UIPA / Infrastructure Financing
Building the infrastructure for what's next.
Public Infrastructure Districts (PIDs) are a financing tool that helps Utah communities build the roads, utilities, water systems and other public infrastructure needed to support growth.
Explore how PIDs workPublic Infrastructure Districts in Utah / Key Facts
Public Infrastructure Districts at a Glance
A Public Infrastructure District (PID) is a special-purpose government entity authorized under Utah law to finance public infrastructure within a defined area. It creates a way to align infrastructure investment with the properties and development that benefit.
What does a PID fund?
Eligible public improvements, including roads, water and sewer systems, utilities and other authorized infrastructure.
How is a PID financed?
Through authorized district revenue, which may include property taxes, tax differential and bond financing, depending on the district.
Who pays for PID infrastructure?
Financing is tied to the district's authorized revenue sources. Specific repayment obligations depend on its financing documents.
Who can sponsor a PID?
Eligible sponsoring entities include Utah cities, counties and authorities such as UIPA.
Does a PID fund private buildings?
PID financing supports eligible public infrastructure rather than private building construction.
What is UIPA's role?
UIPA may sponsor and approve PIDs in accordance with state law, its governing policies and applicable public review processes.
Understanding the Process
How does a PID work?
PIDs help address a common development challenge: Public infrastructure often needs to be built before new businesses and investment can arrive.
Identify infrastructure needs
A defined area needs public improvements such as water, sewer, utilities or roads to support future development.
Establish a funding mechanism
The PID can use authorized district revenue and, when appropriate, issue bonds to help finance qualifying improvements upfront.
Repay financing over time
Authorized revenues are collected and used according to the district's financing arrangements, including applicable bond obligations.
Why It Matters
Infrastructure that supports growth.
PIDs give communities and project partners another tool for addressing major infrastructure needs.
Supports economic development
Helps prepare sites for businesses, new investment and employment opportunities by financing public infrastructure.
Aligns costs and benefits
Allows infrastructure financing to be associated with the district and the area receiving improvements.
Expands financing options
Provides a mechanism to help deliver eligible public improvements without relying exclusively on upfront municipal funding.
Utah Example
Tooele Valley
The Tooele Valley Public Infrastructure District demonstrates how PID financing can help prepare an industrial area for future development.
The district has pursued bond financing for public improvements including water and wastewater systems, road expansion and utilities needed to serve future businesses.
Financing Options
Understanding mill levies and bonds.
Not every PID uses the same financing structure. The available tools and repayment obligations depend on the district's authorizations.
Property tax mill levies
A PID may be authorized to levy property taxes within its boundaries to support eligible infrastructure and financial obligations.
District bonds
Subject to applicable requirements, a PID may issue bonds to finance improvements and repay debt from authorized revenues.
Tax differential
When legally authorized, a portion of increased property tax revenue associated with growth in the area can support improvements.
Public vs. private improvements
A PID could finance eligible shared water infrastructure, while a developer remains responsible for private connections and buildings.
Common Questions
Separating fact from misconception.
Do PIDs subsidize private developers?
PIDs are designed to finance eligible public infrastructure, not private buildings. Public improvements may support surrounding development, but expenditures must comply with applicable legal and financing requirements.
Are local taxpayers responsible for PID debt?
PID financing generally relies on authorized district revenues rather than general municipal revenues. However, the exact financial responsibilities and risks depend on the bonds, pledges, guarantees and governing agreements. A PID's creation alone does not establish that a city or county guarantees its debt.
Are PIDs only for industrial projects?
No. PIDs can support eligible infrastructure associated with a variety of development types, including industrial, commercial and residential projects, subject to legal authorization and sponsoring entity approval.
Are PIDs the same as tax incentives?
No. A PID is a governmental financing mechanism for public infrastructure. Tax incentives are separate tools with their own eligibility, approval and performance requirements.
Who approves the creation of a PID?
The eligible sponsoring entity reviews and approves a PID under applicable state law. UIPA also follows its own PID approval process, including public board consideration.
Accountability
Public oversight is part of the process.
Public Infrastructure Districts are governmental entities subject to applicable statutory and financial requirements. UIPA's approval process includes additional public board review.
- Two public UIPA board meetings as part of the Authority's PID approval process
- Applicable state requirements governing PID formation
- Required financial reporting and public accountability
- Applicable review and approval requirements for bond issuance
- District-specific governing and financing documents