repay bonds sold by
the ID to finance community infrastructure
and facilities, which annual assessments are
generally fixed for the term of the bonds.
Because costs and services vary depending
upon the individual ID, specific fee
information is available for each community.
Lasting
Value
The ID makes it possible for our community
to offer the most desirable elements of a
master-planned community. Residents enjoy
high quality infrastructure facilities and
services with the comfort and assurance of
knowing that the standards of the community
will be maintained long after the developer
is gone. With an ID in place, residents are
assured of the ability to control quality
and value for years to come.
The Alabama Improvement District
Q. What can the Alabama Improvement District
in our community be responsible for?
A. Under current legislation, the ID may
plan, establish, acquire, construct or
reconstruct, enlarge or extend, equip,
operate and maintain the following basic
infrastructure:
•Water management; main line irrigation,
lake and water control structures
•Water supply
•Sewer and wastewater management
•Bridges and culverts
•District roads, signs and street lights
•Parks and recreational facilities
•Fire prevention and control
•Security, including guardhouses, fences,
gates and electronic intrusion-detection
devices
•Control and elimination of mosquitoes
•Waste collection and disposal
•Conservation areas
Q. Who governs the ID?
A. The ID is governed by its Board of
Supervisors which is appointed by the
appointing local government that created the
ID. A professional manager is usually
employed to implement the policies of the
Board.
Q. What do I pay for the services?
A. The ID issues Special Assessment Revenue
Bonds to finance community infrastructure.
Generally, Alabama Improvement Districts
assess each property owner a yearly capital
debt service assessment to pay back those
bonds. In the case of the ID a significant
portion of this capital assessment will be
prepaid by the developer at the time of
closing.
In addition, to maintain the facilities of
the community and administer the ID, the ID
conducts a public hearing each year at which
it adopts an Operating and Maintenance
budget. The finding of this budget is levied
as an Operating and Maintenance assessment
on your property by the Board of
Supervisors. All residents pay for a share
of the maintenance of the ID Improvements
through this annual assessment.
Annual Assessments:
The annual operating and maintenance
assessment amount will be set annually by
the Board of Supervisors.
Q. What are the ongoing responsibilities of
the ID?
A. The ongoing responsibilities of the ID
are to administer the ID bonds and operate
its community facilities and services for
the benefit of the property owners. It is
contemplated, pursuant to the terms of an
agreement between the ID and our Home Owners
Association, that the Home Owners
Association may operate and maintain certain
“Areas of Common Responsibility “. These may
include the following systems and facilities
of the ID:
•Irrigation water facilities not owned by
the franchise utility
•Wetlands, water management and drainage
•Certain common areas including conservation
areas.
How
Do I Find Out More About the Alabama
Improvement District?
If you would like more information about the
Alabama Improvement District, please contact
Pfilip Hunt at the following address:
Gardnyr Michael Capital
500 Blvd. Park E.
Mobile, Alabama 36608
Telephone (251-342-6384)
Email:
phunt@gmcbonds.com
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