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1. What is an LID?

An LID is a specific geographical district formed by a group of property owners working together to bring needed capital improvements such as sidewalks, streetlights, street pavement, or water and sewer lines. An LID is a way for property owners to finance design and construction of those improvements. The City undertakes all aspects of design, financing and construction of improvements and sells bonds to provide cash for the project. Property owners within the district repay the money through special assessments, usually over 10 to 20 years.

2. Why form an improvement district?

Neighborhoods should consider forming an LID to fund improvements that would benefit each property owner. LIDs have several advantages. Perhaps the biggest benefits to those needing the improvements is the LIDs provide a means of spreading the cost of the Improvements among several property owners. This reduces the cost of improvements compared to the cost of charging an individual property owner.

3. What are the advantages of an LID?

Property owners are able to spread the cost of the improvements over a period of time and may take advantage of the City’s ability to borrow money at lower interest rates than individuals. The larger, more expansive LIDs also allow property owners not familiar with construction, contracting , engineering or financing to depend on the City to undertake the process for them, acting as agent to manage the project ‘s design and construction.

4. What are the disadvantages of an LID?

The process is long and complex and may take longer than normal projects, due to public notice requirements, establishment of a Local Improvement District, and public hearings.

5. How long does it take?

The actual time depends on a number of factors, including the scope of the proposed improvement. A typical LID may take 9 to 18 months, with a more complex LID, such as the street, storm drainage and utility improvements along 67th Avenue adjacent to Cedarcrest Municipal Golf Course, taking two years from the time an interest petition is submitted to project completion.

6. Is there any limit on the size of an LID?

No. But the improvements and the geographical area should be sufficient size and type to benefit an entire neighborhood or community for total service and aesthetic appearance. LIDs are not confined to residential areas alone. They can enhance business districts or mixed use areas.

7. What is a ULID?

The ‘U’ in ULID stands for Utility. ULIDs can be formed whenever the improvement involves a water or sewer system. They are formed for the same purpose and using the same methods as an LID. (When reading this brochure, the terms LID and ULID are essentially interchangeable. )

8. What is the difference between an LID and ULID?

The main difference between LIDs and ULIDs is the type of bond issued to finance the improvements. LID bonds are secured solely by assessments against the benefitted property; with a ULID, revenue bonds are issued. These bonds are secured by property assessments to benefit property owners and not revenues to the City’s water and sewer utility. Property owners in an improvement district can ask the City Council to form a ULID. The Council has the final decision on whether a LID or ULID is formed.

9. Can I protest the LID?

Yes. If 60% or more of the property owners of the total assessable LID protest, the City Council is prevented by state law from proceeding. The percentage is calculated on dollar volume of assessments, not by percentage of signatures. But, this does not apply to ULIDs for sanitary sewers or water mains where the Snohomish Health District has determined the necessity for such improvements. The Council has the authority to authorize the LID to proceed.

10. How do I protest?

In writing. List your name and spouse’s name, street address, legal description of your property, and any reasons for your protest. Written protests can be filed with the Public Works Department any time from the filing of the petitions to 30 days after the public hearing date.

11. What costs are involved in an improvement district?

1. Construction costs
2. Engineering and surveying fees
3. Right-of-Way and easement purchases
4. Property owner searches
5. Advertising, mailing and publishing costs
6. Accounting and clerical costs

12. Who is responsible for these costs?

Costs associated with an LID or ULID are assessed to each property owner in the improvement district.

13. Why doesn’t the City pay for these improvements using taxes paid by citizens?

Marysville, like other local governments, is empowered with the task of planning such improvements as streets, sidewalks and curbs in order to assure uniform planning. But the truth is that except for arterials, general tax dollars do not pay for the streets, sidewalks and other improvements many of us take for granted when the beneficiary is a specific group, such as a neighborhood. These have generally been paid for by local assessments to the property owner.

14. How does the City levy LID assessments?

All property owners are charged for the improvements based on the value received by their property from the improvements. Value is determined by the area of the property, how close the property is to the improvement and lineal feet of the property bordering the improvements. Specific assessment methods include front footage, area, per unit and zone-termini.

15. Are there any upfront, or initial, costs?

Yes. The petitioners are responsible for any and all preliminary costs and expenses incurred by the City in preparing for the formation of the LID should the LID be cancelled. A deposit will be required when the petition is submitted. If the LID is formed, this deposit will be credited to the petitioners’ final assessments. If the LID is not formed, the deposit will be forfeited to the City.