PIDs operate as completely separate entities from other governmental entities; they’re basically big contracts between a lot of neighbors, not extensions of the state.
The day-to-day operations and decisions of a PID are governed by its board. How many board members serve in a PID is dictated by the governing document.
The members of this board are initially appointed by the legislative body of the creating entity (such as the City Council). After the initial appointment, elections are held to replace board members when their terms are up. The term of office for a PID board member is generally fixed at four years, but about half of the board may serve for six years during the first years of the PID so that replacement elections are staggered every two years.
Board members represent divisions of the PID, just like congresspeople represent districts in a state. The boundaries of those divisions may be adjusted every four years.
The transition from municipal-appointed board members to elected ones can happen sooner than the four-to-six-year deadline. However, if the governing document sets forth milestones that need to be reached in order to do so, such as meeting a prescribed density level in the division for each board member.
Preference goes to potential board members living in the PID, but if there are no resident applicants for a position or if the property owners consent to waive the residency requirement, then board members may live outside the boundaries of the PID. Each board member does, however, need to be a property holder in the area governed by the PID and a registered voter (§17D-4-202(3)(c)).
Typically, business conflicts of interest prevent someone from serving in public office. But in a PID, a person with a major business or property holding affected by the PID can still be elected or appointed to the board as long as they disclose their business relationship with the creating entity before appointment or election and upon any significant change in that relationship.