Boone County is considering the creation of a new funding district for future infrastructure projects.
On Tuesday, the Boone County Fiscal Court conducted a first reading on an ordinance relating to the creation of a Transportation Improvement District — a special-purpose governmental entity created to coordinate and fund transportation-related projects within a specific geographic area.
“A TID is a new tool in the toolbox,” Judge/Executive Gary Moore said during the meeting. “This is a new tool for local governments to bring more local control to projects which might be state or federal or otherwise.”
Wade Williams, an economic development consultant for Cincinnati-based Montrose Group, presented to the court about Transportation Improvement Districts, specifically the benefits and implementation process.
Williams said the Montrose Group was “actively collaborating with Boone County” to craft a report on recommendations to create the district.
In 2022, the Kentucky House of Representatives passed HB 274, legislation that authorizes qualifying city and county governments to create Transportation Improvement Districts. Gov. Andy Beshear signed the bill into law in May of 2022.
Williams’ presentation argued that a Transportation Improvement District was an effective tool to help local governments improve transportation and promote economic development because it gives them local control of a funding mechanism for those projects.
As outlined in the bill, the governing structure of a Transportation Improvement District requires the creation of a board of trustees appointed by a county legislative body. The board’s responsibilities include adopting bylaws, overseeing Transportation Improvement District affairs, ensuring smooth functioning, approving projects, and ensuring compliance with the legislative framework.
The Transportation Improvement District also has financing authority that is subject to the governing legislative body’s approval. The authority allows the Transportation Improvement District to issue revenue bonds, receive grants from local, state and federal funding sources, and court private investments.
A Transportation Improvement District’s governing board of trustees is required by law to include five voting members — two must be members of the local chamber of commerce, although Williams’ said representatives from any active Boone County business group would qualify — one non-voting member appointed by the largest city in the county, and one non-voting member appointed by the county planning commission. All board members are required to be residents of Boone County.
To authorize projects, the board must hold a public meeting and publish a meeting notice to field questions and input from community members. Once the board authorizes a project, it would require the final approval from the county’s governing body, or in this case, the Boone County Fiscal Court.
Eligible costs under a Transportation Improvement District include construction, property acquisition, demolition or removal services, site preparation, equipment, communication facilities, financing expenses, studies and professional services.
Williams said Transportation Improvement Districts are common across the United States but are particularly prevalent in Ohio. Within the Greater Cincinnati area, Warren, Butler, Clermont and Hamilton counties all have established Transportation Improvement Districts.
“The introduction of transportation improvement districts in Kentucky represents an enhancement in Kentucky’s toolkit for funding and expediting transportation projects,” Williams said.
As of now, there are no Transportation Improvement Districts in Kentucky. If passed, Boone County would be the first county in the state to establish the district.
“Another tool in the toolbox is another way I look at this,” Moore said. “Nothing says we have to use it if we create it, but if we do create it and it’s a resource that’s there to be able to be a recipient of funding to expedite projects, I see that as a huge plus.”
Commissioner Chet Hand raised concerns over the Transportation Improvement District, notably the creation of another permanent board, district financing vehicles, and compensation of future board members.
“One of my high-level concerns is that we have too many boards and commissions in Boone County, and the majority of them end up – again, I’m generalizing, broad brush stroking here – but they are unelected bureaucratic entities with no accountability to the voter,” Hand said.
Moore pushed back, saying that from his perspective, it would be preferable for the county to move forward with the ordinance. He said conducting a first reading would give community members a chance to react to the ordinance and generate questions regarding it.
“We’ve got a lot of questions to answer, a lot of i’s to dot and t’s to cross, but I’d like for Boone County to be a leader and I’d love to be able to get projects done quicker for our residents,” Moore said.