The following is a brief summary of Local Improvement Districts and is meant to be a very broad high level view of the procedure.
Local Improvement Districts (LID) are as mechanism available to Towns, Villages and neighborhoods for Telecommunications improvements. Landowners circulate a petition for the LiD within certain geographic boundaries to obtain funding. Once installed, the benefited properties are assessed for the improvement. The cost can be spread out over ten to fifteen years or can be paid in a lump sum at the discretion of each property owner.
The statute is 5 years old in Colorado and has been successfully used in Greenwood Village to move their infrastructure underground.
It is not a property tax, per say, although it is paid by the property owner along with their property taxes and appears on the tax assesment. The debt remains with the Property until is it paid off. The cost of the improvement is divided equally among the benefited properties, so even if a property owner does not agree with the improvement or does not wish to participate, the property is still included in the district. Should 50% of the affected property owners decline the LID cannot proceed.