Rexburg council approves low bid for LID 54 amid public concern about Local Improvement Districts

The Rexburg City Council on April 23 approved the low bid from HK Contractors to construct Local Improvement District (LID) 54 and proceeded with the ordinance to create the district after staff said bids came in lower than the city’s original estimates for contiguous properties but higher on scattered “miscellaneous” parcels.

Keith Davidson, the city’s public works director, told the council that three bids were received and that HK Contractors submitted the low bid of $3,297,102. He said the total was lower than earlier estimates in part because the council directed staff to remove curb and gutter from some sections; however, he noted that isolated miscellaneous properties came in at higher per‑unit costs because they lack scale and require discrete mobilization. Davidson said staff has contacted affected property owners about options and, in at least one case, suggested postponing a small area to complete a contiguous sidewalk later.

Public commenters at the meeting spoke broadly against LIDs as a funding mechanism. William Clements, a resident, used a poem to argue the city should emphasize prevention and city-funded solutions rather than passing unexpected bills to property owners; he characterized LIDs as shifting street costs onto “unlucky” residents. Isaiah Stanfield, who identified himself as a city employee, said residents should not bear the cost of city beautification and cited Park Street as an example where he believes residents experienced damage and financial difficulty after a project.

Council members and staff discussed approaches to reduce costs and to study alternatives. Davidson said the city will continue researching practices in other municipalities, noting that Idaho Falls requires property owners to pay for frontage improvements up front while offering no financing mechanism; that city, he said, covered a portion of costs for some residents but the details differ from Rexburg's LID financing. Davidson also said the city is forming a study group and invited council and citizen members to serve; council members asked staff to circulate names of potential citizen committee members.

After discussion the council approved the low bid for LID 54 to HK Contractors. The council also conducted the second reading of Ordinance No. 13-30 (creation of LID District 54) and approved it on voice vote. During the staff presentation, Davidson said the city had reduced estimated costs by removing some curb/gutter work and that miscellaneous properties remain the higher‑cost line items because contractors cannot capture scale on isolated locations.

Davidson and council members discussed long‑term options including potential bond measures, further study of financing alternatives, and an advisory committee made up of business owners, residents with LID experience and other community members to identify alternatives and improvements to the current LID process. Davidson said staff will follow up with property owners and finalize the project schedule and financing paperwork.

The council’s formal action on the LID bid was recorded as a motion and voice vote; an explicit roll-call tally was not provided in the meeting record.