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LEDs Are Only Financing Tools <br />The most important point to remember about LIDS is that the entire LID process is about <br />financing capital improvements, not constructing there. Nowhere in the LID statutes will you find <br />information on technical feasibility, design, cost estimates, construction management expertise <br />and project closeout requirements. It is assumed that a city will do a superb job of design, <br />estimates and construction managementforthe infrastructure improvement, justasforany other <br />project not financed by a LID. <br />LID processes lead, ultimately, to the sale of bonds to investors and the retirement of those <br />bonds via annual payments by the property owners within a district. Goals of the LID process are <br />twofold: to present a bond portfolio to investors that will entice them to invest at as low a rate <br />of return as possible; and to assess property owners as fairly as possible in relation to the special <br />benefit received. <br />LIDs cost money to administer. Interim financing incurs interest costs. Bond sales involve bond <br />counsel, underwriters and other costs. All these costs must be added to the share of project <br />costs that LID participants are expected to assume. Unless reminded at times through the <br />process, LID participants may unfairly compare project costsfrom other, non -LID projectsto the <br />total cost to be assessed. <br />UDs Are Personal <br />LIDS are very personal. Projects not funded by LIDS may be controversial, cause traffic <br />disruptions and generally make people irate. An LID asks them to not only put up with a project <br />they may not like personally and which may disrupt their lives, but also to pay for it. Even if they <br />are in favor of the project, property owners are going to be more interested in the project and <br />cost issues than they would be if they had no personal financial stake. <br />Involvement of as many potential LID participants as possible in the early stages of a project is <br />a necessity. Informal meetings to discuss potential project scope, benefit area and other <br />concerns will not only give the participants a sense of being involved but may also help a city to <br />determine whether an LID will be feasible. Continued involvement of LID participants via <br />participation in a steering committee during the environmental reviewand design stages will help <br />the project team avoid unnecessary disruption to adjoining property owners. When an LID <br />formation hearing is scheduled, project staff should be very open to individual or group meetings <br />to explain overall LID processes and the type of testimony that is appropriate at the formation <br />hearing. <br />During construction, informal meetings or mailings to each LID participant at least monthly will <br />keep your public relations star shining bright. Be sure to include financial information, good or <br />bad. When the final assessment roll hearing is scheduled, project staff should, again, be very <br />open to individual orgroup meetings to explain the assessment roll and the sortof testimony that <br />is appropriate at the hearing. <br />LIDS Are Complicated and Require a Cast of Thousands <br />LIDS are not the most complicated thing in the world (programming a VCR (remember them?) is <br />much harder), but they do require attention to detail and processes. Checklists and flow charts <br />are very useful, perhaps even essential. Project management software for personal computers <br />Local and Road Improvement Districts Manual for Washington State Sixth Edition 3 <br />