Public Improvement Districts and Tax Increment Development Districts
The following Districts were formed by the City of Rio Rancho in accordance with Chapter 5, Article 11 NMSA 1978 “Public Improvement District Act” or Chapter 5, Article 15 NMSA 1978 “Tax Increment Development Act."
|The Village at Rio Rancho TIDD
|Stonegate Communities PID
|Stonegate Communities TIDD
|Lomas Encantadas/EH PID
|Broadmoor Heights PID
|Tierra Del Oro PID
|Los Diamantes TIDD
|Los Diamantes PID
Public Improvement District (PID)
The Public Improvement District Act was enacted by the State Legislature in 2001 and codified in Sections 5-11-1 through 5-11-27 NMSA 1978, as amended and supplemented (the PID Act). The PID Act provides procedures for local governments to create public improvement districts (PIDs) through a petition and hearing process, followed by approval through an election of property owners and qualified resident electors. PIDs are authorized to finance various infrastructure and improvements, including water and sewer systems, streets and trails, parks, electrical, gas and telecommunications systems, public buildings, libraries and cultural facilities, school facilities, equipment and related costs of operation and administration.
The PID Act provides for financing based on levying property taxes on land within a PID, imposing special levies based on benefit to property, front footage, acreage, cost of improvements (or other factors apart from assessed valuation), and by providing for use charges for improvements or revenue-producing projects or facilities. PID taxes, levies and charges may be pledged to pay debt service on bonds or notes issued by a PID. PID bonds/notes are not obligations of the State of New Mexico or the local government jurisdiction in which the PID is located, but are obligations solely of the PID issuing the debt. The City of Rio Rancho adopted Public Improvement District Guidelines and Application Procedures (Chapter 2 Article 10) in October 2003, which enacts policies and procedures for processing and approving applications for approval of PIDs within the City’s boundaries.
Tax Increment Development District (TIDD)
The Tax Increment Development District was enacted by the State Legislature in 2006 and codified in Sections 5-15-1 through 5-15-29 NMSA 1978, as amended and supplemented (the TIDD Act). The purpose of the TIDD Act is to create a mechanism for providing gross receipts tax financing and property tax financing for system level public infrastructure to support economic development and job creation.
The TIDD Act provides for two types of financing mechanisms, a property tax levy and gross receipts tax increment. A district may establish a property tax levy upon real property located within the tax increment development district, with limitations identified in the Act and/or a municipality may agree dedicate a portion of gross receipts tax increment collected within the tax increment development area to the district. Similar to PIDs, TIDD property taxes or GRT increment dedicated to the TIDD may be pledged to pay debt service on bonds or notes issued by a TIDD. TIDD bonds/notes are not obligations of the State of New Mexico or the local government jurisdiction in which the TIDD is located, but are obligations solely of the TIDD issuing the debt. The City of Rio Rancho adopted Tax Increment Development District Guidelines and Application Procedures (Chapter 2 Article 9) revised in January 2009, which enacts policies and procedures for processing and approving applications for approval of TIDDs within the City’s boundaries.