What is a Public Infrastructure
District (PID)?
Public Infrastructure Districts (PIDs) are a tool used throughout Utah to fund public infrastructure—like roads, utilities, sewer systems, and water—without placing the cost on all taxpayers.
Instead, the investment is tied to the value created within the area that benefits.
PIDs accelerate responsible development, enabling communities to grow strategically and sustainably.
Why Use a PID?
- Supports Economic Development: Helps cities and counties attract job-creating businesses by creating an independent funding mechanism .
- Property Value-Driven: Costs are borne by the increased value of the properties or a specific tax within the district, not the general taxpayer.
- Used Across Utah: Over 300 project areas in Utah are sponsored by cities, counties, and statewide authorities.
- Not Private Development: PIDs are strictly for public infrastructure—not for private buildings or facilities.
Example: In Tooele County, a PID was created to fund the backbone infrastructure—water and sewer lines—to serve future manufacturing, with no funds used for private construction.
How Does a PID Work?
PIDs operate using a form of tax increment financing (TIF)—defined as “differential” in the Utah State Code. This means that as the property value increases in the PID area, that increment can be used to pay for public infrastructure. PID can also use the projected future tax growth as collateral to issue a bond to receive up front capital to pay for the infrastructure now, and use that future tax to pay down the debt as the taxes are collected.
Sponsored By:
- Cities
- Counties
- Port Authorities (like UIPA)
Developer Perspective
PIDs are a valuable tool for developers seeking to:
- Build in areas lacking infrastructure
- Minimize upfront private capital costs
- Invest in communities without waiting for municipal funding
They allow developers to align their private investment with public infrastructure upgrades—ensuring long-term value creation for both the project and the community.
Mill Levies
A PID may collect a special mill levy (property assessment tax) to pay for infrastructure costs.
For example:The PID may fund regional shared water lines, while the developer pays for private service connections to their specific lot.
Common Misconceptions—Clarified
Misconception: “PIDs subsidize developers”
Fact: Developers pay into the system through special assessments or levies. Funds can only be used for public infrastructure that is transferred to a city or county.
Misconception: “Communities are left with the debt”
Fact: The financial responsibility lies within the PID. If property values don’t grow as expected, the bondholders, not the local community, absorb the risk.
Misconception: “PIDs only benefit industrial projects”
Fact: PIDs can support any community project with public infrastructure needs—including housing, commercial zones, and education hubs.
Oversight and Accountability
Utah ensures strict transparency and approval processes, including:
- Two-meeting public approval cycle (unique to UIPA, adding an extra step for transparency)
- State Finance Review Commission oversight on bond issuance
- Local government and public involvement throughout