It seems like everywhere you look new subdivisions are popping up. Areas that used to be open expanses of land now host hundreds of homes. Unfortunately, the sheer number of new people in an area often overwhelms the existing infrastructure. To create and support the required new infrastructures, developers create metropolitan districts. But many people wonder, what is a metropolitan district and what does a metropolitan district do for the community? Here are a few answers to these questions.
What Is A Metropolitan District?
A metropolitan district is a government entity created separately from the city or county government where the communities exist. Community developers create these districts to pay for the required infrastructure within and surrounding the new communities. Some of these infrastructures include but are not limited to streets, parks, schools, water/sewer lines, storm drainage, and more. Metro districts may also help ensure affordable housing within the new communities.
Why Are Metro Districts Created?
When new communities are in the planning stages, governmental officials outline who will pay for what. The city, the county, and the developers fund various infrastructures.
Because most developers run for-profit businesses, the city or county will help offset the developer's costs by helping to provide funding for part of the developer's obligation. This assistance by other government entities attracts developments and ensures developers build needed infrastructures.
Metro districts obtain more favorable government financing for the funding of infrastructures. This financing may be in several forms, such as more favorable bond rates due to guaranteed tax revenues available to pay the bonds.
What Does A Metro District Do For The Community?
Metro districts provide additional financial avenues that can do a lot for the communities they support. First and foremost, metro districts provide funding to ensure developers build more desirable amenities in the new communities. While these amenities will vary based on the needs of the communities served, some amenities may include recreation centers, public pools, public parks, walking/biking trails, and mixed-use spaces. Developers may incorporate open greenways, golf courses, man-made lakes, and other luxuries into the communities.
Secondly, metro districts can also help lower the price of housing in the new community. By creating a funding source for the required infrastructures, metro districts keep the needed funds from being added to the base price of homes in the form of additional taxes and fees.
Metro districts can also help contain tax hikes for surrounding homeowners. Containing and paying the expenses within the district keeps other homeowners from potential tax increases to pay for these infrastructures.
