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I I I I I I I I I I I I I I I I I I I complex and bear no relationship to watershed boundaries. For that reason, a cooperative solution to financing and construction oflmprovements is necessary. Funding of stormwater improvements and services within the City of Fort Collins has been accomplished since 1980 through a stormwater utility. Owners of developed properties everywhere in the City pay fees to the City for stormwater services and improvements provided by the City. Mechanisms available to the City and County for financing construction of stormwater improvements include the following: · Formation of local improvement districts (LIDs) · Formation of taxing districts · Formation of Stormwater Utilities · System Investment Fees Local Improvement Districts (LIDs) Both the City and County have authority to form special assessment districts, generally referred to as Special Improvement Districts within the City or Local Improvement Districts (LIDs) within the County. The County Statute, Chapter 30, Article 20, Part 600 et seq, c.R.S. as amended, provides that the County can form an LID that is wholly or partly within a city, provided that the City consent. The legal theory of special assessment districts is that those properties that benefit from an improvement are specially assessed for the cost ofthe improvement. This funding mechanism has the drawback that indirect beneficiaries may not meet the statutory definition of benefit, and thus pay nothing. Another drawback is that LIDs exist only for the purpose of constructing improvements and cease to exist upon completion of the improvements, so that they do not provide for maintenance of the improvements. Taxing Districts Correspondingly, both the City and County have authority to form taxing districts, known as General Improvement Districts within Cities, or Public Improvement Districts (PIDs) within counties. Taxing districts derive revenues by imposing a mill levy against taxable real and personal property within the district. Taxes derived in this manner are literally property taxes and they can be used for any public purpose consistent with the purpose for which the taxing district was formed. This method of funding has several drawbacks. Properties in a taxing district pay taxes on the basis ofthe relative assessed values ofthe properties in the district. Most often, the relationship between the assessed value and the benefit of stormwater improvements and services is not very strong. Also, tax exempt properties, such as government buildings and churches would pay nothing, regardless of their level of benefit, or runoff impacts to the drainage system 13