CID attorney outlines how community infrastructure districts finance public infrastructure

Attorney Stephanie Bonnie presented a primer on Community Infrastructure District (CID) law and practice, telling the board how CIDs can finance public infrastructure and what limits and responsibilities apply.

Bonnie said CIDs allow developers to access tax-exempt financing for public infrastructure, can levy an administrative tax up to 0.1 mill, and may issue special assessment bonds and revenue bonds under statutory limits. She explained that general obligation bonds require voter approval by two-thirds (0.667) of district residents where applicable, while revenue bonds require a simple majority but also require demonstrable revenue to support repayment. "CIDs can levy an administrative tax levy up to 0.1 mil," Bonnie said; she also repeatedly emphasized the board's fiduciary duty: "This is public funds. So we have a fiduciary responsibility to make sure that it's not misused."

Her overview also covered reimbursement timing for developers (often bridging finance until bonds or assessments are in place), continuing disclosure responsibilities for bond issuances, and the board’s role approving reimbursement requests and infrastructure contracts. Board members asked clarifying questions about developer reimbursement timing and corrective steps if audits identify problems; Bonnie said the board and staff have responsibility to ask questions, dig into tax and IRS rules on tax-exempt financing, and ensure eligibility before authorizing reimbursements.