Overview
A Public Infrastructure District (PID) is a limited-purpose local government entity created to finance and facilitate the development of public infrastructure within a defined geographic area. PIDs are commonly used in growing communities where significant upfront investment is needed for infrastructure improvements such as roads, utilities, parks, trails, public facilities, and other improvements that support new development.
Unlike a traditional city or county government, a PID does not provide general municipal services. Instead, it serves as a financing tool that allows a community to identify, fund, and manage specific public improvements within the district boundaries.
Under Utah Code §17D-4, PIDs have authority to finance eligible public improvements through mechanisms such as:
- Levying additional property taxes within the district;
- Imposing fees or assessments authorized by statute;
- Issuing bonds or other debt instruments; and
- Entering into agreements related to the construction, financing, operation, or maintenance of public improvements.
A PID is governed by a board of trustees, which may be elected or appointed depending on the circumstances under which the district was created. The board is responsible for overseeing district operations, approving budgets, managing financing obligations, and ensuring that district activities comply with applicable laws and adopted plans.
PIDs are similar to other limited-purpose governmental entities, such as Community Reinvestment Agencies (CRAs) and Special Service Districts (SSDs), because they provide local governments and communities with additional tools to address specific development needs. However, each entity has different purposes, authorities, and limitations.
For local governments, understanding PIDs is important because they can influence how growth is financed and how infrastructure is delivered. When used appropriately, PIDs can help communities accommodate growth by providing a mechanism to construct needed improvements without requiring the entire financial burden to be carried by existing taxpayers. However, because PIDs may involve additional taxes, fees, or long-term debt obligations, careful review and transparency are essential to ensure that the district aligns with the community’s long-term goals.
Content Contributors: Jones and DeMille Engineering, Inc, Hansen Planning Group, LLC / Rural Community Consultants
Special Note: This material was developed by civiclinQ for the Land Use Academy of Utah (LUAU). Funding for the development of this material was provided by through the Land Use Training Fund, which is administered by the Office of the Property Rights Ombudsman , utilizing a portion of the 1% surcharge on all building permits in the State of Utah.
The role of this organization in administering funding is primarily administrative and should not be viewed as legal advice. Always consult your legal representative when addressing land use activities.
Use the ‘Materials’ tab above to view related course materials, including printable pass-along card and PDF version of this online course.
